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  1. #1

    Question How do I get new tenants or new tenancy agreement?

    Hi all,

    I am a first-time landlord, having bought a 3bd state house in Fairfield, Hamilton. I took over the property with the existing tenants. It still seems like a good investment, though I am heading overseas for four years in September, and I want things hassle-free by the time I go.

    So, the problems:

    1. The existing tenants are untidy, and unclean, e.g. sleeping on mattresses without sheets, fires on lawn, mould on ceilings. I think there are two adults and 4 (5?) kids, which is probably too much. Unfortunately, I am unsure of the condition the house was in when they first moved in, as I was not the owner then.
    2. The previous property managers did the lawns, so I do too, even though it is not in the TA.
    3. The rent is $290pw, and I want to increase it, but don't know the details.


    On one hand, I keep the messy tenants with slightly lower rent, but who are likely to stay longer term (kids in nearby school). If I keep them, I was wondering if I can
    1. create a new tenancy agreement (the current one is for previous owner)
    2. clean the house beforehand, and take photos etc such that I have a record for how clean I expect the house to be.
    3. stipulate in it that the tenants must mow the lawns
    4. increase the rent in it without waiting 180 days


    I am heading overseas soon, but my parents may be able to manage the property, as really, all we are doing is mowing the lawns, which we need not be. Or, I could get a property manager to save myself the hassle --- however, I can't justify the 8% fee for them doing nothing. Thoughts?

    On the other hand, I move in to the house (42 day eviction), clean it up, and get in new tenants. This way, I have the aforementioned problems sorted out, and get the new rent quicker. I'd also be able to choose more suitable (and clean) tenants. The only problem, of course, is how long it takes to find new tenants --- does anyone know if there is a resource telling me about this?

    I realise I've got quite a few questions in there, but any responses would be most appreciated!

    Regards,

    Ianhoolihan

  2. #2
    Join Date
    Apr 2004
    Location
    Auckland
    Posts
    1,896

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    Getting stuck in and sorting out the problems will be great training for you as a land lord.
    Pretty quickly you'll discover if herding cats & cleaning (lots of cleaning) is worth the meagre returns.

    You're on shaky ground using a 42 day notice to re-rent the place.
    Issue 90 day notice to vacate.
    Tidy the place up.
    Up the rent.
    Re-let to new tenants and include they must do the lawns.
    Find a local tough as nails PM - shout them lunch - and ask for more specific directions.

    Get a PM whilst away overseas.
    Grow a pair - don't dump your problem on your parents.

    Good luck!
    The three most harmful addictions are heroin, carbohydrates and a monthly salary - Fred Wilson.

  3. #3
    Join Date
    Jul 2011
    Location
    Tauranga
    Posts
    2,769

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    Fully agree on getting a good property manager unless you are prepared to learn the Residential Tennancy Laws inside out (and you parents) it will save you issues in the long run.

    Have a quick squizz through the forums here and the Tennancy Tribunal judgements https://forms.justice.govt.nz/search/TT/ to open your eyes in regards to worse case senarios.

  4. #4
    Join Date
    Aug 2010
    Posts
    2,630

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    How long ago did you buy this thing?

    A PM doesn't "do nothing". That's a silly thing to say. A good one is worth their weight in gold. If things go tits-up while you're away, your parents will be struggling, and it'll be hard to get a PM onboard at that stage.

  5. #5

    Default

    Quote Originally Posted by PC View Post
    You're on shaky ground using a 42 day notice to re-rent the place.
    Issue 90 day notice to vacate.
    Tidy the place up.
    Up the rent.
    Re-let to new tenants and include they must do the lawns.
    Find a local tough as nails PM - shout them lunch - and ask for more specific directions.

    Get a PM whilst away overseas.
    Grow a pair - don't dump your problem on your parents.

    Good luck!
    Thanks for the advice, but why would I be on shaky ground with the 42 day notice? The reason I ask is because I leave in 3 months, which is about 90 days, and I want it sorted before then.

    As for my parents, I understand where you are coming from. But they wish to help, and they'd be doing very little --- all contact with tenants would be through me, so I'd deal with those sorts of problems. I have all repairmen sorted etc as well. So, maybe the odd inspection. At least, that is in my novice opinion.

    Quote Originally Posted by Maccachic View Post
    Fully agree on getting a good property manager unless you are prepared to learn the Residential Tennancy Laws inside out (and you parents) it will save you issues in the long run.

    Have a quick squizz through the forums here and the Tennancy Tribunal judgements ###can't post links### to open your eyes in regards to worse case senarios.
    Hmmm, I couldn't find examples of judgements without details of a specific case. I have looked elsewhere though, and yes, it appears I am way out of my depth.

    Quote Originally Posted by TheLiberalLeft View Post
    How long ago did you buy this thing?

    A PM doesn't "do nothing". That's a silly thing to say. A good one is worth their weight in gold. If things go tits-up while you're away, your parents will be struggling, and it'll be hard to get a PM onboard at that stage.
    I bought the place December last year.

    As for PMs, it depends on the tenants. I have a 2 bedroom place on the section as well, and those tenants have been there 5 years, and are a blessing. A PM would be taking 8% for nothing. In my opinion, PMs are useful for solving/preventing problems.

    However, as mentioned before, I realise that I have a very limited knowledge of what constitutes a "problem" and how to solve it. So, it probably is time to look at a PM, for the 3 bedroom place anyway. I guess that solves some of my problems anyway --- the PM will ensure it is clean, and I'm getting the correct rent. And that the tenants do the lawns.

    Cheers all.

  6. #6
    Join Date
    Aug 2010
    Posts
    2,630

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    Yeah, I used to think it depends on the tenants as well. Boy, was I wrong.

  7. #7
    Join Date
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    How is "good for solving/preventing problems" the same as "8% for nothing"?

  8. #8
    Join Date
    Apr 2004
    Location
    Auckland
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    http://www.dbh.govt.nz/tenancy-notice
    "A landlord must generally give a tenant at least 3 months’ (90 days’) written notice to end the tenancy. However, there are some circumstances where the landlord is not required to give as long a notice period.

    If the owner of the property or a member of the owner’s family requires the property to live in, or there is an agreement to sell and the buyer wants the property empty, then the notice period is 42 days.

    If a landlord regularly uses, or has purchased, the property for their employees to live in, 42 days’ notice applies. However, the tenancy agreement must clearly state that the property is generally used for this purpose.

    If 42 days’ notice is given, the landlord must include the reason in the notice to end the tenancy.

    If a landlord gives a tenant notice to end the tenancy, then the tenant is entitled to continue possession of the property until the termination date. "

    So give 42 days notice, move in yourself for a week or two to renovate, re-rent it then go overseas.
    Tenant sees property for rent shortly after being kicked out - takes you to TT.
    Guess who will win that one?
    Maybe you get away with it...
    The three most harmful addictions are heroin, carbohydrates and a monthly salary - Fred Wilson.

  9. #9
    Join Date
    Mar 2007
    Location
    Auckland
    Posts
    3,017

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    A 42 day notice is only valid if you are going to sell the place or move in yourself (or some of your family do).
    You will not get the existing tenants to just accept a new TA. What have they got to gain?

    Issue a 90-day notice immediately. Don't give any reason (very important).
    A bit further down the track you can (a) either offer the existing tenants a new tenancy on a new TA with your terms and rent, or (b) have the remedial work needed assessed prior to your departure, the tradespeople lined up to carry out this work, and a Property Manager organized to install a new tenant if the work is completed after you have left.

    I would go for the second option.

  10. #10
    Join Date
    Jul 2011
    Location
    Tauranga
    Posts
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    Default

    Is it a fixed term or periodic term?


 

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