What will a tenant want in a new house?

[Gibbonz]

With our butt glued in the Manawatu at this time, we have purchased a section will build a new house for rent. This site is in a 10 year old area, with great views of the ranges and the City (a bit rare in flat ole Palmy Nth). There is no restriction on the type of home brick and roof colour, size etc that there is with the new subdivisions. This will allow us to build "down" outside but provide some "rentme" things inside, like a spa bath and heat pump/ air conditioning.

Has anyone got some experience along these lines? I feel that 4 bedrooms 2 bathrooms are what are in short supply.
By building this house ourselves, creating equity this will be cashflow positive.

AND it keeps me out of trouble while we see what is going to happen with the market in NZ.

Look forward to some feedback

Cheers

[The_Dog]

I've heard that spa pools (pools in general) are dubious. They don't appeal to everyone, and can be an expensive toy that you will end up maintaining. I'm sure tenants won't be as diligent as yourself with cleaning chlorination etc etc, leading to mosquito’s, malaria, bird flu, indigestion and the mumps. Where will it all stop?

[drelly]

Spa baths are a good idea but forget spa pools. They cost $60-80 a month in electricity and then there's the chemicals. If the tenant doesn't look after it, they can easily make themselves sick or wreck the motor.

cheers,
Dave.

[muppet]

Hi Gibbonz

Also make sure you put in a good whiteware package.

This can command a higher rental and also a better quality type of tenant.

Regards

[whitt]

*Why not design in the 4th bedroom as a bedroom/ office for those who want to work from home. Place it near front door for clients and delivery too.
*Of course double internal access garage is a must.
*And so is good size bedrooms.
*Low maintenance gardens.

I think you need to work out your target demographic first for the area. Ring a few property managers they will know what tenants like for area and are paying for.That way you can build with a certain rent bracket in mind. No point building a rental with all mod cons @ eg. $500PW when the demand in the area is $400PW

[muppet]

Hi Whitt

You said:

No point building a rental with all mod cons @ eg. $500PW when the demand in the area is $400PW

But by putting these things in you are aiming to raise the level of the area.

Have a talk to Terry Kendrick.

http://www.mrtwi.co.nz

He spoke to the Rotorua PIA last Tuesday. Most interesting about what he had to say.

Regards

[whitt]

But by putting these things in you are aiming to raise the level of the area.

Not sure about the area at question. Spending too much compared to surrounding houses will overcapitilise. These things are minimum standards for a new rental house now.

Why build a expensive house and need high rents when that may not be the demographic for area. You need to work out your target rent then calculate backwards till you get a build budget.

[CJ]

I have heard that even spa baths are dubious (ie the big ones) as the empty the hot water cylinder to fill and how many people have time to bath anymore??? Just a normal bath for those with kids.

[whitt]

*Storage space too. somewhere to put bikes, lawnmower etc
*Off street parking

[Fritz]

"down" outside but provide some "rentme" things inside, like a spa bath and heat pump/ air conditioning.
Cheers

Gibbonz,

we build and rent, but mostly in the bottom half market. Check out your surrounding area, we have found there is such a thing as a value ceiling in every street (ie there is no house over 220K in most our streets and gold plated hand rails will not get you there either, but also more importantly there is also a RENT CEILING in most streets/areas, ie that en-suite will not get you past the $300 a week if the rest of the street is a train wreck and averaging $240 a week. Check around what is there and where you see the area going.

I would question how much return you get on your spa pool, swimming pool and other frills unless you are in the top quarter of the market.

We have found:

- bath is good for families (shower over bath or if you want to have a seperate shower)

- built in wardrobes in every room and plenty of cupboard space in hallways

- functional but basic kitchen with plenty of cupboards

- garage inbuilt or out but put power into it, single is fine, double is better.

- seperate laundry

- simple low fuss garden

- well fenced and secure

- we only build 12mm ply on outside board and batten, no painting required, looks good

- if you build a fourth bedroom,always make them big enough to easily take 2 single beds for re-sale value

- have bathrooms and plumbing close together if you go for en-suite

- building plans are a big cost, buy someones plans who has a proven track record and COSTINGS for these plans ie Kerry Christiansen
http://www.hotpropertynz.com I highly recommend. Most people take off and design these amazing things and there is $5000 for your architect before you start, and costs are away with the ferries. Keep it simple, we almost only build to 1.2m x 2.4m for length and width so there is no wastage. Roof lines as simple as possible.

- Alternatively check out kitsets built off site and trucked in or buy and erect, they have done houndreds of them and have it down pat. 50K for a kitted out 4 Bedroom 101 sqm house (no carpet, no concrete pad) , these guys make some great houses:

http://a1homes.co.nz/

- decks are cheap, look great, and tenants like them, they add great value.

- consider a legally permitted home and income dwelling ie granny flat/house which you are permitted to rent to 2 parties with seperate power meters if your land area and regulations permits you to build it, do it.

Happy to talk to you. We have done it.

Fritz.

[Kiwi_Investor]

We have a large number of 4 br houses being built in our Suburb near the Gold Coast. I believe they are mostly aimed at families as tenants. They all have good wardrobes, the masters have, walk in robes and en suites, which is standard here. I think some kind of outdoor area would be a plus, but not too over the top.

Fritz had it nailed mostly, good post Fritz, have just done a duplex with much the same inclusions as you have suggested Fritz.

KI