Property prices in Wellington continue to rise, surpassing other places in New Zealand where prices have started to simmer. With the high demand and low supply of houses, you would be wise to invest in a property and offer it for rent. If this is your first time venturing into real estate entrepreneurship, you will need a couple of reminders:
Consult a Lawyer
Some properties are up to code and can be offered as a rental, but others may not be in compliance. Your mortgage could also have a say in whether you can start offering the property for rent. When in doubt, or even if you are fairly sure, Rainey Collins Lawyers recommends double-checking with a property lawyer. There’s nothing to lose anyway when you’re simply making sure. This is better than deciding things for yourself and having to contact an attorney later on when you are in hot water.
The terms of a contract can be changed according to what the property owner deems appropriate. Don’t do this in the middle of a contract term, however, as that will earn you a bad reputation and could put you on the receiving end of a lawsuit. If you are considering an increase in rent prices, be just about it. A jump from $800 to $1200 effective upon renewing a contract would certainly be a big burden to a family.
Know Your Tenants
It falls under your responsibility to know whether your tenant is capable of making monthly payments. Though you get a deposit when they move in, you want a steady flow of income every month, and preferably no headaches. It’s also important to separate the bad tenants from the good. Bad tenants can start trouble in the middle of the night and inconvenience everyone in the vicinity. You do not want to be dealing with those kinds of people.
The need for houses and lack of properties to address the demand can work in your favour. Offer your property for rent and reap the rewards, but don’t forget to be fair.