Managing a rental property is more than just collecting rent. It’s a full-time commitment involving complex legal obligations, dealing with late-night maintenance calls, and finding reliable tenants. How can you avoid turning your investment rental into a major headache?
Fortunately, there’s an easy solution. Professional residential property management services are designed to take all of the stress out of property ownership. Acting as your expert guide and primary point of contact, property managers ensure all legal requirements are met, rent is paid on time, and your tenants are well taken care of. Giving both you and your tenant peace of mind!
What Does A Property Manager Do?
Property management companies in New Zealand offer a range of services to make life easier for you and your tenants. These services can include (but are not limited to):
- Finds And Screens Tenants. Both residential and commercial property management companies work to ensure that any potential tenants who wish to rent your property are a good fit (are responsible and suitable). This might mean ensuring they have acceptable track records and references, but it also includes informing the tenant of what is expected of them.
- Collects Rent. Being the main point of contact for tenants, property managers handle the collection of rent quickly and efficiently. This process includes financial management tasks such as professionally kept invoices and accounts (for tax purposes), chasing up late payments, and ensuring the correct rental amounts are received in a timely manner.
- Organises Property Maintenance And Inspections. Property management companies take the hassle out of property maintenance tasks by ensuring the property is well maintained and looked after in accordance with present legislation (and good practice!). In addition, organising and carrying out regular property inspections and arranging any repairs that may become necessary is also taken care of.
- Ensures Legal Compliance. Property managers take the stress out of navigating the ever-changing legislation governing property owners. They have the necessary industry knowledge to make sure all legal standards are met in an easy-to-understand and hassle-free way for you and your property.
- Provides Conflict Resolution. Property management companies are a neutral point of contact for both you and your tenants, acting as the mediator in any and all conflicts. This helps to ensure all issues that arise are handled fairly and as stress-free as possible.
6 Ways Property Managers Save You Time And Money
Why use a property manager? Why not just look after your own rental property? This is a question that many property investors face when deciding how best to manage the day-to-day tasks associated with owning a rental property. The truth is, this decision will largely come down to how much time (and money) you wish to spend on dealing with the necessary tasks.
1. Attracting High-Quality Tenants
- Time Savings: Finding a new tenant can be a pretty full-on job. A property manager handles all the steps from creating a compelling ad/listing on multiple platforms, conducting interviews and viewings, to handling the flood of inquiries and application paperwork.
- Money Savings: A bad tenant can cost you thousands in lost rent, property damage, and legal fees. Property managers have the expertise and industry knowledge to conduct thorough reference and background checks, significantly reducing the risk of a costly tenant selection mistake.
2. Setting The Right Rental Price
- Time Savings: Researching local market trends and setting a competitive rent can be a complex and time-consuming process for someone new to the market. A property manager often has this kind of insight naturally from working in the business every day.
- Money Savings: A property manager knows the local market inside and out. They will be able to recommend a rental price that is high enough to maximise your income, but not so high that it sits vacant for weeks, losing you money. They can also advise you on minor, cost-effective improvements that will allow you to command a higher rent.
3. More Reliable Rent Collection
- Time Savings: Chasing up late rent payments can be an uncomfortable and time-consuming task!
- Money Savings: Property managers have established systems and procedures in place for rent collection and for handling overdue rent. This helps to ensure consistent cash flow and minimises the risk of losing rental income. In many cases, their quick action can prevent a small problem from escalating into a costly legal dispute at the Tenancy Tribunal.
4. Handling Maintenance And Repairs 24/7
- Time Savings: Dealing with an emergency repair at 2 am or on a public holiday is a disruption to your daily life, not to mention a bit of a pain! Property managers are on call 24/7 to handle these issues for you.
- Money Savings: Property managers have a trusted network of tradespeople and contractors. Because of the volume and consistency of work they provide, they can often secure more competitive rates. They also regularly conduct routine inspections to catch small maintenance issues before they become major, expensive problems.
5. Ensuring Ongoing Legal Compliance
- Time Savings: Staying on top of New Zealand’s constantly changing tenancy laws and regulations (like the Healthy Homes Standards) requires a significant investment of time and research that an experienced property manager can instantly take care of for you.
- Money Savings: Ignorance of the law is no excuse, and any breaches can result in substantial fines and legal fees. It is a property manager’s job to stay up-to-date with all the relevant legal requirements, continually ensuring your property is compliant and protecting you from costly penalties.
6. Maximising Tenant Retention
- Time Savings: High tenant turnover means more time and effort spent on advertising, screening, and moving in new tenants. Developing positive relationships with your tenants will help to ensure healthy and long-lasting partnerships.
- Money Savings: A good property manager builds positive relationships with tenants by being responsive and professional. Tenants are more likely to look after the property and renew their lease if they are happy (which reduces vacancy periods and saves you the money you would have spent on finding a replacement).
How To Choose The Right Property Manager
When working with a property manager, you can usually expect them to handle all aspects of rental property management. However, some services may differ between companies, so it is important to know what to look for when choosing a property manager.
1. Check For Industry Accreditation And Professionalism
In New Zealand, the property management industry is not as highly regulated as the real estate sector. Therefore, a landlord should look for a company that voluntarily adheres to high professional standards. You could ask if they hold a relevant qualification, such as the New Zealand Certificate in Property Management (Level 4). Check online reviews on Google and social media - look for patterns in the feedback, both from landlords and tenants, to get a complete picture of their service.
2. Understand The Services And Communication Style
A good property manager should be a valuable addition to your investment, not just a service provider. Always get a clear idea of their services before signing up. Do they handle everything from marketing and tenant screening to maintenance and legal compliance? Or are there key tasks that fall back on you? Ask about their communication policy. How often will you receive updates? What is their reporting process like? Do they provide detailed financial statements and inspection reports? Transparency is the key!
3. Delve into The Tenant Screening Process
This is arguably the most critical part of a property manager’s job. Proper screening processes will save you from costly mistakes. Ask them to walk you through their tenant screening process. How do they conduct property viewings? Do they have a clear process for vetting attendees while ensuring the property is secure?
4. Scrutinise The Fee Structure
Property management fees can vary significantly between different companies, and the cheapest option isn’t always the best value! Understand their core management fee (typically a percentage of the weekly rent). Is it a flat percentage or a tiered structure? Are there any hidden costs? Don’t forget to ask for a list of all potential extra charges. These might include things like letting fees, routine inspection charges, maintenance surcharges or administration fees for Tenancy Tribunal attendance.
5. Ask The Right Questions!
Finally, prepare a list of questions for your initial meeting with a potential property manager. This is your chance to assess their expertise and personality. You might want to ask questions like, ‘How many properties do you currently manage?’ What is your process for handling rent arrears? Can you provide an example of a recent inspection report? How do you handle maintenance and emergency repairs? And can you provide testimonials or references from current clients?
Looking for reliable property management services in Christchurch, Auckland, Hamilton, Nelson, Dunedin or the West Coast? Give the friendly team at The Rent Shop a call today, and let’s get started on making your rental property management hassle-free!
