101 Handy Hints

[muppet]

Hi Guys

Bought a copy of Residential Landlording for the Absolute Beginner by Harry Lawson the other day.
Harry is one of the Wise Men along with Glenn who writes a column for the KPI Magazine.

Some good reading. Best Chapter is entitled 101 plus ways to ensure success.

I will type up 10 or so ways each day or so.

1-10 They are in no particular order of importance. Read them and think about what you do.

Always charge market rents for new tenants.

Never let property in less than spotless condition, no matter how busy you are.

Don't let a property you or your family would not live in.

Avoid renting to friends and family. If you do, charge market rents and keep everything on a business footing.

Carry out promptly all requests from tenants for repairs.

Learn the difference between tenants' wants and needs.

Never put cheap, low grade loop pile carpet in lounge rooms and hallways.

Always use commercial rubber underlay and avoid plain-coloured carpet(white is a no-no!)

Ensure that your properties comply with ALL council bylaws. (Harry is a Napier City Councillor)

Always remember who really pays your rates, mortgages etc.

More later

Regards

[fudosan]

Hi muppet,

I'll be glad to help you out with the rest of the tips, if there is no copyright problem. Have you checked with Harry?

[muppet]

Hi Guys

Had a chat with Harry Lawson today and he is happy for those 101 Helpful Hints to be posted.

Will start again next week when I get back home.

Regards

[fudosan]

Hi muppet,

Had a chat with Harry Lawson today and he is happy for those 101 Helpful Hints to be posted.

Excellent! Unfortunately I'm in the middle of an important job and won't be free for the next few days. I'll be glad to help and will let you know when I can. Keep it up your good work.

[fudosan]

Hi muppet,

Here's hints 11-20.

Acknowledge your good tenants at Christmas (but not by giving them rent increases.)

Avoid increasing rents in the first two years of tenancies.

If a tenant is taking particularly good care of your property, say so, and even better, encourage them by providing paint, extra plants, etc.

Have a firm handshake.

Drive an inexpensive car, but own the best property you can afford.

Never pay for work before it is completed.

Unless there's prior notification, never let rent fall into arrears.

Make face to face contact with your tenants at least once every six months.

Should any problem arise, sort it out immediately.

Complaints from neighbours should be acted upon, BUT MAKE SURE THEY ARE REASONABLE.

[muppet]

Hi Guys

Here is Part Three of Harry Lawson’s 101 plus ways to ensure success.

Use the Tenancy Division of the Min of Housing to deal with difficulties with tenants, but always try to settle first by mediation.

When letting a property, ensure all money due including the bond, is paid before occupancy.

Depending on the length of tenancies, try to shampoo the carpets once every two years.

Wash all curtains in your rental property between tenancies.

Have a programme of maintenance such as cleaning out spouting twice a year.

Keep a tap wrench, washers and PVA glue handy in your car.

Be friendly and courteous with your tenants, but avoid becoming friends (at least during the term of the tenancy.)

Avoid wasting time and energy chasing long-gone tenants for a few dollars.

Should something go seriously wrong with a tenancy, ensure you always have a witness and well documented evidence for a Tribunal hearing.

If you use letting agencies for finding tenants phone, and inform them all when the property is tenanted.

Regards

[fudosan]

Part Four of Harry Lawson’s 101 plus ways to ensure success.

If the property is for sale, respect the tenants' rights during viewing by prospective purchasers - and always acknowledge co-operation by tenants.

Never allow yourself to be intimidated by an unpleasant tenant.

Don't arrive at your properties to deal with tenants in a BMW or Mercedes.

Keep a master key to all your properties.

Under a normal tenancy that's going OK, never enter a property without the tenant's consent or knowledge.

Always take a deposit at the time of selection of a tenant.

Treat your tenants as customers.

In the case of a tenant informing you in advance that they will be unable to pay the next rent, be sympathetic but ensure any arrangements are strictly adhered to.

Try to remember tenants' names.

Never budget for 52 week occupancy every year on ALL property.

[murray-spi-investments]

Dear Muppet and Fudosan

why not just scan it in and see if Marc can keep it as a file for people to download?

[muppet]

Hi Murray

If I scan it in then I won't be able to practice my typing skills.

Regards

[Marc]

Dear Muppet and Fudosan

why not just scan it in and see if Marc can keep it as a file for people to download?

Hey! I can make it Article of the Week! I just need the full 'story' in a word document or text file.

Cheers

Marc

[fudosan]

Hi Murray,

I have given away my scanner years ago and have gone low tech instead. Typing allows me to think.

[muppet]

Hi Guys

Scanners aren't so bad after all.

On selecting tenants, be aware of the discrimination laws (see Residential Tenancies Act, Human Rights Act etc.)

Don’t talk about property with those who have none.

Hire people who are smarter than you.

Avoid taking advice from those who have nothing to lose.

When paying cash, ask for a discount. Remember, a deal is not done till the cheque is cleared by the bank.

Pay all tradesmen promptly.

Honour all promises made to your financiers with a margin to spare.

Welcome new tenants with some flowers or a bottle of wine and a card that tells them about milk deliveries, rubbish day, neighbours names etc.

Avoid borrowing from family and friends (there are, of course, exceptions.)

If you can’t keep your commitments to your bank, tell them as soon as possible.

Talk to your bank manager at least every six to nine months (not only when things go wrong) to keep him’ or her informed.

Always keep a cash reserve for unexpected setbacks or opportunities.

Always listen to advice - you don’t necessarily have to heed it.

Build in a 15% to 20% margin on all financial planning. It’s better to have it and not need it, than to need it and not have it.

Try to work towards 60% gearing or less. If possible, use interest-only funding.

Don’t have more than two credit cards.

Be wary of people who tell you how honest they are.

Once in a while, push your luck.

Get your priorities right. I know of no-one on their death bed who wished they had spent more time working on their properties.

Avoid telling friends who do not have property how much you’ve got. (I’m often asked by cheeky people who should know better, and my standard response is: “More than two and a hell of a lot less than 20.”

Regards

[muppet]

Hi Guys

Have a long term goal in mind.

Pay everyone you owe money to on time.

Explain to your partner your full financial arrangements.

Always spend less than you earn every week.

Spend 5% of gross rents on repairs and maintenance.

Strive to have a good, honest, long-term arrangement with a reliable carpenter, plumber, electrician and other tradesmen.

Never paint a galvanised steel roof.

Clean your chimneys once a year.

Don’t scrimp on essentials.

Paint the exterior of your property at least once every eight years.

Read property books and adapt suggestions to your circumstances.

Don’t think a higher price means better quality.

Do business with those who do business with you.

Regards

[RodC]

Hi muppet,

These are great, most of them really are common sense. I'm not sure about NZ, but common sense seems to be something which has gone missing in a lot of Australian society.

regards,

Rod.

[muppet]

Hi Guys

Thanks for that Rod. Yes I agree they are common sense but it is good to have a read of them from time to time to refresh ourselves in what our business is.

Here is the next lot from Harry Lawson's book.

Don’t flaunt your success, but don’t apologise for it either.

Don’t procrastinate - do what needs to be done
when it needs to be done.

If you have a good lawyer, stick with him or her.

Organise your insurance through a broker.

Don’t waste money over-insuring your property.

If you under-insure your property, be fully aware of the advantages and risks.

Avoid buying unwanted life insurance in connection with a funding proposal.

Never get yourself into a position where you are forced to sell.

On a property deal, try to ensure both parties are happy with the outcome.

Never let your fairness be mistaken for foolishness.

If you make a great financial success out of property, don’t neglect friends and relatives.

It’s not where you end up that counts - it’s remembering where you came from.

Explore new ways of keeping motivated.

Regards