For the majority of NZ landlords, there are really only 3 ways of finding tenants. Advertise it yourself, use a platform like myRent or use a real estate agent. The obvious advantage of doing it yourself or using myRent is saving money but there are some other less obvious advantages.
Using myRent.co.nz
** A one-off advertising fee and a small investment of your time** ** $55 to advertise on realestate.co.nz, OneRoof, Facebook, Trovit and myRent, and an additional $155 to include a Trade Me and Homes.co.nz adverts**
Advantages:
- Bigger exposure. Your ad is not only listed on Trade Me, but also on realestate.co.nz, OneRoof, Homes.co.nz, Facebook, Trovit and myRent. realestate.co.nz (NZ’s second-biggest property site), OneRoof, Trovit and Homes.co.nz are normally not accessible to private landlords.
- More enquiries. Our data shows that less than 50% of enquires come from Trade Me, another 50% come from myRent, OneRoof, Homes.co.nz, realestate.co.nz, Trovit and Facebook
- Hand select your tenants - if done right you will end up with higher quality tenants who should pay more reliably and stay longer.
- Streamline applications. Move the rental process along quicker by using myRent online applications. Compare, decline, accept applications right from your listings page.
- As an optional extra we can assist with tenant checks and assist with tenancy agreement creation and bond lodgements.
- A personal relationship with your tenants - when small or large problems arise in the tenancy having met your tenants makes a huge difference.
Disadvantages: - Requires initial time investment (Should be offset by better quality tenants)
GOOD FOR: Local landlords, practical landlords, landlords who are particular about their tenants, landlords who have tight cash flow or want to maximise their profit
Steps required:
- Prepare the property
- Advertise on myRent.co.nz
- Arrange viewings / open home
- Set up a property management solution - Do it yourself, pay a property manager (typically 8.5%) or use myRent.co.nz’s management service for $17 per month
myRent gives you an advertising power of an agent by advertising your property on more sites than you could do yourself, so your ad is seen by more potential tenants.
Some landlords will look at the cost difference between finding tenants yourself and using an agent and say the difference in cost is not worth the extra effort. But I believe this is not the majority of the financial or time benefit. The benefit comes over time as your ability to select a better quality tenant who will more reliably pay rent, look after the property better and will stay with you longer. Through personally selecting your tenants you have the opportunity to make an intuitive decision and build a personal relationship, which for the small upfront time investment will save you thousands down the track.
Finding tenants yourself
Cost: $99-199 - Advertising costs on Trademe.co.nz and small investment of your time.
Advantages:
- Saves you money. Still generally cheaper than advertising with the agent
- Hand select your tenants - if done right you will end up with higher quality tenants who should pay more reliably and stay longer.
- A personal relationship with your tenants - when small or large problems arise in the tenancy having met your tenants makes a huge difference.
Disadvantages:
- Requires initial time investment (Should be offset by better quality tenants)
- Missing out on enquiries from tenants who search for properties on realestate.co.nz, homes.co.nz, Oneroof.co.nz and other agent sites.
GOOD FOR: Local landlords, practical landlords, landlords who are particular about their tenants, landlords who have the tight cash flow or want to maximise their profit
Steps required:
- Prepare the property
- Advertise on Trademe.co.nz
- Arrange viewings / open home
- Sign paperwork and register bond
- Set up a property management solution - Do it yourself, pay a property manager (typically 8.5%) or use myRent.co.nz’s management service for $17 per month
NZ landlords have an advantage over many other western countries because of the dominance of Trademe.co.nz. Because Trademe.co.nz is the largest advertising platform for property (and even more dominant for a rental property) and landlords have the same access to this audience as agents you have the opportunity to market your property to a large volume and quality of potential tenants. In Australia Realestate.com.au and Domain.com.au dominate property advertising, in the UK it is Rightmove.co.uk and Zoopla.co.uk. But all these platforms are designed, optimised and focused purely on agents so landlords in those countries are severely disadvantaged if they try and go it alone as the potential tenants they can reach through private advertising is smaller and of lower quality.
Using an agent
Cost: Varies depending on agent but generally around one week's rent
Advantages:
- Some of the work is done for you
- Don't have to attend the property
Disadvantages:
- Higher cost
- Less control of tenant selection
GOOD FOR: Landlords who are overseas or in another city
Steps required:
- Prepare property
- Research / interview / select an agent
- Negotiate agent rate and sign terms
- Approve tenant's application and sign paperwork
- Set up a property management solution - Do it yourself, pay a property manager (typically 8.5%) or use myRent.co.nz’s management service for $17 per month
Whether you choose to use an agent to find your tenants or do it yourself you can still use myRent.co.nz management tools. Just tell your agent you already have a property management solution and you only want their tenants to find solution. Remember to check your agent's terms when you sign them!
The information contained in this article is exclusively for promotional purposes. It does not in any way constitute legal advice and should not be relied upon as the basis for any legal action or contractual dealings. The information is not, and does not attempt to be, a comprehensive account of the relevant law in New Zealand. If you require legal advice you should seek independent legal counsel. myRent.co.nz does not accept any liability that may arise from the use of this information.
