Recommendation for rent review improves ROI for investor

If you’re investing in property, you want to know your investment is operating to its full potential.

When Lodge City Rentals’ client, Mr Singh, asked property manager Julia Waugh and the team to manage his newly purchased investment property, the company started by ensuring he was getting the most out of his investment.

The background

Upon purchasing a block of six one-bedroom units in Hillcrest, Mr Singh asked Lodge City Rentals to manage the property on his behalf.

The property had been managed by the previous owner, but when Mr Singh purchased it, the complex was under-rented and underperforming.

“This often happens when properties are privately managed, particularly if the tenants have been there for a long time,” explains Julia. “Lodge City Rentals will regularly review properties we’re managing to make sure they are returning the right rent for the owner.”

The challenge

Julia says her first task was undertaking a rent review. “We wanted to establish what the rent should be, to bring it in line with the current market. We do this for all new properties we manage,” she explains.

“Mr Singh was keen to keep the tenants who had all lived there for a long time, so we suggested the rent was increased in two instalments six months apart, to make it more manageable for them.”

Julia and the team then contacted the six different tenancies in person to let them know there had been a change in property management, and the rent would be increasing.

“When we take over the management of properties from private owners or other companies, we always endeavour to visit the tenants to introduce ourselves, give them the details for setting up automatic payments, and make sure they know who to contact for maintenance,” says Julia.

All of Mr Singh’s tenants responded well to the phased rent increase and all chose to stay.

The outcome

“Mr Singh appreciated our feedback and advice,” says Julia. “Having really good tenants, and knowing they are being treated well, is really important to him.

The complex is now performing well.

 

“Lodge City Rentals will regularly review properties we’re managing to make sure they are returning the right rent.”

 

Julia Waugh

P: 07 959 0040

M: 021 990 953

E: juliaw@lodge.co.nz

www.lodgerentals.co.nz

PROTECT YOUR INVESTMENT