It so happens that too many property owners simply don’t achieve the rental yield they deserve, or, more correctly; the presentation of their property doesn't allow them to achieve what the property is capable of achieving.
Believe it or not …. This lack of attention to detail, or simple presentation, ensures that too many property owners frankly couldn't expect, or possible don’t deserve market rent. A hard call? No its true.
As Business Development Manager for RentWellington, I see these properties every working day, that either cannot be rented in their current condition, or that those properties are being rented at rates well less than current market rents because of a lack of energy or simply no energy has been given by property owners to presenting their address to the marketplace.
In every suburb of New Zealand, statistics are generated quarterly detailing residential rental rates and it is very evident to us that the divergence in rates for similar houses of up to 25% can be traced straight back to how the property is presented for the market.
So let’s use a current example of a 3 bedroom house in Karori. Stats currently indicate three levels of weekly income :
- Low quartile rent of $450pw
- Medium quartile rent of $500pw
- Upper quartile rent of $553pw
This differential in similar aged and located houses is more often than not due to the following:
First impressions that will turn off prospective tenants, or turn the into applicant tenants. Improvements need not be expensive.
The section and property generally:
- Long grass and shrubs left unattended
- Trees encroaching and obscuring sun light
- Remains of previous tenant occupation
- Section with littered rubbish and rotting fencing/decking
- Dirty and unpainted exterior paint work
- Broken or cracked windows
- Entrance way dirty with old newspapers, unopened mail and pots of dead plants
- The roof and weather boards showing obvious signs of neglect
- Chimneys that are clearly an earthquake risk
- A jungle of leftovers and sodden items
- A foul smelling damp space
- Old worn wall paper
- Paintwork showing signs of neglect
- Failing piles that have lead to sloping floors
- Carpet stained, old, or threadbare flooring
- Poor lighting fixtures
- Water stained in kitchen or bathroom
These faults all represent a major reason for prospective tenants, either choosing not to make an offer or to offer at a much reduced rental.
For the owner it means taking reduced rent for a property in this location or worse still, their property remains vacant for weeks or even months at a time.
Every one of the points mentioned above are easily repaired, cleaned or left overs delivered to the dump.
As Property Managers, we are very particular that houses under our management are presented in the best possible condition. We are currently renting properties on average 7% over market rents in the suburbs we manage in, and over the past 90 days it is taking on average of 26 days to source a new tenant.
So if you are looking to rent at between 5 % and 8 % above market quartile rates, give us a call. We may make recommendations to you and advice how to obtain those top rates. Usually it only requires attention to some those items I mentioned above.
If you would like to chat property, I’d be happy to meet. Do call our 24-hour reception on 0800 567 567