5 Tips for New Landlords

by Nov 22, 2016Uncategorised

an investor and their tenant in Auckland

Investing in property is one of the most popular ways to secure a positive financial future in New Zealand. Investors who find the right investment property benefit from a consistent source of income and capital gains while their tenants pay off the mortgage.

There’s a lot to know and a lot to do when it comes to being a successful landlord, from keeping your tenants happy to abiding by a multitude of laws. With a bit of research and advice, even an inexperienced property investor can manage the process and successfully climb the property ladder. It is essential to read and fully understand the residential Tenancy Act to fully understand yours and your tenants rights and obligations.

1. Find Quality Tenants

A great tenant is invaluable. They will take care of your property, occupy it for a long time and always pay their rent on time.

When reviewing multiple applications, take your time to ensure you find the best option. Quality tenants will have a great rental history, income, credit history and references. Landlords can also access a database to check if applicants have had trouble with rental properties in the past.

Investing in a professional property manager is generally regarded as best practice.

2. Conduct Repairs and Maintenance Quickly

It’s your responsibility to conduct repairs quickly and to a professional standard. Addressing issues promptly keep your tenants happy and stop costs from mounting. If property damage presents a safety risk to your tenants it can also land you in legal trouble.

While tenants are responsible for keeping your property clean and tidy, it’s your responsibility to keep it well maintained. A simple coat of paint, replacing an appliance or removing a wall can do wonders for your property value, both on the market and in the eyes of current tenants.

3. Treat Property Investment as a Business

The biggest mistake new landlords make is treating their investment property like a hobby rather than a serious business venture. Successful property investment requires a business plan, assistance from experts and a strategic approach.

Another mistake is treating the property like your own home and catering to your personal taste. Interior design should be neutral and appeal to the widest selection of tenants possible. While you might think a lime green feature wall looks great, it could deter a great tenant.

New landlords often find it daunting to increase the rent. But you should always review your rent and ensure it’s consistent with market levels. It’s better to make small, regular increases rather than one big one that shocks your tenant into moving out.

4. Focus on the Big Picture

If you’re serious about creating a better financial future through property investment, you need to think about the big picture. That means having a long-term strategic plan and focusing on building a portfolio.

To effectively build your wealth, you need to ensure your property has a high rental yield and capital value. The higher your equity and rental returns are, the more you can borrow for additional investments.

5. Seek Professional Services

One of the most important traits of a successful investor is the ability to leverage the expertise of professionals. This includes using accountants, independent property valuers and an expert mortgage broker. This helps to ensure that you get the best rates and lowest deposits for your investment mortgage.

iLender helps new property investors secure their financial future through the New Zealand property market. Our Auckland based mortgage brokers help investors locally, across New Zealand and overseas with buying and managing NZ investment properties.

Call us today on 0800 LENDER (0800-536-337) or contact us online with any questions you have about property investment.

About iLender

At iLender we put your best interests first and not the Bank – our advice is unbiased as all Lenders who we do business with pay about the same in commissions.

Although we are Auckland based Mortgage Brokers, we help customers everywhere in New Zealand and overseas with buying property in New Zealand, as we are very much about online and giving advice here and now!

The 5 big benefits of Property Investing

Rental property is a popular and profitable form of investment. Buying the right investment property can provide strong capital gains and regular income, while being able to leverage real estate opens up new opportunities for creating wealth.  Thinking about...

How to get a mortgage when you are Self-Employed

There’s a lot to be said for working for yourself. Whether you’re a freelancer, contractor, or small business owner, striking out on your own offers a sense of opportunity that’s hard to find in salaried roles. However, self-employment can make things tricky when it...

Government Housing policy changes – March 2021

Can they work or is there ‘an elephant in the room’? A lot of comment has been made around the Government’s changes to Residential Property Investment over the last few days, so I thought commentary from me, with nearly 30 years in Property Finance, might bring some...

What kind of loans can I get with bad credit?

A few financial slip-ups in the past can have a surprisingly big impact on your credit rating. A bad credit rating indicates that you may be a risky borrower, which can make it difficult to get the bank’s approval when the time comes to apply for a home loan....

LVR changes and what do they mean for you?

Background In 2013 the Reserve Bank introduced LVR restrictions to curb a potential overheating of the property market. As a rule, owner occupiers needed a 20% deposit and investors 40%, later reduced to 30%. There was some leeway with banks able to lend a very small...

Getting a home loan: What to do when the bank says “No”

It’s easy to feel discouraged when a bank rejects your home loan application, but it’s important that you do have other options when it comes to securing a mortgage. Non-bank lending can be an excellent option for home buyers who have had their mortgage applications...

Credit searches – What to know before you apply for a Mortgage or Loan

All Lenders use a credit search as part of their assessment of a Mortgage or Loan Application and there are some things that are important to know. Some Lenders use a credit scoring system, some don’t. Credit Scoring Mainstream lenders use a credit scoring system and...

More Reasons To Be Cheerful

Upturn in House Prices… A couple of the major Banks are predicting house prices to increase by up to 7 per cent next year with the property market due to "spring back to life". This is a welcomed announcement as it comes on the back of a fairly quiet winter - so signs...

Can I get a home loan with bad credit?

Getting a mortgage can be challenging if you have bad credit or no credit history. Banks tend to perceive you as more of a risk and are generally less inclined to approve your home loan application.  But that doesn’t mean it’s impossible to get a mortgage. Here...

The truth about mortgages, interest rates, the housing market and everything else the media likes to sensationalise!

  'House prices down' 'First home buyers finding it impossible' 'Investors exiting the market' Such headlines are gross exaggerations and often blatant misrepresentations of the truth. The Housing Market This is flat, but stable. QV (NZ's leading provider of...

Best mortgage rates, 10% deposit owner occupied and 20% rental purchase, self employed with no financials and help for those with bad credit or arrears.

Hundreds of reviews on TradeMe and Google makes us your ‘Number 1’ choice.

Call 0800 536 337