If you are managing or considering managing your own residential rental property there are several points that are worth considering;
Regulation
We are seeing more and more regulation coming into the industry. A good Property Manager should be aware of legislation changes and how it affects their job. A good Property Management company should have procedures and processes in place to comply with all relevant legislation. They should operate under a Code of Practice governed by one of the industry bodies such as the Leading Property Managers of New Zealand (LPMNZ).
Residential Tenancies Act 1986
As the act implies it governs all Residential tenancies in NZ. It is the core legislation for our industry andsomething that all Property Managers must be experts in. Do you have a thorough understanding of the Act and its implications? The person responsible for managing the property must be able to deal with Tenants in a professional capacity and act in a fair and reasonable manner.
Tenant Selection
Getting the right tenant into a property is key to obtaining a positive return on your investment. An experience Property Management company knows how to dig for the information that matters and find potential warning signs that all might not be quite what it seems.
A Property Manager can access Credit Checks and in Rented’s case also complete background checking against a database that includes 10 years of Tenancy Tribunal Orders, NZ Court judgements, Sensible sentencing trust judgements, Media reports, Police information as well as many more.
The Tenancy Agreements used by a Property Management company should be up to date with the latest regulations and capture any additional clauses required for a specific property. An experienced Property Manager should be able to write these in a manner that would meet legal scrutiny should issues arise.
Issue Resolution
Often disputes arise between a tenant and owner. Having an intermediary in a Property Manager between you and the tenant shields you from a direct involvement. An experience Property Manager can help moderate the situation and prevent ill feeling.
Procedures & Process
There are a lot of procedures and processes to follow. Some of these that may be worth thinking are;
- Lodging bonds within the required timeframes
- Following up arrears in line with the requirements laid down in the Act
- Representing yourself at Mediation or in Court
- Completing inspections
- Dealing with a property that has been abandoned
- Chasing up bad debts
If you are not familiar with these it is easy to make mistakes that can cost time and money.
Value of Time
Property Management isn’t an easy gig. It takes time, focus and persistence. Being dedicated to this as a full-time job means efficiencies are gained in the way properties are managed and valuable industry knowledge is gained. When you take all of this into account and weigh up the cost of management against your time, the question you need to ask is – ‘is your time worth it’? By using a Property Manager, you can free up your precious time and be safe in the knowledge that your asset is in the hands of someone with appropriate expertise.
