The rental market across the world has started to increase on a huge scale. Some countries in Europe are more oriented at renting their properties rather than buying them. Obviously, on the opposite hand, there are countries around the world where the majority want to own their own property. Here in New Zealand, we have a strong and good reputation in our rental market. Our rental properties are some of the finest in the world. However, before you embark on renting a property, it is well worth doing a little bit of research to find out what you are getting in to.
For maximum safety, finding a property manager or property management experts is highly recommended as they will be able to go through each step of the process and make you aware of the latest legislation which has to be adhered to. A point to note, there are some upcoming changes which will take effect from July 2019, for confirmation of these and to keep up to date, visit this link: https://www.lawsociety.org.nz/news-and-communications/latest-news/news/proposed-changes-to-residential-tenancy-laws-announced Later in the article, we will take a look at some of the possible changes that may take place.
Once you have decided renting is the path for you, there are a great number of personal factors that you have to consider before you take the plunge and visit potential properties.
- The Location
Although this may seem self-explanatory, the location of your property should be one of the most important aspects that you look at. Consider areas such as:
– distance to and from work
– local amenities
– parking facilities availability if required
– local area and whether it suits your needs i.e. if you are a young professional you may not want to move into an area that is established and the majority of the residents are in their senior years.
– how the location may affect your insurance premiums.
If you are a family you may need to consider the local schools. If your children are already in a school, factor in traveling to and from school and if you will need any transport links.
Consider the amount that it will cost you to rent the property and what other costs you may incur as part of this move. There are many fees and deposits that you may require so when doing your budget, be sure to factor these elements in so that you are well prepared of what’s ahead.
When you go to look at a property, try and take a good look at exactly what you are seeing. It is very easy to get carried away with what you see, but make sure it still fits your needs and you can live with how the property will be, as you will not be able to make changes to a rental property. Another point to note is to try and view the property at varying points of the day. This will give you an idea of what the area is like to live in day to day, as well as at night.
The property that you will be moving into will have been appraised by the landlord or the property manager. This will outline areas of the property that are to be kept the same once you leave. See it as a damage report. It also may contain an inventory of the products in the property which you will need to look after.
Above we have mentioned some of the aspects that you may need to consider when renting a property. At this point it is worth mentioning details to consider for those that may want to own a property to rent out. You can obtain lots of information from an investment property management company. They can talk you through your options and help you to get the maximum out of your investment. They will know first-hand how much a property could yield each month and if it is even worth investing in in the first place as not all properties will be popular in the rental market. They will advise you on looking at the demographic of the property that you are looking at. An example of this is if you are wanting to rent to professionals that are hungry for a city life, there is no point in marketing a property that’s in the country to this type of renter as it will not meet their needs. Again, as with tenants, it is vital that you get your knowledge up to date with regards to the legislations and laws of becoming a landlord. Be sure to keep up to date with any future legislation changes too.
As mentioned at the start, there are some posed pending changes to tenancy law. We will now summarise these in a basic manner:
- There is a need to increase the quality of boarding houses. This means the landlords of these properties will now held more responsible than before.
- An improvement in the law to balance responsibility between the landlord and the tenant and to ensure that the home the renter is in feels like theirs.
- Tenants will now have better stability and improved security in their homes whilst at the same time, the landlord’s interests will be also protected.
- The new legislation will also take into account any rental trends that may affect the market. This way both landlords and tenants can benefit from any trending differences.
The above has outlined some basic aspects that you should consider, both from a tenant point of view and from a landlord point of view too. Don’t limit the amount of research that you do as having the best and most up to date information will make your rental property stress free.