Renting out my house
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| 1 | I am looking at renting out my house out, and getting a property manager to take care of it, I know I will need to get Insurance for a rental, what other things do I need to do or look into, ie Accountant? as I really don’t understand all the legal stuff, ie tax, separate bank account for the rental, any suggestions as this is all very new and scary to me. TIA Edited by jordani at 12:50 pm, Thu 30 Sep jordani - 2021-09-30 12:46:00 |
| 2 | Healthy Homes compliance - there are a number of companies around that can check and give you a detailed report. The PM will be able to walk you through a lot of this. pcle - 2021-09-30 12:50:00 |
| 3 | There really isn't much accounting to do any more. pcle - 2021-09-30 12:56:00 |
| 4 | While you are getting yourself all prepared as to the legal , accounting, PM stuff... also put some time into getting yourself "mentally" prepared to be a landlord.. the possible heart ache, disappointment associated with your formerly nice home now in the hands of strangers... onl_148 - 2021-09-30 13:12:00 |
| 5 | Get a healthy homes check as even some new built homes do not comply with the rentail requirements . martin11 - 2021-09-30 13:34:00 |
| 6 | onl_148 wrote: lol payntr - 2021-09-30 14:28:00 |
| 7 | payntr wrote: onl_148 makes a very valid point. The damage caused by tenants is a huge expense. And the tenancy laws are a total joke. pcle - 2021-09-30 15:06:00 |
| 8 | If you live in the same city, go with the Property manager when they do the 3 monthly inspections. That way you can see for yourself if the property is being properly managed. vomo2 - 2021-09-30 22:54:00 |
| 9 | Is the healthy homes compulsory or just something that is recommended and how often should it be done? jordani - 2021-10-01 00:12:00 |
| 10 | And if there's any maintenance required,get the property manager to run it past you 1st. m16d - 2021-10-01 07:16:00 |
| 11 | There is a standard now which most rentals will have to comply with, I'ts easy stuff, like bathroom extract, heating requirement, underfloor insulation, kitchen exhaust, check out the online sites best to do. Tax well you pay on your income, a few things you can claim, also the bright line test may come into play when you sell as this won't be your main home?. We rent my mums house, for the last 10 years, same tenant, no property manager, no problems, rent is slightly lower, etc, we are lucky, some tenants may not be so good. Talk to a real estate agent, houses that are good to rent are the older houses in a good position, ie you are looking for land prices to rise, the house is worth a tiny proportion. But hey, each to their own. msigg - 2021-10-01 07:20:00 |
| 12 | Check your curtains. If you have curtains that you are particularly keen on remove them, store them and get some replacements either from The Warehouse or Spotlight or from secondhand curtain sellers.. Our rentals have a condition re ventilating rooms and also limits on the number of vehicles, no parking on the grass, no vehicle parts unless in a shed. If you have access via a door to underneath the house then lock this as it may be filled iwth boxes and other rubbish. If the tenant is responsible for the mowing specify where you want the grass clippings put otherwise you may come back to find them put all around and smothering shrubs. Some tenants just will not use a bathroom extractor fan. You can get the fan wired to the light so it comes on when the light comes on......most people don't like showering in the dark. shanreagh - 2021-10-01 09:31:00 |
| 13 | Shower domes also work well for keeping moisture and mould away. pcle - 2021-10-01 10:29:00 |
| 14 | jordani wrote: https://www.tenancy.govt.nz/healthy-homes/about-the-healthy- Edited by sarahb5 at 10:54 am, Fri 1 Oct sarahb5 - 2021-10-01 10:52:00 |
| 15 | Can I ask why you want to rent it out? So young intend to return to it? sparkychap - 2021-10-01 11:10:00 |
| 16 | Sounds like a whole lot of pain. leson - 2021-10-01 11:11:00 |
| 17 | Lots of landlords are getting out of rentals because of the problems . martin11 - 2021-10-01 11:18:00 |
| 18 | shanreagh wrote: sarahb5 - 2021-10-01 11:25:00 |
| 19 | Leave it empty. Much easier and costs about the same. pcle - 2021-10-01 11:42:00 |
| 20 | sparkychap wrote: None of your business - or anybody elses. Maybe OP is intending to go overseas on a longer sabbatical and doesn't want to be looking for somewhere to stay after they finish MIQ on return in 5/10/15yrs time. brouser3 - 2021-10-01 13:23:00 |
| 21 | sarahb5 wrote: Agree - easier to have no gardens, easy care lawn and get a contractor on a regular basis and intergrating the cost into the total rental. brouser3 - 2021-10-01 13:25:00 |
| 22 | leson wrote: Where do you make 'money' unless one is suckered into sharesies or goes crypto mining. Both quite high risk IMO. Sometimes a bird in the hand is worth 2 in a tree ie a house on a section is worth more than a heap of plastic cards. brouser3 - 2021-10-01 13:27:00 |
| 23 | brouser3 wrote: Perhaps, but there's a number of areas where advice can be dependent on the answer to this question. sparkychap - 2021-10-01 13:57:00 |
| 24 | The house next door to me sold for $1.3 MILLION.The buyer didn't want the trouble of tenants so it is empty for over 2 years now.He said the land value goes up all the time.The lawn gets cut sometimes but the gardens are overgrown.Looks abandoned from the street. boby11 - 2021-10-01 14:40:00 |
| 25 | sarahb5 wrote:
Yes that is true and we have done this too. Lawns are often done by tenants and that was the point of my tip to make sure that the LL specifies where the clippings are to go. shanreagh - 2021-10-01 15:06:00 |
| 26 | Also check in with your PM every now and then..Don't be one of 'those" LL's who just sit back and think "PM will sort everything...the money will come rolling in... lefty1234 - 2021-10-01 17:58:00 |
| 27 | lefty1234 wrote: sarahb5 - 2021-10-01 18:27:00 |
| 28 | HHS. Minimum requirements for ceiling and underfloor insulation. Ground vapour barrier. Exterior vented rangehood and bathroom extractor fans, with a minimum 150mm dia ducting. Thermostatically controlled heating device, measured to the size of area it has to heat. Install a smaller 1 and you will have to replace it.Open fires count as nil, but logburners are allowed. Opening windows in all living areas to allow 5% ventilation. All downpipes connected to council stormwater.No gaps around windows, doors.There, simple.You have 90 days to comply with all this once the rental starts. Get a PM that does 3mthly inspections and takes photos of every area.You have to prove the tnt has done any damage, to recoup any costs, so about 100 photos per property.If it can be damaged, photograph it. blueviking - 2021-10-02 08:56:00 |
| 29 | blueviking wrote: sarahb5 - 2021-10-02 09:21:00 |
| 30 | I would also stipulate on the tenancy agreement how many adults/children can reside in the home. I have had the initial 2 people and 1 child move in then a couple of months later the 'extended' family are liviing there too. pauline999 - 2021-10-03 17:26:00 |
| 31 | All of the above. Check with your insurance company. You can probably leave your insurance policy as is with the note that the house is tenanted, but that won't cover you for tenant-related damage. Specific tenancy insurance will give you more cover but will likely have requirements for inspections and documentation. A good property manager will take care of it properly, but good property managers are a bit like good tenants - some are great and some leave a lot to be desired. It could be a good move to go along to your local Property Investors Assn as a starting point. raewyn2 - 2021-10-03 19:08:00 |
| 32 | What I found was that 3 months after moving in your rules and expectations started to change.Two occupants became three then a new boyfriend moved in with his dog and what did the high profile property manager do?,stuff all, so another rental bit the dust and was sold to young family. hammer23 - 2021-10-04 00:54:00 |
| 33 | hammer23 wrote: we found out our tenant had moved their boyfriend in when my husband was doing some work there and their toddler was pointing out who slept in each room. annie17111 - 2021-10-04 07:48:00 |
| 34 | As a landlord I would be VERY reluctant to rent out my own house. We have had rentals for quite a few years and generally speaking have been lucky. However we have had a meth house, a tinny house, damage with physical violence, people not paying their rent, and yes tenants moving extra people in.Our rentals in Whangarei have been the main probs. Made te mistake of buying in a wrong area not knowing the city very well. We sold two of them very quickly because of this and the inability to get stable tenants. With the advent of the new tenancy rules, it is VERY difficult to get rid of problem tenants and we did consider selling up. However at the present time we have stable tenants in the one remaining Whangarei property and the one in Ak.and very competent PM's Your insurance company would possibly not cover you. The only rental-wise company we know is Initio. They also cover insurance on bachs. Cappricorngirl mlarkin - 2021-10-05 09:30:00 |
| 35 | I also wouldn’t rent my home out. I also wouldn’t buy a rental next to my home. I think you get attached to your home. Tenants even good ones don’t look after places as well as you do yourself. We found no one ever mowed the lawns or did the gardens/weeding. So we have a lawn contractor and a gardener. No matter how good your selection process is you will inevitably get dud tenants. As I’ve mentioned we’ve got one lot currently like this. My husband was going to trim a large tree. The tenants got very annoyed as they planned to install a veggie garden under the tree. Of course this isn’t what makes them duds, that’s a whole encyclopaedia. It does show how tenants *sometimes think*. Thing is too, the duds take up an inordinate amount of time and it’s easy to forget that 95% of tenants are no problem and pay rent weekly without being reminded. The 95% also look after the property and let you know if there are any issues. princess52 - 2021-10-05 17:34:00 |
| 36 | We’ve also had a tinny house and bought a tinny house. The second one, people kept turning up while we were there renovating. The cops turned up a few times. The one that turned into a tinny house, they sold all the whiteware and left owing us money. One of them is pretty high up in the Unions now. We’ve had mental health clients as tenants. One was up a tree with a machete and the police helicopter overhead. One gorgeous place was a brothel TWICE, had a junkie tenant who stole anything not nailed down. Then we had a mental health client who put everything moveable in the back of the house and was standing in the middle of the road. I rang the crisis team and was told there wasn’t one that evening. I said “the guy is in the middle of the road and it’s getting dark”. I didn’t tell them it was a cul-de-sac…. princess52 - 2021-10-05 17:40:00 |
