RIVERSTONE PROPERTY SERVICES
WHAT COSTS SHOULD YOU BE PREPARED FOR?
The rental business does not come without certain costs. First and foremost, a property needs to be maintained. This can include but is not limited to repainting, replacing appliances, pruning trees, spraying for pests, repairing a wide variety of components, replacing smoke alarms to name just a few. You will also need to keep up to date with any changing government regulations around maintenance and insulation (for example).
HOW MUCH RENT CAN I GET?
For the most part, the market determines the rental rates obtainable. The condition of your property also affects the obtainable rent. The market is also affected from time to time by waning demand, over-supply, seasonal fluctuations, and timing.
CAN I RAISE THE RENT?
Yes, you can raise the rent subject to the requirements under the Residential Tenancies Act 1986. The rent cannot be increased more than once every 360 day.
WHEN AM I PAID THE RENT FROM MY TENANTS?
All rent received on your behalf are held in our trust account. From the rent collected we pay all authorised payments relating to your property eg repairs and maintenance and deduct our commission. Invoices are sent to you with your next statement. We electronically transfer your funds into your nominated financial account within 3 business days of receiving the rent.
DO YOU DO AN INSPECTION PRIOR TO DOING THE TENANCY AGREEMENT?
The tenancy inspection and agreement are usually done at the property with the tenant. The agreement is completed and a copy is given to the tenant. A joint inspection of the property forms part of the tenancy agreement and allows for any defects to be noted.
HOW LONG WILL IT TAKE TO FIND A TENANT?
This depends a lot on the market and the time of year. However, it will definitely help if your property is well presented inside and out, clean, tastefully decorated and the lawns are mowed and the grounds are well presented.
IS IT A GOOD INVESTMENT TO SPEND MONEY ON INSULATION?
Having an insulated house reduces the number of tenants leaving after a cold winter, saving you advertising and vacancy costs.
Insulation statements are compulsory on all tenancy agreements signed since 1 July 2016. The landlord must disclose whether there is insulation in the rental home, where it is, what type and what condition it is in, so tenants can make an informed decision about the property they are renting.
Ceiling and underfloor insulation will be compulsory in all rental homes from 1 July 2019 where it is reasonably practicable to install. The insulation must comply with the regulations and be safely installed.
DO WE HAVE TO DECLARE ANY INCOME ON A RENTAL PROPERTY?
Yes, all rent received are income and need to be declared. You can claim a tax rebate for such things as maintenance costs, management fees, interest on mortgages and depreciation. As Riverstone are not tax experts, we recommend that clients get independent financial and taxation advice.
WHAT ACTION DOES RIVERSTONE TAKE FOR RENT ARREARS?
Riverstone has a zero tolerance policy for rent arrears. Our system monitors rent payments on a daily basis and as soon as the rent is missed, contact is made via text message, email or phone call to notify the tenant of a missed payment.
If the tenant fails to pay the rent after 3 days or a satisfactory agreement is not reached, a 14-day notice is issued. If no action is taken after the notice we will utilise all legal tools available to us via Tenancy Services and follow up with a debt collections agency.
WILL I LOSE CONTROL OF MY PROPERTY IF RIVERSTONE MANAGES IT?
You can have as little or as much involvement in your property as you wish. You can choose to carry out all your own maintenance and/or use your own tradespeople.
WHAT IF I WANT TO SELL OR MOVE BACK INTO MY PROPERTY?
Under the Residential Tenancies Act 1986, you are required to give 42 days notice of your intention to move back into the property if the tenants are on a periodic tenancy (same applies if the property is sold).
Legally neither party can break a fixed term tenancy.
HOW MUCH NOTICE IS REQUIRED FOR AN INSPECTION?
48 hours notice in writing must be given before an inspection. Inspections can only be conducted between 8am and 7pm unless otherwise agreed between the landlord and the tenant.
DO I HAVE TO SIGN A CONTRACT WITH RIVERSTONE?
Yes, we do request an initial commitment of twelve calendar months from each landlord.