Case study on a tenanted family home in Riccarton

June 19th 2024

Owner had recently purchased the property with existing tenants, stayed with the same property management agency as the vendor.

Under-rented by at least $120 compared to similar homes in the area.
Tenancy costs were charged to the owner without any commensurate addition to rent or direct reimbursement. i.e. Lawn mowing and garden maintenance was included in the rent.
Additional benefits provided to the tenants during the existing lease term, without any extra rent charge to compensate for extra value. i.e. A separate double garage which was used by the previous owner was made available to the tenants.
Previous property manager was minimising the benefits of the house and didn’t include all bedrooms when calculating rent. i.e. “4th bedroom only a single”. The 4th bedroom is ideal for a home office, child’s room or hobby space.

Following Ruby Housing taking on management, the rent was increased to market rate. Net benefit to the owner 19% increase in rent.
The lawn mowing and gardening are now the tenants’ responsibility, as is usual, so the landlord no longer has these additional costs. Costs reduced by average $35 per week. 
Annual gain $5200 + $1820 = $7020; $135 per week.

For more detail, and to chat about your particular situation, please get in touch with Kim Willems.