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Like a lot of Kiwis I’m rather glad that 2011 is over and pleased that I have survived the visictudes it bought.
Traditionally, December is a quiet month in the Landlording business but apparently no-one told the 2011 fairy. Mix one tenant dying, one departing and one leaving under duress and add in negotiations to buy another property. Roller-skate time.
The middle unit of my partner’s St Lukes three-unit block has been rented to an elderly Chinese couple for several years. Although their grasp of the English language has been minimal, they have been good tenants and any negotiations have been assisted by the translation skills of their daughter.
However, all things change and the wife died a short while ago leaving the husband a bit stranded on his own. It was logical that he should go and live with his daughter and her family, so we were given notice of termination of the tenancy set for mid-December.
By arrangement, we checked the property inside and out the week prior and arranged for Jan the handywoman to do the necessary touch-up work over the two days right after termination. Just a repaint of the ceilings and rehanging some venetian blinds.
They had been paying $285 a week, and our initial thoughts were a new rent of $330. However, after a check of similar listings on TradeMe we decided to try for $360. We lodged the listing at 9pm on the Monday night, and had our first phone call at 9.20. By midday on Tuesday we had four other enquiries, and arranged to meet them on Wednesday morning.
The first to see was a Lebanese woman with family who is working at the St Lukes shopping complex. She signed up on the spot with no quibble about the rent level. References checked, she moved in the following weekend, so that’s a nice little income increase for the New Year.
Meanwhile, back over at Manurewa, I’ve been having problems with a low-level tenant. The rent has been paid directly from WINZ, but the non-payment for water used has resulted in a mediators order. This naturally has been ignored, so I have been chasing her along a bit.
A drive-by early in the month showed the house locked up, and of course no rent arrived the following Monday. I was back out to the property with an inspection notice taped to the door like a shot, and still no response.
The following Monday she did call, apparently from a phone at Auckland Hospital, and she promised to meet me there that afternoon.
Did not show, as I expected, so the next step was a locksmith to force entry the following morning. It’s always a bit iffy going into a house like this – you never know if you are going to find a body or a cannabis plantation.
No-one in residence, and some evidence of a hurried departure. Clutter left lying around and no cleaning up had been done.
I spent some hours stacking all the abandoned possessions on to the dining room vinyl so that the carpets could be cleaned, and then we listed the damage.
One wardrobe door off its hinges, quite a few stains on walls, damage to the toilet cistern and in the bathroom, that sort of thing.
Jan did her work over four days, while I took the opportunity to wash down the exterior of the house.
The rental agents that I use in Manurewa listed the property at $360 a week, $10 more than the last let, and found suitable tenants in a few days so the demand is certainly there even at this time of the year.
I have filed for a one party claim on the bond, and as she was on a fixed-term tenancy she will still owe me one weeks rent plus around $800 for the damage repair, cleaning and the locks.
She’ll be hearing from me in January.
In my Manurewa block, one of the tenants there fell behind with their rent. They did arrange to catch up by paying an extra $60 a week, but gradually fell back again.
Eventually I did strongly suggest that they go, and they agreed. Departure date came, and “please could we stay just a few extra days”.
When they did move out, no contact address was given and again, with a fixed term tenancy involved, they owe me around the $500 mark.
It’s all very well to say that tenants are tied in with these fixed term tenancies, but they can still walk away if they want to.
As this tenancy has been fairly short term, a coat of paint over the walls in the bedrooms was all that was needed in that one.
Again, the agents have supplied a new tenant at a $5 a week increase.
In amongst all of this, I have been negotiating for another Manurewa house next door to one I already own. A 1970s three-bedroom place with road frontage on a cross-lease section, the owners had listed it several months ago at $238,000.
I let it sit for some time, as I knew they would get no takers at that price.
Eventually I rang the agents and arranged to look through.
Reasonable nick inside, it’s currently rented at $285.
After checking the LIM and few other things, I sent the owners an unconditional offer of 196K.
After a few days of silence, they counter-offered 220K. As I’d found they had bought at 140K several years ago, I figured I was in a strong position, so with a show of reluctance went back at $197,500 and said that this was final.
They accepted the next day.
Settlement date is set for 25th January. I’m anticipating a week to ten days to polish it up and have it ready for tenancy by early February, hopefully a period of peak tenant demand.
We’ll see how it goes.
Traditionally, December is a quiet month in the Landlording business but apparently no-one told the 2011 fairy. Mix one tenant dying, one departing and one leaving under duress and add in negotiations to buy another property. Roller-skate time.
The middle unit of my partner’s St Lukes three-unit block has been rented to an elderly Chinese couple for several years. Although their grasp of the English language has been minimal, they have been good tenants and any negotiations have been assisted by the translation skills of their daughter.
However, all things change and the wife died a short while ago leaving the husband a bit stranded on his own. It was logical that he should go and live with his daughter and her family, so we were given notice of termination of the tenancy set for mid-December.
By arrangement, we checked the property inside and out the week prior and arranged for Jan the handywoman to do the necessary touch-up work over the two days right after termination. Just a repaint of the ceilings and rehanging some venetian blinds.
They had been paying $285 a week, and our initial thoughts were a new rent of $330. However, after a check of similar listings on TradeMe we decided to try for $360. We lodged the listing at 9pm on the Monday night, and had our first phone call at 9.20. By midday on Tuesday we had four other enquiries, and arranged to meet them on Wednesday morning.
The first to see was a Lebanese woman with family who is working at the St Lukes shopping complex. She signed up on the spot with no quibble about the rent level. References checked, she moved in the following weekend, so that’s a nice little income increase for the New Year.
Meanwhile, back over at Manurewa, I’ve been having problems with a low-level tenant. The rent has been paid directly from WINZ, but the non-payment for water used has resulted in a mediators order. This naturally has been ignored, so I have been chasing her along a bit.
A drive-by early in the month showed the house locked up, and of course no rent arrived the following Monday. I was back out to the property with an inspection notice taped to the door like a shot, and still no response.
The following Monday she did call, apparently from a phone at Auckland Hospital, and she promised to meet me there that afternoon.
Did not show, as I expected, so the next step was a locksmith to force entry the following morning. It’s always a bit iffy going into a house like this – you never know if you are going to find a body or a cannabis plantation.
No-one in residence, and some evidence of a hurried departure. Clutter left lying around and no cleaning up had been done.
I spent some hours stacking all the abandoned possessions on to the dining room vinyl so that the carpets could be cleaned, and then we listed the damage.
One wardrobe door off its hinges, quite a few stains on walls, damage to the toilet cistern and in the bathroom, that sort of thing.
Jan did her work over four days, while I took the opportunity to wash down the exterior of the house.
The rental agents that I use in Manurewa listed the property at $360 a week, $10 more than the last let, and found suitable tenants in a few days so the demand is certainly there even at this time of the year.
I have filed for a one party claim on the bond, and as she was on a fixed-term tenancy she will still owe me one weeks rent plus around $800 for the damage repair, cleaning and the locks.
She’ll be hearing from me in January.
In my Manurewa block, one of the tenants there fell behind with their rent. They did arrange to catch up by paying an extra $60 a week, but gradually fell back again.
Eventually I did strongly suggest that they go, and they agreed. Departure date came, and “please could we stay just a few extra days”.
When they did move out, no contact address was given and again, with a fixed term tenancy involved, they owe me around the $500 mark.
It’s all very well to say that tenants are tied in with these fixed term tenancies, but they can still walk away if they want to.
As this tenancy has been fairly short term, a coat of paint over the walls in the bedrooms was all that was needed in that one.
Again, the agents have supplied a new tenant at a $5 a week increase.
In amongst all of this, I have been negotiating for another Manurewa house next door to one I already own. A 1970s three-bedroom place with road frontage on a cross-lease section, the owners had listed it several months ago at $238,000.
I let it sit for some time, as I knew they would get no takers at that price.
Eventually I rang the agents and arranged to look through.
Reasonable nick inside, it’s currently rented at $285.
After checking the LIM and few other things, I sent the owners an unconditional offer of 196K.
After a few days of silence, they counter-offered 220K. As I’d found they had bought at 140K several years ago, I figured I was in a strong position, so with a show of reluctance went back at $197,500 and said that this was final.
They accepted the next day.
Settlement date is set for 25th January. I’m anticipating a week to ten days to polish it up and have it ready for tenancy by early February, hopefully a period of peak tenant demand.
We’ll see how it goes.
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