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.
