These units are located in a "good" street a short walk to the CBD and an even shorter walk to the Westend Shopping Centre with a New World supermarket, medical centre, pharmacy and shops. They have an excellent occupancy history as this location is desirable and the current property manager has a very good relationship with all the tenants. I have been told there is no arrears history with these tenants, one of whom has been there for 8 years.
The current rents are below market rent as the owner has been happy with this level. I have several rental appraisals for this property: the current manager who has indicated market rent could be higher. We also have two other independent appraisals which indicate there could be up to a 9.4% return on these properties.
Overall the units are all in tidy condition. They have just had insulation installed in the roof and new heaters in the living areas. The tenants all commented to me on how warm their homes were, and of course this is important in Rotorua with cold winters. Most of the units are nicely decorated in neutral colours and when I visited the tenants had their homes clean and tidy.
The units all have an open plan type kitchen/dining/lounge with outdoor access to a private back yard with clothesline. The bathrooms with shower and vanity are combined with the laundry.
There is plenty of off street parking for tenants. At the end of the driveway is an old storage shed in run down condition that some of the tenants use for storage. A suggestion to add value would be to replace this with a carport for several cars and/or separate lock up units.
At the request for privacy of the current tenants we do not have any internal photos of their homes, so the photos we have shown are a various selection of the units unoccupied. I have advised the tenants that a building inspector or valuer will need to take photos and they are okay with that.
There are a few small maintenance issues that will possibly require some work and the property manager has let me know of two things that will require attention: a drain in the driveway that overflows after heavy rain and one of the block ends of the units may need some repairs. Of course we recommend any prospective purchaser get a building inspection as well