Sep 02 2020
How to Make the Most out of Tenancy Changeovers
Posted in News & Articles
When you own a rental property, the dream of course is to have a stable long-term tenant who will happily stay there for as long as you’d let them.
However that’s not the reality for most landlords – the average tenancy in New Zealand is 2 years and 3 months. So a tenant change-over is an inevitable process you’ll have to go through.
And up front we have to say that’s not a bad thing. Firstly, while it does require a lot of time & effort – it also gives you as the property owner an opportunity to make improvements and consequent rent adjustments to your property. Often long-term tenants are resistant to both of these!
And secondly, if you use a property manager all the time and effort spent is ours. Tenant changeover is a core part of the property manager’s role, and our team have the experience and expertise to turn it into a benefit for both you and your tenants.
Here’s Our 5 Step Guide to a Great Tenant Changeover!
Step 1: Ensure the Previous Tenant Exits Well
There are lots of reasons for a tenant to vacate – and while the fractious ones always make the headlines, the vast majority of reasons for a tenant to vacate are benign – they are either moving location or their living circumstances have changed.
It’s important for us that that they leave well – that their final accounts & bond is quickly settled, and the final tenant inspection is efficient and thorough. Over 90% of our tenants leave with a glowing referral from Point – and many go on to tenant with us again.
Step 2: Make the Most of the Changeover Opportunity
From the moment the tenant submits their intention to end their tenancy, our team at Point will start looking for ways to use this as an opportunity to increase the capital value and yield of your property. Every Point property is regularly assessed for ways in which simple changes and renovations could be made to enhance your investment and provide you with a better return. We’ll provide you with options, offer to manage the process and factor this into the timing of the tenant changeover. Click here to find out more out about Point Property Growth Plans.
Even if you don’t plan to make any changes, we will conduct a rent review at this time to ensure you are getting the most from your property. A tenant changeover is also an opportune time for landlords to conduct a standard meth-test on your property. This is not a reflection of your previous tenant, but more a measure for your own insurance and protection.
Step 3: Advertising!
It’s so important to present and advertise your property to its best advantage. We take pride in bringing out your property’s best features and selling points using clear and strong photography and descriptions.
We’ve seen some great properties undersold through poor presentation over the years – but our team are trained in bringing out the best in every property. We also utilise the most searched websites for advertising, as well as prominent and effective rental boards. Point Property prides itself in a very low vacancy rate (less than 2%) for the over 740 properties that we manage.
Step 4: Tenancy Screening and Selection
Here is where the rubber really meets the road! Ongoing changes to the Residential Tenancies Act and the Privacy Act have given tenants greater rights than ever before – which ultimately means there are even greater consequences of poor tenant selection.
Having a property management team on your side who have both the expertise and experience in dealing with tenants is invaluable. Point Property has a stream-lined and thorough process of tenant screening, evaluation and selection – so that as the property owner you have the assurance your property is entrusted to tenants who will respect and treasure living there.
Step 5: New Tenant Induction
The final stage of the tenant changeover process is ensuring the new tenant is settled and well inducted into their new home. Our Property Managers will take the time to answer all their questions, guide them through the property and make sure they have all the information they need. We’ll also conduct a new tenant inspection at 6 weeks to confirm everything is in order.
It’s our goal to ensure your property is well tenanted and generates both optimal yield and capital value. We focus on nurturing long term and positive relationships with all our tenants – and when things inevitably have to change, we make those changes work to the best possible outcome of everyone concerned.
Tenant changeovers are a part of the life of a rental property owner – the key is to make them work for you.
It’s all down to managing your property with intelligence.
Which is why you should manage your property with Point.
Contact Point Today…