Hi all. Finally I have come across some a good cashflow positive property that I am attempting to buy. Problem is that Christmas is looming (not many sleeps now) and I don't want to be lumbered with a property I can't rent until the great NZ Christmas shutdown is over. Any advice from people on this? Is it harder or easier to find tenants just before and after Christmas? Are there times to avoid such as January?
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If it's a good property then 1 month of vacancy is peanuts in the big picture. Go for it.
You could of course try and negotiate a longer settlement, or see if the current owners want to become your tenants for a while.
Gerrard -
Can you negotiate settlement to be after the Christmas break? Maybe a larger than normal deposit on unconditional would make this option more attractive?
Given that the standard 4 week settlement period is already perilously close to Christmas, a 2-week extension would see the agent, lawyer and accountant all on holiday, so there's nothing you can do!
If you negotiate 10 working days for due diligence + 4 weeks from unconditional to settlment, you are already there!
If you have to settle before Christmas, how about offering a discounted rent for the first month (but 4 weeks bond at the full rate) - just be sure that you don't attract a tenant who can pay the full amount, and get a 6-month fixed term tenancy from them.
In any case, make sure you get access before settlement for any work that needs to be done, and also to show prospective tenants around.
cubeDFTBAComment
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Hi, Careynz,
I had to rent a property over the Christmas break a couple of years ago. The tenant moved out on December 24th! I advertised in mid December, thinking I would struggle to find someone. I was inundated. Granted, the rental market was more bouyant then. However, when I asked the people who came to see it why they were looking, most seemed to be using the Christmas break to pack up and do their moving. They thought it was ideal as it gave them plenty of time to unpack.
You might be pleasantly surprised.
Cheers,
Lynda.Comment
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Hi Careynz
I, like Lynda, had tenants move out in December. It took a couple of weeks to find a good tenant but they are still there two years latter. We took the time to do some tidying up around the place before the next tenants moved in.
I would not be put off by the fact that it is Christmas. Try and make the season work to your advantage.
TamaraYou don't know how great things are until you loose it.
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It now appears the vendor wants to settle 6 January, the day I get back from holiday. Sounds like everyone will be on holiday then including potential tenants so I am of a mind to say much later in January. What do others think?Comment
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Im in the mind of 'don't ask don't get'. If you can delay til the end of January, why not. Try also to get an early access clause (there is some good recent discussion on this in this forum) to show potential tenants through, so that your down time after settlement is either nil or at least minimised. From the sellers point of view, it's hard to say no, since, they have a sale. To say no, relist, advertise and wait for another contract is going to be slower, than saying 'yes' to your extra 3 week request. Get advise from your lawyer, but this is what I sometimes use:
"The vendor warrants to allow the Purchaser full access to the property and house itself from unconditional date and prior the settlement for the purpose of showing and securing a tenancy. "
This can also be used for "the purposes of repairs and renovations to local and stautory requirements"
If you have gone unconditional do it through your lawyer, and try and leave the agent out of it, especially if they don't like or agree with this sort of thing. I steer clear of agents who don't agree with this, as they will not 'sell' it to the vendor. In fact Remax Browns Bay is one, and I withdrew an offer because of it.
I hope this helps
Good luckComment
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My property manager in WEllington ran ads the 1st day they could this year - 2/3 Jan whatever - absolutely snowed under with calls - could have rented the palces multiple times!Originally posted by Careynz
I think you will find that the whole population does not go on holiday - I usually dont -too expensive, too busy - Wellington is really nice between Xmas/NY - no commuting hassel! I would stay with that date - advertise on trademe and be contactable by mobile to setup appointments when you get back. Alternativley use a property manager - I can recommend one who definitly works that time of the year !Comment
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Re last post on advertising on TradeMe. I used to do this in the old days when it was free. I now advertise on Finda (www.finda.co.nz), have had good responses. and have relet 2 of the last 3 properties through there (both excellent tenants). Still a small site but growing. And can't beat free!Comment
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Hi Carenyz you will need to make sure both lawyers are back on the 6th many stay away till the 20th i jsut sold a house and after due diligence they came back and asked for 20th settlement not 10th they had put in there. I usually find Mid January on there are alot of people looking and as others have suggested ask for access to show tenants.
if you dont ask you dont get. Worst case they will say no but sometimes they agree.
Best of luck RobynComment
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