The COVID-19 crisis has had a mix of effects in New Zealand’s economy. Whereas some sectors like travel and tourism have been badly hit, other sectors such as the supply of essential commodities and IT are experiencing a sort of boom. Property markets have also seen a mix of responses. During the level-4 lockdown, activity was minimal. But as the economy reopened, there’s been a resurgence.
A significant proportion of this new activity is due to new entrants in the market. Property manager, Steven Price of Viva Property Management reckons that this is great for the industry. He says “we are experiencing an exciting level of interest in candidates keen to join real estate. Many have been made redundant from their airline or hospitality positions so are wanting a big change. And what better career than real estate! It’s refreshing to see successful, highly engaged people join our industry and be focused to thrive.”
But, to thrive as an investor in real estate, you must know how to attract and retain top-of-the-cream tenants. Here are some tips to help you with this.
Get help to buy property in New Zealand
You cannot expect to attract top-of-the-cream tenants if you’re planning to invest in anything but excellent property. Perhaps you have already identified a home to buy. Remember, smart investments begin with a great buy.
The process of buying property in New Zealand begins with finding an excellent mortgage broker. Someone who can help you negotiate amazing financing to buy excellent property.
Reach out to a trusted and proven mortgage broker to help you buy property in New Zealand.
Describe your ideal tenant
One of the reasons for the increased interest in real estate is the growing demand for rental units. As Steven observes, “We are seeing an increased number of potential tenants wanting to fast track the process – seemingly desperate to secure a home to rent. There is huge competition in the rental market with tenants far outnumbering the number of available rentals.”
Of course, this is good news for anyone who wants to buy property in New Zealand for investment purposes. But you must be clear on who you would like to have as a tenant. This will also guide you on what kind of property to buy.
Some important tenant characteristics may include financial stability, a good rent-paying record, adherence to rental agreements, relates well with neighbours and has no history of forceful evictions.
Cover the basics
Once you have a picture of whom you would like to have as an ideal tenant, ensure that you cover all the basics. Ensure the home is well built and is impeccably finished. Make sure it’s in a ready-to-move-in condition before you start seeking for tenants.
Boost value with add-ons
Where possible, boost the value of your home with some add-ons. Or you can buy property already fitted with these extra features. For instance, you can have a well-fabricated family entertainment room. Or, an in-built gym and an amazing kitchen with some appliances already available.
These add-ons will not only boost the value of your property, they’ll make it stand out and appeal to the ideal tenant.
Invest in great advertising and photography
With the home features covered, the next step is to tell it on the mountain.
Invest in a good-quality and thorough advertising campaign that’s sure to reach and appeal to your target clients.
One way to ensure that potential tenants get the best picture of what you are offering is to give them the best picture. Invest in good photography, pictures that will speak more than a thousand words about the property.
Know all the amenities in your area and mention them in your listings
Don’t forget to mention in the listings the amenities within the neighbourhood.
Mention the schools, parks, recreation facilities, doctor’s offices, malls and other amenities that’d make life better for your tenant.
Lastly, maintenance is key
These steps will help you buy excellent property in New Zealand and attract top-of-the-cream tenants. But to retain the tenants you must keep them happy. In other words, be flexible and don’t drop the ball on maintenance.
As Steven notes ” We are noticing a shift in mentality with some investment owners. Post Covid-19, obviously, some are under immense financial strain, and thus, are very open and keen to do all the maintenance they can to keep the tenant happy and in place.
Maintenance and flexibility will help you to keep the tenant happy and thus, retain them.