Page 3 - February Newsletter 2020

What makes a good Rental Property..
continued

1 - Location
"Location, location, location is the catch cry of real estate. It's the same with rental property
and there is a demand in virtually every suburb. Some suburbs are more desirable than

others, but like Buyers, tenants need to balance their desires against the money they can
afford. Your choice of suburb to buy in will be determined by a matrix of what you can afford

to buy, the rent the house attracts, and what tenants can afford to pay.
Once you have settled on a suburb to search in, the question of location is still important i.e.
on the main road, near train stations, near schools, parks and shops. You need to

understand who your tenants are. Where do they work? Why do they choose this area?

2 - Neighbourhood
Take a long, hard look at the immediate neighbourhood. It is tempting to choose the best

house in the worst street because it is cheaper Would tenants want to live there?
Like attracts like - Are the neighbouring houses in poor condition? Or are there unsavoury
characters hanging around? Tenants have the same prejudices as owner-occupiers about

certain neighbourhoods and streets.
Visit the neighbourhood at various times of the day,night and weekends, looking especially

for 24/7 activity on the streets. If it's a party central at night, your tenants may not stay long.
Look at what's being built in the area. Could there be a glut in the future, which could drive
down return on your investment (yield).

Every home, from a tiny apartment to a six bedroom house, will attract tenants. Just how
much demand there will be at the right rent depends on many factors including size, layout,

bedrooms, and living areas.

3 - House Size and Layout
Never assume that location is enough. When it comes to layout and size, you need to think
of your target tenant in mind. If couples, a one or two bedroom apartment, flat or unit will

have potential. If young families, look for three to four bedroom homes with sections.
No one wants to sleep on a single bed anymore, or up against a wall in a room that's too

small for a queen-sized bed. Use a compass app to see which way the living area's are
facing. Tenants prefer north & west facing houses. If the wet areas are south facing, you
could have problems with dampness and mould.

The home may have parking, but if there are no spaces on the street, where will visitors
park? This can put tenants off.

&

P A P A K U R A continued..
Life Property

is happily brought to you by

Chris Grantham 0274 960 959 c.grantham@barfoot.co.nz
Karen McGehan 027 296 1449 k.mcgehan@barfoot.co.nz