It doesn’t cost a thing to get a rental appraisal upfront, but not getting one could cost you heaps down the line.
No two apartments are created equal. There are good apartments that will attract a high rent and seemingly good apartments that won’t. Knowing the difference will make all the difference between a successful investment and a poor investment, says Graeme Henderson, principal of Quinovic Apartmentsonline. “Every apartment differs; there are apartments that fit the student market; others, the semi-professionals; and others, the professional market. It’s about the layout, the feel, the location and the presentation. All, to varying degrees, impact upon how attractive an apartment is to rent and how desirable it is to rent.”
Graeme Henderson is the principal of Quinovic Apartmentsonline and Quinovic Takapuna. Both businesses are part of the Quinovic group, specialist property managers operating nationwide providing care and returns for New Zealand residential property owners. Quinovic Apartmentsonline specialises in the management of central Auckland apartments whilst Quinovic Takapuna specialises in apartments, town houses and residential houses situated on the North Shore. Too often they are brought in too late, when a budding investor has already signed on the dotted line and purchased a property that won’t fit their long-term desires or current financial position.
“If possible we like to be brought in right at the beginning, before any contracts are signed, to give prospective buyers a proper rental assessment; to explain where the property they are looking at might fit in the market,” says Graeme. Graeme offers free rental assessments and say they are more than happy to advise prospective clients about what does and doesn’t make an apartment a high-rent potential. “We give our clients advice on how to present an apartment, this means providing feedback and recommendations on internal decoration, furnishings and layout. All of these factors impact upon the attractiveness to the ideal tenant and consequently the market rent attainable,” says Graeme.
Buyers need to look at the location of the apartment they are buying, how big it is, how much storage there is and how light it is, says Graeme. “Is there morning sun, afternoon sun, a balcony? Car parks are highly desirable in the city and will only become more so as the council continues to push public transport. Also what development is happening around the apartment?” Another critical factor buyers must get their head around is that they are buying into a building with multiple owners. It’s important to find out about the history of how the apartment has been run and managed, the maintenance that’s coming up and how well that’s been budgeted for,” he says. All of these factors impact upon the rent an investor can charge and the return they are left with when all the costs are taken out.
“When we have those first meetings with owners or prospective owners, we try to ascertain what the long-term goals of their property investment strategies are,” says Graeme. “Are they looking for short-term gain or a bit of a nest egg that will provide a stable return when they are older? If it’s the latter, that will suit a longer-term rental proposition.”
“Many people buy apartments with just one vision in mind: what will it sell for in five, 10, 15 years, rather than looking at it from both points of view – what potentially will my investment produce over time in terms of capital appreciation and return. A nice apartment in a bad area for tenanting is going to cost you a lot of money in a relatively short time and that’s going to blow your long-term vision away.”
Graeme Henderson is happy to meet with any existing or prospective investors to share his tips for success and to assist in getting the right return on their property investment.
By Graeme Henderson from Quinovic Apartmentsonline and Quinovic Takapuna