How a Good Tenancy Agreement Can Protect Your Interests
As a property investor, your primary interest is maintaining the value of your investment. The value of property in Auckland has been steadily increasing for years, so re-sale is always an option that should provide a good return. Renting your investment property is another great way to keep the cash flowing. Renting also creates risks for your property, and that can be daunting for unprepared and inexperienced landlords. In this article, we will explain how a good tenancy agreement can protect your interests.
Avoid Bad Tenants
A comprehensive tenancy agreement will weed out bad tenants. Bad tenants, in this instance refers to those that will push the limits of what is acceptable behaviour in a rental. If you are allergic to particular animals, you will want a tenancy agreement that prohibits those animals from your property. You might not want to live there now, but you may change your mind at some point in the future.
Flats are a rental phenomenon where housemates come and go, and a family home is sometimes shared between half a dozen university students. Sometimes the tenants have turned over at such a rate that there is actually nobody left in the house that signed the original lease. With the right tenancy agreement, you can stop this phenomenon in its tracks by forcing every tenant to register.
Deal with Issues Quickly
Having a detailed and concise tenancy agreement has clauses pertaining to solutions for potential future issues. Other parts of the tenancy agreement might make it necessary to contact the landlord for any and all repairs, so that the landlord can organise a repair person they trust to do the repairs. That also goes for accidental breakages as repairs the tenants will expect the landlord to pay for, like plumbing.
A tenancy agreement is a legal document. It is the first line of protection for property investors and managers. The tenants will have a copy of the document and therefore will be able to read and know about it when they breached it. The time involved for taking tenants to the Tenancy Tribunal for any reason can escalate quickly, and should largely be considered as the last possible option. Having a comprehensive tenancy agreement that spells out consequences, rights and responsibilities in easy-to-understand language is the best way to ensure tenants behave in your interests.
Walker Weir Crafts Exceptional Tenancy Agreements
Walker Weir are highly experienced property managers in Auckland. We always consider how best to manage the property owner’s interests, meaning we are thorough with our tenancy agreements. We also carry out regular inspections to catch minor structural issues before they become expensive problems. Call us today on 0226579432 or contact us online.July 16th, 2018