The reality of managing a property is very different to some simplistic view. The Residential tenancies Act can be a legal minefield. Ask yourself if you are aware of the amendments and changes which came in during 2016? For instance did you know that if you are outside New Zealand for more than 21 days you are required by law to appoint someone to manage the property; or even what type of smoke alarms you have to install? What about 2017 + changes to insulation, heating, and smoke alarm requirements?
Then there are the 2019 Healthy Home Requirements! What do you do to make sure you are compliant and not at risk for a $4,000 fine?
Now we have the 2020 RTA Amendments with another set of changes and a whole new list of huge fines and penalties for landlords. There is even a $2,000 fine for failure to keep records!
It takes time and effort to manage a property well. Here are some good reasons to use a professional property manager.
Here are some good reasons
Saving the Owner's Time
Property managers are set up to efficiently look after a property: they have computer systems, databases of likely tenants and tradespeople, electronic payment systems, knowledge and expertise in tenancy law. For a private landlord to fulfil the same functions can take a lot of time, particularly when dealing with problems.
Complying with the Legal Requirements
This has become a big issue since 2016 with legislative change upon change. It is hard to keep up with all the new forms let alone the legal requirements. A good property manger can keep you on the right side of the law and avoid you being fined. They can also make sure you comply with the least cost.
A good property manager will know the current market in the property’s area and so will set the rent correctly. They will then recommend rent reviews at appropriate times, and will advise tenants why a rent increase is justified. Most private landlords let their rents fall behind the market rate. This alone should pay for your management costs.
Ensure the Rent is collected
Collecting all payments efficiently including bond, rental, and any contributions to repairs. It is not as easy as it seems, other things get in the way of you checking... "I will do it tomorrow"!
They will managing tenant queries backed up with good knowledge of relevant legislation. Coordinating all maintenance and repairs. The property manager will have a group of trusted tradespeople that will do the work promptly and to a high standard: many of these tradespeople will rely on that property manager for a sizeable portion of regular work on their rental properties, so cannot afford to do a poor job.
Deal with Problem Tenants
Avoiding the “nightmare” of poor tenants who won’t pay the rent or disrespect the property. However, if the situation does become that bad, the property manager will have lots of experience plus a thorough knowledge of legislation and processes that will enable them to effectively handle eviction processes. This unpleasant task is better left to someone else if you have too soft of a heart. Your rental properties are your business and you need the money, even if you can understand their plight.
No “Emergency In The Middle Of The Night” Phone Calls
If you've ever gone without a property manager, you know that your tenants can call you any time of the day or night when things are going wrong. For starters, managers all but abolish the need for your tenants to have your home, cell or work numbers.
Show the Property and Sign up Tenants
The manager will advertise and show your property, They will interview every prospective tenant, and have the experience to avoid potential troubles (not all of course). They will vet and compare prospective tenants and do reference checking as required.
Get the Administration done properly
Paying the bills for advertising, utilities, tradespeople as well as, of course, paying the net rental income to the landlord with full supporting information.
Advertisements, Clean-ups and Touch-ups
Your property management service can do all the advertising, clean-ups and touching up that is necessary after a tenant moves out and before a new tenant moves in.
Cheaper in the Long Run
While a property manager can appear to be expensive, in reality they can save a landlord time and stress, whilst maximising your net rental returns.