Living offshore? How to maximise your NZ property

If you are living overseas and have a home in New Zealand, what are the different ways you can engage the rental market?

There are various ways to utilise your rental when living overseas, here are some key options and considerations:

Engage a property management company: Engaging a property management company like Goodwins will take care of everything from finding and screening potential tenants, collecting rent, property maintenance and dealing with any tenant issues. 

Long-term leasing: Renting your property on a long-term lease (typically 12 months or more) provides stable income and reduces the frequency of tenant turnover.

Short-term leasing: There is the option to use services like Airbnb or Booking.com to rent out your property for short stays which can offer higher rental income potential, flexibility to use the property yourself, and have professional property management options available. However, be mindful of potential increased wear and tear, frequent tenant turnover and the need for local management support.

Relocation specialists: You can use relocation services to deliver tenants, catering to expats and professionals relocating to New Zealand. This tends to attract reliable tenants who may require long-term leases and are often backed by corporate guarantees. Relocation services may charge a fee, but it can result in high-quality tenants. However, you will still need to engage a company to manage the tenancy.

What are the pros and cons of renting and selling your home in New Zealand when you live overseas?

It’s important to consider your long-term plans, financial goals, and ability to manage property-related responsibilities when making your decision. Consulting with a real estate professional can also provide valuable insights tailored to your specific situation. Here’s are some key factors to help you make an informed decision:

Pros of renting: Renting your home provides a steady stream of rental income, which can help to cover mortgage payments, maintenance cost and can potentially generate profit. It also allows you to benefit from potential increases in property over time. Renting your property offers flexibility in that you can retain ownership of your home, giving you the option to return to it later in the future, or sell it if market conditions improve.

Cons of renting: Managing a rental property from overseas can be challenging and time-consuming. It often requires hiring a property management company which incurs additional costs. It can also mean you are dealing with potential tenant issues, vacancies and property maintenance which can be tricky to manage from afar and costly.

Pros of selling your property: Selling your home provides a lump sum of cash that you can use for other investments, paying off debt, or funding other expenses. Once the property is sold you no longer have to worry about property management, tenant issues, or maintenance costs. If you sell in a strong property market, selling your home can yield a significant profit. 

Cons of selling your property: Selling a home you have an emotional connection to can be difficult, especially if you plan to return to New Zealand in the future. It also involves costs as real estate agent commissions, legal fees, and potential capital gains tax which can reduce your net profit. If the property market is in a downward cycle, you may not receive the desired price for your property.

What are your top tips for managing a rental from afar when living overseas?

Here are top five tips that for managing a rental property while living overseas:

Hire a reliable property management company: Choose a company that offers comprehensive services like tenant screening, rent collection, maintenance, and legal compliance. Ensure they have good local knowledge of the area you are in, a solid reputation and reliable communication.

Utilise technology: Use online platforms to track rent payments, maintenance requests, and tenant communication. You can also conduct property inspections through video calls and virtual tours. It’s wise to install smart locks, security cameras, and other devices to monitor the property remotely.

Set clear expectations with tenants: Ensure your lease agreements are comprehensive, outlining all terms, responsibilities and expectations, and establish clear lines of communication for tenants to reach you or your property manager.

Build a reliable local network: Have a list of trusted contractors and service providers for maintenance and emergency repairs, and maintain relationships with local real estate lawyers and accountants to ensure compliance with laws and regulations.

5. Stay informed on rental laws and market conditions: Keep updated on rental laws, tenant rights, and any changes in regulations. It’s also best practice to monitor the local real estate market to make informed decisions about rent pricing and property improvements.

What additional support do you offer for Kiwi owners living abroad?

At Goodwins, we have landlord clients living all over the globe and have helped them to sell their investment properties. Goodwins provide comprehensive property management services tailored to meet the unique needs of overseas homeowners through full-service management including tenant screening, rent collection, maintenance, and legal compliance, ensuring your property is in expert hands. 

For more information and advice on how to handle your NZ property, contact Goodwins.