When you own a rental property, the dream is to have stable long-term tenants who will happily stay for as long as you let them.
However, that is not the reality for most landlords – the average tenancy in New Zealand is two years and three months – so tenant changeover is an inevitable process that you’ll have to go through.
Surprisingly, tenancy changeover may not be such a bad thing.
Firstly, while it does require a lot of time and effort, it also gives you an opportunity to make improvements and consequent rent adjustments to your property as the property owner. Long-term tenants are often resistant to both.
Secondly, if you use a property manager, it doesn’t cost you any time and effort. Tenant changeover is a core part of the property manager’s role, and our team have 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
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, most leave because they are moving location; their living circumstances have changed; or the property is not maintained to a reasonable standard.
It’s important to make sure that they leave well – their final accounts and bond are 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 become tenants with us again.
2. Make the most of the changeover opportunity
From the moment the tenant submits their intention to end their tenancy, the 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 managed 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 have recently developed an asset management plan for the life of your property, and we are in the process of working through each property to provide this to you. The plan will provide you with valuable information to assess repairs and capital expenditure with cashflow guidance.
When it comes to making recommendations for refurbishment, we’ll provide you with options, offer to manage the process and factor this into the timing of tenant changeover.
Even if you don’t plan to make changes, we conduct a rent review to ensure you are getting the most from your property, relative to its condition and the market.
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 by using clear and strong photography and descriptions.
We’ve seen some great properties undersold through a 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 for the total portfolio we manage.
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 expertise and experience in selecting great tenants is invaluable.
Point Property has a streamlined a thorough process of tenant screening, evaluation and selection – so that as a property owner you have the assurance your property is entrusted to tenants who will respect and treasure living there.
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 take time to answer all their questions, guide them through the property, and ensure they have all the information they need. We also conduct a new tenant inspection at six 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 change, we make those changes work to the best possible outcome of everyone concerned.
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