I always dreaded tenants moving out. I had to conduct the final inspection to determine what needed to be fixed, cleaned or taken out of the bond. The worst part was the disagreements with the tenants. It didn’t take me long to realise a good condition report meant less disagreements and a well left property.
Way to go! You’ve placed your ad, held the inspections, received and screened the applications and finally chosen some great tenants. So what’s next? There are some important things to accomplish before you can hand over the keys. Setting the stage now, before your new tenants move into your property, is incredibly important to get right.
After all the hard work of advertising your property, holding inspections, screening tenants and getting the lease signed, it is hard to imagine why you would want to give your tenants a Notice to Vacate. However, I can say from experience that reasons do come up.
If you are ever faced with a hearing at tenancy tribunal, the first thing is to be sure that you are in the right. However, right or wrong, quite often the tribunal will side with whomever can produce the most accurate and relevant documentation to back up their case.
It is a great feeling to have your rental property occupied by great tenants, knowing that you are getting a return on your investment and the house is well looked after. That is, until you need them to move out.
There could be any number of reasons that you need to have your property vacant. Perhaps you want to sell the property without tenants because you don’t want to limit your market to just investors. Maybe you unexpectedly have to move back into the property. Whatever the reason, it is your property, and if you want your tenants gone they should leave, right?
Unfortunately some tenants believe that a rent increase is a kick in the guts after all the hard work they’ve done to keep the property in good condition and always paying the rent on time. But the honest truth is, it’s just apart of living. Everything goes up.
The trick is to provide them value and reason to keep living in your property. Let me show you how.
If you ask your tenants when it would be a good time to increase the rent, they are likely to tell you there is not a good time. That is understandable. What would you tell the guy at the corner petrol station if he asked when would be a good time to raise the price of filling your tank?
There is no magic time of year to increase the rent that your tenants will be happy with. So you might ask “When should i do a rent increase?” No matter when you send the notice, there is always a possibility they could look at moving out. However the trick is minimise that possibility as much as you can, and I’ll tell you how..
My friend Kylie is a busy lady. Between a successful career and a growing family she barely has time for herself, let alone friends. So I was surprised and pleased the other day when she called to invite me for a coffee.
She and her husband Tom recently bought a second house as their first investment property. Now they are ready to see some return on their investment, so she came to me looking for some guidance for self managing their property.
1. Failing to Ask for a Bond
This is a security deposit held in case your tenant doesn’t meet their obligations under the lease agreement.
2. Not Having a Lease Agreement
This is a legally enforceable contract that details the length of the lease, rent amount, and the condition the tenant should leave the property as stated in the condition report.Typically if you are managing a rental property on your own, you may only have the option of purchasing a generic lease agreement from your local news agency or online. The problem with these generic forms is the lack of important information, like state and territory laws particular to your area. We have free state specific templates for you right here.
It is every property owner’s wish to find and keep the best possible tenants for their property. Finding tenants is one thing, making them stay is another. Keeping your tenants for the long haul is just as challenging and important as finding them. Why? Well first of all it costs you about a thousand dollars or more every time your tenants move out because of the advertising costs of finding a new tenant and the loss of rent while the property is vacant. It also spares you the stress involved during vacancy and the tedious process of trying to find suitable tenants.