Lets face it, property management is not rocket science, there is no wonder so many people attempt to do it by themselves: from a bit of painting or other DIY maintenance, to finding a tenant by advertising the property, conducting an initial inspection, being familiar enough with the legislation throughout the whole process to be safe (tenancy application, tenancy agreement, bonds, what landlord and tenant obligations are) collecting the rent, checking that the rent has been paid, routine inspections, dealing with emergencies, maintenance, daily rent reconciliations, monthly reconciliations, disputes, mediations, and the list goes on.
Property management is one of the most undervalued and misunderstood professions out there. We want to change this.
Hiring a good property management company will not only reduce your workload and stress but it can actually put more $$$ to your bottomline. A good property management company can get steady market rent for your property, protect its value with affordable maintenance, and maximise rent yield through appropriate upgrades. A good Auckland property management company can help you to enjoy the benefits of property investment, minus the stress that comes with hands-on involvement.
Here are the 10 reasons why we think you should hire a good property management company:
1. A good property management company can reduce your risk
Most insurance companies require regular inspections to take place as outlined under their policies. If one of them is missed as a result of the investor just being too busy and an issue occurred, there could be a disagreement regarding a claim.A good property management company would also recommend Landlord Protection insurance that covers you for loss of rent and damage caused by tenants.
2. Your time is much more valuable than the cost of a property manager.
The only reason why property management companies can make a profit is by economy of scale across their hundreds and sometimes thousands of properties. Consider $550 per week property with a professional property management company whom charge, for example, 7.5% plus GST on all rents collected.That’s $2145 per year the investor pays before any tax deductions.Property management is a 365 day, 24 hour role.If something goes wrong, there NEEDS TO HAVE someone available to take action while you are on holiday or at work, spending time with your family or building your wealth. There are 8760 hours in a year. $2145/8760 equates to 24 cents an hour (before deductions). Consider as an investor, whether your time is worth more than that?
3. A good property management company can rent out your property faster.
A good company have the right systems and processes to ensure your property is advertised with great marketing photos, “For Rent” signs and a clear, well worded online advertisement that markets the property at the right market rent. Quite often, they also have a tenant database for them to promote your property to.
4. A good property management company can attract better quality tenants.
Professional property managers don’t take applications on face value and they tend to much a much more superior tenant selection process than private landlords. From comprehensive application forms, to credit and reference checks, to income verification to name just a few.
5. A good property management company don’t tolerate late rent payment.
Property managers check for late payments every morning, then take quick action if money is overdue. If tenants fall into arrears they are contacted by phone, email and/or text. This is usually enough to stimulate prompt payment of the rent arrears. If the tenant fails to pay promptly, a 14 Day Breach Notice is sent to the tenant.
6. A good property management company keeps your property well maintained.
When it comes to maintenance, value for money is the way to go. Continuity of optimum rental income requires quick attendance to repair and maintenance tasks. A good property management company would have established a network of reliable, honest trade people and handymen who repair and maintain properties without unnecessary or excessive expenditure.
7. A good property manager does Property Inspections.
A comprehensive property inspection should be carried out at the start and the end of each tenancy. routine inspections should be conducted every three months. This usually is an insurance requirement and also necessary to protect your investment from potential damages.
8. A good property manager understands the law to keep landlords safe from potential litigations.
Property managers are professionals and they understand the Residential Tenancies Act inside out, so they will keep you on the right side of the law. Landlord Fines can be up to $4000, so for successful Auckland property management it’s important to understand the act and how to enforce it.
9. A good property management company enables you to have Holidays Without Interruption.
Travel and holidays are more enjoyable when you’re not interrupted by tenant requests and problems. Also, the Tenancies Act requires you to appoint an agent if you’re out of the country for more than 21 days.
10. A good property management company can really Help When It’s Time To Sell.
If you decide to sell your investment property, it is very helpful to obtain the cooperation of the tenants through the property manager to ensure that the property is presented well and access to prospective purchasers is not overly restricted.The selection of real estate salesperson is also important, because the sales person needs to be able to negotiate the highest price for your property while also being respectful of the tenant’s rights. Working with a good property management company that understands this and has a relationship with the right real estate salesperson is crucial to the successful sale of your property.