The Xmas and New Year period can be a busy and stressful period not only for landlords but also property managers, tenants and tradesmen. There can often be financial constraints over this period and many people find themselves running out of time in the day as the silly season kicks off. The rental market often slows down, tenants can be hard to get hold of, tradesmen shut down for the holidays and the Tenancy Tribunal often faces pressure and delays as applications for rent arrears increase.
This article aims to shed some ideas so landlords can put a strategy in place and be prepared for potential problems. Like tenants, many landlords may be on holiday during this time so being organised can ensure that the "ball keeps rolling" on the management of your property or portfolio. If you can prepare for the below issues before they arise you will be a step ahead of the game.
Landlords need to be able to be contacted at all times of the year. If your tenant has a problem they need to be able to contact you. You should advise tenants of your travel plans and provide them with your preferred contact details which may be a mobile number or email address. All landlords leaving the country for more than 21 consecutive days are required to appoint a New Zealand agent to look after the property and tenant while they are away. You should also contact your tenants to find out their plans as you need to be able to contact them in an emergency as well. If they confirm they will be out of contact ask for a next of kin in case you have any problems.
Email is a great tool to communicate. If you are able to take a laptop with you on holiday or have access to the internet then this will be a great advantage. You should be prepared and have various documentation available should you require it. If you don’t have a laptop then email this information to an email address that you can access remotely like gmail or hotmail, or alternatively save it on a memory stick to take with you. Almost every little town in all corners of the world now have internet access (cafes, libraries, post offices etc) so you can access information should you require it. You should have access to your tenants contact details, tenancy agreements, rent ledgers and 14 day notices at the very minimum.
Experienced and dedicated landlords should also have access to marketing plans, photos and advertisements as well. This is in case tenants give notice during the festive period and you can begin to market your property from wherever you may be holidaying. This will help ensure any potential downtimes between tenancies are reduced by being proactive about marketing your property as soon as current tenants give notice.
Landlords should continue to check rent payments are received regularly throughout the holiday period and not wait until January to check rents and take action with missed payments. Generally the quicker you get on to rent arrears the smaller the debts and the quicker you will get payment. If your tenant misses the rent then contact them and issue the 14 day rent arrears notice without delay. If the missed payment has not been remedied then make an application to the Tenancy Tribunal to recover the arrears. This can be done online with a credit card. You will need to attach rent ledgers, tenancy agreements and 14 day notices at a minimum. If your tenant remedies the missed payment after you have made the application you can always withdraw the application at a later date. Failing to take action means you may face increased arrears and delays with the Tenancy Tribunal mid January as property managers and other landlords return from holidays and lodge applications to recover missed payments.
All landlords should have easy access to a tradesmen reference list in case there are urgent problems while you are away. Your usual plumber, electrician, locksmith, glazier, roofer etc may also be on holiday at this time of the year so you need to confirm access to tradesmen that will be available throughout including the statutory holidays (preparing for the worst!).
A problem shared is a problem halved and a problem anticipated can be a problem half solved! If you are prepared for everything and you have a process in place to deal with the worst case scenario then you’re a step ahead of the game!
If you would like to free up your summer, get Allen Realty on board to manage your property and we'll look after the communication, troubleshooting and maintenance for you. Switching to us is easy —all you need to do is fill in our Property Management Authority form and send it back to us and we will arrange the entire transition. Or you can request a free consultation to discuss your property and requirements.
