1 June 2017 Newsletter - 1st Jun 2017

1 June 2017 Newsletter Hello
 
We are heading into the depths of a Nelson winter, which means shorter days, and more time hibernating inside and watching the latest series on Netflix. However it is a stunning time of the year with crisp clear mornings, snow on the ranges and a very calm Bay. 
 
Rental Market Update.
The Winter rental season is here in Nelson/Tasman and we are seeing a surplus of properties on the rental market. Currently listed on Trademe there are 190 properties available for rent  in the Nelson Tasman region. With very few tenants on the move in winter this makes for stiff competition. As always at this time of year, insulation, heating and sun are at the top of the tenants requirements. If your rental property has no heating and poor insulation it could sit for a while at this time of the year, which could be costly. It would be worth investing in some good insulation and heating to improve your asset and also get your property rented quicker. Let your property manager know if you would like them to organise quotes for a heat pump or insulation.
 
Rent Increases
At Haven Property Management we recommend regular rent increases for your property. By regular we mean at least once a year, regular increases are normal and healthy. If you have a good long term tenant, we always take this into consideration when suggesting the rent increase. In our experience a tenant will not move from their rental property for a $10 increase. We also give them plenty of prior notice - 60 days/two months.

Why do we suggest regular rent increases?
 
Two main reasons - A tenant is going to be able to budget much better for smaller regular increases rather than receiving an unexpected large $50pw increase and increasing annually means that once the first increase is done the tenant will just come to expect an   increase around that time every year. 
 
Happy tenants don’t move - A rent increase is normally the last straw, rather than the sole reason, that pushes a tenant to give notice. Just as you don’t want to rock the boat with a rent increase, your tenant is not likely to want to uproot his entire home for one single reason. If your tenant is generally happy with the tenancy then they are more likely to stay irrespective of the rent increase. How do we keep your tenants happy? Dealing with maintenance and repair issues promptly, not intruding on your tenant’s privacy, ensure that we handle disputes and issues professionally. 
 
The second reason is to ensure (if your property is an investment property), that it is getting fair market rent. This is most important when you eventually come to sell your property. We are currently seeing a large number of out of town investment  buyers purchasing properties in Nelson. They always look at the condition of the property along with what the current rent is. If you have not had a regular rental program in place and your property is under market rent by $50 - $60 per week, this could end up costing you thousands of dollars at sale time if the buyer is working out their return on investment. 
 
Please feel free to get in contact with your property manager or our new manager if you have any questions about the rent on your property. We also appreciate that at the end of the day it is your choice whether you would like the rent increased. We just want to ensure we are doing our job as your professional property manager by keeping you informed on what the market rent is for your property.
 
 

« Back to News
site powered by - Turboweb :: Simple Web Manager