5 more things DIY Landlords shouldn’t be doing (hopefully you are not making these rookie mistakes).
- Having working smoke alarms – it is compulsory to have smoke alarms in rental properties. Smoke alarms must be installed within 3 metres of each bedroom door, or in every room where a person sleeps and on each level of a multi-storey building.
All new smoke alarms must be photoelectric, have a battery life of at least eight years, and meet international standards. Landlords must ensure smoke alarms are working at the start of each new tenancy. Best practise is to test smoke alarms at every 3-monthly inspection.
Landlords can be fined up to $4,000 for non-compliance.
- Renting out a non-compliant dwelling – yes, these are the garages that are not approved by the Council to be used as a bedroom. Typically, they are not insulated.
- Doing thorough reference checks – spending some time with basic tenant checks is hugely important. Document reference checks – call current and past landlords, check with the Employer, pay for a credit check. Also check Tenancy Tribunal records and even stalk them on Facebook before you trust your property to someone.
- Undertaking 3 monthly inspections – it’s a good idea to regularly inspect your rental property. Inspections help you check everything’s working well, there’s no damage and your Tenants are keeping things reasonably clean and tidy. And it is an opportunity to discuss issues with the Tenant face-to-face and for them to discuss issues with you, the Landlord.
Use a checklist, take pictures and record dates and findings. The Insurance Company may want the Inspections.
- Reviewing the rent on a regular basis – there are different schools of thought when it comes to rent increases. Some opt for smaller, more frequent increases (say every 6 months) to minimise impacts on the Tenants’ budget, while others go for a larger increase every year, to reduce administration for both parties.
There is no set rule when it comes to rental increases (but legally you have to give 60 days’ notice and can only increase the rent every 180 days).Every property and tenancy situation need to be considered individually. Best to carry out regular rent reviews to ensure you are receiving market rates – check with Tenancy services market rents and Trademe property ads.
OK, so some of these are basic, but if you have done or doing more than 2 – you better call me for a no obligation chat.
Regards
Tony Smith Director Quinovic Greenlane – [email protected] or 021 931 081
