Damned if I do, damned if I don't?

[sidinz]

After hearing tales of Rotorua's strong presence, the inter-connectedness of various whanau and the fact that I'll be an absentee landlord, I thought it politic to introduce myself to the closest neighbour (who can see cars coming and going) as soon as I arrived on site to start the renovations.

Only it turns out that she has a niece who's been looking for a rental in the area for months and who's really keen to rent my place when it's finished. She came to see me this weekend and in conversation informed me that several of the adjoining properties are occupied by members of her whanau, too.

She's so keen that she's willing to move in once the place is habitable and was talking about arranging her sparky father to work for me and putting posts on a local FB page to find me a builder. She also mentioned the possibility of a family working bee to get the garden sorted.

At this stage it's just her and her partner. Apparently she teaches at the school across the road and he's some sort of farm worker.

From where I'm sitting, this could work brilliantly, or it could be a ticking time bomb. Yet I also feel that rejecting her could also bite me in the bum, property as it is, surrounded by her network.

Thoughts?

[Wayne]

Do the usual checks and if they pass then does it matter that they are all related?
I'd be careful about getting working bees etc - you start to lose control.

[artemis]

Is there a shortage of rentals in the area? A teacher with an employed partner and no children (yet) would usually be high on a list of suitable applicants. I wonder why she has been looking for months.

Might be worth a discreet drive by other rellies places if you can identify them. See what the houses look like.

Will you be using a local PM? They might have a view.

[sidinz]

Yes, there is a dire shortage of rentals in Rotorua. Very long waiting lists with the PMs and lots of people desperate for a house.

I won't be using a PM, no. I had thought of using one as a letting agent, but now I'm not sure as there are even FB pages for Rotorua rentals.

[Anthonyacat]

Yes, there is a dire shortage of rentals in Rotorua. Very long waiting lists with the PMs and lots of people desperate for a house.

I won't be using a PM, no. I had thought of using one as a letting agent, but now I'm not sure as there are even FB pages for Rotorua rentals.

By the sounds of it you don't live locally - so how are you going to manage it without a PM?

I'd seriously consider signing up with a good PM in the area, at least for 3-6 months. With a lot of local knowledge the good ones are well worth their fees.

I use Pam Jones for my property in Rotorua. Despite it being in a lower socioeconomic area, I've had no problems so far.

[Wayne]

Yes, there is a dire shortage of rentals in Rotorua. Very long waiting lists with the PMs and lots of people desperate for a house.

Has there been a big influx of people recently or have houses vanished?

[sidinz]

I think there's been a mini influx and a lack of development.

[revdev]

I second what Anthonyacat said above. If you are going to be an absentee LL, then its a no-brainer. Also, by using a PM (even if just initially) you can keep your neighbours at arms length.

[sidinz]

No, I have my own reasons and will not be using a PM.

[Viking]

More than half a billion dollars worth of properties have sold across Rotorua in the past 12 months, and new figures reveal which suburbs have been making the most sales this year.
Real Estate Institute of New Zealand figures supplied to the Rotorua Daily Post show 1707 properties were sold from June 2015 to May 2016, for a total of $535,039,958 - nearly double the previous year when there were 950 sales worth just over $281 million.

http://m.nzherald.co.nz/rotorua-daily-post/news/article.cfm?c_id=1503438&objectid=11660308

Average price $313,438 this year.
average last year $295789


average increase $17649

[Bobsyouruncle]

Rents are going so good in Ngongotaha. Mind you it's after years and years of no movement.

[sidinz]

Yeah, I managed to pick up one property before the prices moved and yields tanked as a consequence. Disappointed that I didn't manage to get more before that happened, but at least the one I got has potential to put 1-2 other houses on it, provided the ground isn't too soft.

[FJW]

Hi Sidinz

This is a good post, I wouldn't allow her to be involved with any of the renovations because if they do then often they feel that you owe them a favour which means you neglect running the property like a business and when it comes time to increase the rent they will refer to this.

Also make sure you verify that her references are legitimate.

If you decline her application don't give her reasons as your not obliged to as that can also open up a can of worms. Just say that you have run it past your higher authority and they have made the final decision.

Hope this helps

[Halfway To Paradise]

Has there been a big influx of people recently or have houses vanished?

There has been an influx over past couple of years my understanding the decline of population of the past 10 years has been recovered. I am getting good rental increases on all my properties and very short turnaround when on the rare occasions they have vacated. I have also had good results on property appraisals and I expect the same on Registered Valuations I am about to have done. Must admit though we have been waiting a long time for this in Rotorua.