How to rent to immigrant tenants

Renting to immigrant tenants

New immigrants to NZ come with their own set of beliefs about what renting a property means.

There are always going to be challenges in dealing with tenants from another country with a culture very different to your own. Even people from other English speaking countries will have their own assumptions about what renting a property involves. As the variety of cultures within New Zealand continues to expand, so the need for us as landlords, to understand more about other cultures and their requirements will increase. Here’s a few suggestions for ways you can help smooth the road ahead when managing your propertyand renting to people from another culture.

Money

A lot of immigrants are used to haggling on prices and conditions where they come from, and that can be a bit of a drag when they want to negotiate everything from the rent to the colour of the carpet. I had one tenant who was a very highly paid medical specialist who asked if I would drop the rent by $10 if he re-signed. I agreed, so he asked if I would drop it by $20 if he re-signed… I could see where the conversation was going but by then it was too late! Haggling is something that is quite foreign to most New Zealanders and it can seem rude to us. However, bargaining for the best price is just part of every day living in some cultures, so instead of getting offended, be prepared!

  • Be polite and friendly but firm on what price you want and what you’re prepared to negotiate on.
  • Back up your asking price by explaining what great value the rent is because the house is; close to schools, very new, nice and warm… etc.
  • Be honest. If you agree to a price or terms, don’t reneg later.
  • Be prepared to give a little. The other person is only trying to do the best by their family.
  • Have fun. Being a new immigrant is tough enough without dealing with grumpy, intolerant natives!

Privacy & Security

Privacy means different things to different people. New Zealand’s population concentration outside the main centres is pretty low. If we go to a beach several miles long, we say it’s crowded if there are more than 6 people there! On the other hand, to an immgrant from a city of several million, where personal space is a luxury, privacy might not be something they think of in the same way we do. I once had some devout Indian Catholics in a basement flat below my home, who thought that religious meetings with 15 of their friends including lots of chanting and singing were ok… every weekend! They didn’t intend any harm but it wasn’t compatible with the living situation. I don’t think there’s any need for a list of “you can do this but you can’t do that”, but be prepared to have some cultural misunderstandings like this.

Likewise, security in NZ probably isn’t something that we think too much about compared to some people from other countries. A South African lady who was renting a house from me was very interested in how secure the property was. She was used to living in a compound surrounded by razor-wire topped walls. Simple things like changing the barrel in the lock and adding a few security stays might make all the difference and gain you a great tenant.

Facilities

It’s normal for most rental properties in New Zealand to be unfurnished but some immigrants may expect to have a fridge, washing machine and other facilities provided. On the other hand, an immigrant tenant from Belgium might be disappointed that the kitchen cabinets aren’t leaving with the previous tenant, as they might expect (and want) to provide their own. A tenancy agreement of only one year could also be a shock to them, as in continental Europe, fixed term tenancies of several years are quite common. Make it clear what chattels the new tenant can expect so that there are no nasty surprises later.

Housing quality

One “fresh off the boat” English immgrant I knew said that all our houses here looked “temporary”. Having lived in the UK, I can understand the impression they had. A typical brick building in Europe will have external walls consisting of two layers of brick (inside and out), be plastered inside and the centre will be filled to create a very thick, relatively soundproof wall that will probably still be there in 300 years. In comparison, our houses look positively flimsy in comparison and anything built with weatherboards might be called a “shack”. In addition to this, the insulation and heating in older NZ homes is generally atrocious. Condensation could also be a totally new phenomenon to some immgrants from drier climates, so take care to explain about ventilation to avoid mould if you don’t have something like an HRV system.

Tenancy Laws

Be wary of trying to accommodate a tenant and stepping outside the boundaries of NZ tenancy law. It might be great to accept six months rent in advance but it’s not legal! Explain to your immigrant tenants about Tenancy Services and give them the 0800 TENANCY number in case they have any questions. Something like explaining how the bond is held by a Government department can go a long way in soothing any concerns they may have over this significant financial commitment in a new country.

Your willingness to explain how renting a property works in NZ and your openess in explaining their rights, will get you off on the right foot to a long and mutually satisfying tenancy. Remember that leaving everything that is familiar to you behind in another country requires commitment and organisation, qualities any landlord appreciates in a tenant.

 

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