Apartment Specialists Podcast No: 32
When renting your Auckland apartment, there are factors that you have to consider like apartment presentation, terms and duration of rent and who your tenants will be. It is important to get it right so that you raise the value of the rent thereby raising the value of your apartment.
Andrew Murray from Apartment Specialists. Renting your Auckland apartment.
Now, this is done so badly in this industry. It is done badly by rental agents and people who are actually renting privately. And that is really, really, frustrating for me because when I come to sell an apartment that was under rented it effects the value hugely.
Now I don’t just mean if you’ve got a shoe box apartment or your apartment is a student apartment – or even if it’s an owner-occupier apartment or a very large apartment. Because if the rent is not getting – not what it should be – then I have to fix the value. I have a lot of international buyers who still buy very, very large apartments. And there are one or two who are looking for a capital gain. They are looking for all kinds of criteria that are different. And the returns they expect are so much different than the local market.
So there are still methods across the board. So what can – how can – I was thinking how can I help you guys sort of – give you a few tips in regards to getting this right. Now first of all, there are some things you would not actually think affects renting your apartment. A big thing is – a big misconception – is that you’ve got to furnish your apartment. Most owners think – it is better that you have your apartment with no furniture because most tenants turn up with their furniture. That is not actually the case.
There are so many international people – people from different cultures – you’ve got people who are just not going to lag around bringing furniture up to the 14th floor or 4th floor or where ever the apartment may be. What if the furniture does not fit in the apartment? A furnished apartment always gets more rent. And it always increases the value of the apartment.
Now I don’t mean you’ve got to buy the best of the best. You buy something that looks good. You can do a Kmart or Warehouse job. They have great and very durable furniture in there. I wished we had Ikea here – it would be perfect. When I went to the States and Australia that’s what they all use.
Furnish your apartment. It’s all about presentation. Get a professional photographer. Even if your rental agent doesn’t suggest this, you suggest it. There’s a guy I can use, flip me an email. It will cost you about $150 to 230 plus GST which is virtually nothing. It will put your apartment above all the rest.
The third one is how you rent your apartment at the time of the year. Okay, you want to be renting your apartment – if you can – for a year, from the time it is at the peak. So for example your peak rental period is the end of January through to the end of march. So you want to be renting your apartment each year at that time. If not, you know – have a long tenancy – that’s two to three years. Okay, So maybe if your apartment is out of sync with that you want maybe to fix a tenancy that matches up with that period. Maybe a four month fix now or something like that. So it comes into that period. Now that is very, very crucial. So ask your rental agent or flip me an email and I can explain it down further to you.
Now another one is your type of tenant. Now it’s not about being racist. It’s not about being you know fussy – either of those. Okay so who do you want into your apartment? Would you live with these people? Would you have them in your house as guests? And It’s not about being discriminant. It’s about who is going to look after your apartment. What demographic are you looking for? So, advertise through that demographic. So even if you are in a student complex – you can still go for a young couple – or something like that. It is all about the choices you make when looking into the applications. You don’t have to give your reasons. But make sure you do background checks. Make sure your agent does background checks. And you see those checks – so that you can make a choice for yourself.
And another one is if you are going to a rental agent, which I would advice, keep them accountable. Ask them what they do – what they do for the fee they charge you. Okay now there are so many rental agents out there. There’s hundreds of them and only a few who are really good ones. And I’ve recommended a lot of different apartment agents. Some have let me down which has been disappointing because it’s been a reflection on me. I don’t do rentals myself but I can happily refer you to some of the good ones out there. If you want me to flip me an email to email@example.com and I can get you in touch and give you the advice that you need. But make sure you get the right rent for your apartment not just for you – not just for me when I come to sell it – but because you should be.
Thanks for that. Next time I’ll be talking about – if you choose to sell to your apartment and you get tenants – what happens to those tenants? Are you worried that they are going to leave? Are you worried that they stop paying their rent? What happens to the sales price and what should be happening and – how would you ensure that that’s not even a concern.