How to turn your home into an investment property
Not everyone chooses to sell their current home when they decide to move on. Sometimes, it’s not even an option. If you’re looking to hang on to your personal home and turn it into a rental, there are a few things to consider first.
1. Wear and tear
This is perhaps the biggest thing homeowners need to know. As a rental, your personal home will experience more wear and tear than it otherwise would if you lived in it. Your garden will probably not look as immaculate as it once did, and your walls and floors may acquire new scuff marks. So, if you can’t shake off your emotional attachment to the property, you may be better off selling it rather than renting it.
2. Location
The location of your home can have a major impact on its rentability and how easy it is to find quality tenants. If you’re close to local amenities like schools, Waikato University, Waikato Hospital or public transport routes, you have a better chance of keeping your property tenanted.
3. Maintenance
If your home is high maintenance - perhaps it has a pool, a large garden, or old appliances - know that you’ll need to keep it maintained to a reasonable condition to meet your obligations as a landlord/owner. This may involve extra ongoing costs, or costs to remedy the amount of maintenance required.
4. Family homes do best
In Hamilton, family-sized homes do particularly well on the rental market. Four-bedroom houses in Hamilton fetch, on average, between $450 and $520 per week. As for the strongest performing suburbs, Hamilton East/University, Te Kowhai/St Andrews/Queenwood, Dinsdale South/Frankton, Dinsdale North/Nawton and Flagstaff/Rototuna have recently experienced the strongest rental growth for family-sized properties with three to five (or more) bedrooms.
5. Landlord responsibilities
When you turn your personal home into a rental, you will take on the mantle of landlord, which comes with its own set of responsibilities. This includes finding and screening tenants, conducting or arranging inspections, repairs and maintenance. It’s a lot to manage—especially if you’re no longer living in the region. It’s why so many investors hire professional property managers to take care of the day-to-day running of their properties. Moreover, their fees are tax deductible.
Important note: If you’re leaving the country for more than 21 days, you’ll need to either appoint someone as your landlord in your stead or hire a property manager.
6. Tax implications
If you turn your home into a residential investment, be aware that you may not be able to make tax claims against it. It always pays to talk to a professional accountant to make sure you set up your home-turned-rental properly to avoid issues with tax, ownership and debt allocation.
Poll: Is dumping an issue in your neighbourhood?
There's nothing worse than strolling around the streets in your neighbourhood and seeing dumped rubbish.
Have you noticed this in your area? What could we do to combat this around the country?
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43.4% Yes, I've seen some illegal dumping
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56% No, our neighbourhood is pretty good
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0.6% Other - I'll share below
Six tips for improving security around your home
1) Improve outdoor lighting
Ensure that streets, driveways, and front yards are well-lit. Motion-sensor lights around homes deter trespassers by reducing hiding spots and illuminating their movements.
2) Trim your trees
Overgrown shrubs and trees provide cover for intruders. Keeping them well-trimmed around windows and doors improves visibility and reduces potential hiding spots.
3) Secure Entry Points
Ensure doors, windows, and gates are always closed when you are away from the house. Upgrade to more secure locks, deadbolts, or even smart locks for added protection.
4) Add a security camera
Place security cameras in the main entry points to your home. Doorbell cameras are also relatively cheap and a great way to keep track of who is visiting your home when you aren't there.
5) Start a Neighborhood Watch Program
You could reach out to members on Neighbourly to form a group of neighbors who can regularly keep an eye out for suspicious activity and report it. You could also check with Neighbourhood Support to see what is existing in your area.
6) Introduce yourself to your neighbours
The closer you are to your neighbors, the more likely they’ll notice when something unusual or suspicious is happening around your property
Feel free to share anything that you do around your area to deter crime.
Today’s riddle: For all the curious minds next door!
My thunder comes before the lightning.
My lightning comes before the clouds.
My rain dries all the land it touches.
What am I?
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