Being the landlord and property manager for your investment property can be demanding. Tenants have varying needs from requests and queries to maintenance issues.
Dealing with tenants can be stressful and time-consuming, especially during emotionally charged circumstances such as eviction or property damage. Hiring a property manager eliminates that stress, allowing you to remove yourself from the day to day maintenance of the property.
What Does a Property Manager Do?
A property manager is a third party who acts as an intermediary between you and your tenants. Depending on the contract you sign, they can be responsible for:
- Finding new tenants when the property is unoccupied
- Assessing potential tenants and performing checks
- Collecting rental payments
- Carrying out property inspections and maintaining a condition report
- Answering tenant queries and requests on behalf of the landlord
- Booking tradespeople for repairs and maintenance
- Representing you at the tenancy tribunal
Engaging a professional comes with many reducing risk benefits. A good property manager will have the experience to keep tenants happy while meeting legal obligations. They’ll know what to look for in a prospective tenant and have significant marketing resources to help find new tenants.
Property managers generally take a percentage of the rental income as a fee. The percentage can vary, with an average cost of $30 a week in New Zealand.
Disadvantages of Using a Property Manager
Hiring an incompetent property manager can lead to major issues like unpaid rent, mishandled bonds, unauthorised pets and fixtures, lack of transparency and unreported property damage.
To avoid these issues, research and meet with different property managers. Before hiring them, ask for references and follow them up carefully. Ask people you know with investment properties who they use and why.
Talk to the local property owners association or ask for recommendations from other professionals such as mortgage brokers. When you hire a property manager, have the arrangement in writing and ensure they do what they say they will.
DIY Property Management
Many property owners choose to manage their own property to avoid extra costs. Those who do often underestimate the amount of work involved. Landlords who manage their own properties have to complete the tasks outlined above while keeping up to date with relevant legislation and regulations.
If you like having control of your property, you can still use professional services for some management areas. For example, some landlords use an agent to find tenants and manage the bond while taking care of the property themselves. In these cases, investors only pay the agent a letting fee.
iLender is Here to Help
If you need advice or assistance with any aspect of your investment property, we’re here to help. Our expert mortgage brokers have a large professional network and the expertise to help property owners achieve their financial goals.
Call us today on 0800 LENDER (0800-536-337) or contact us online with any questions you have about property investment.