New Zealand has long been the haven for property investment, where the birthright to own your own home is the “norm”. We have also embraced the dream where owning a couple of rental properties in your lifetime if you worked hard was achievable. It is still a great way to build equity and diversify your portfolio.
However. with a fast changing climate, first time investors can be forgiven about thinking that Managing rental properties is a mind field that should be given a wide birth. On top of the financials are the day to day running and the time and energy that goes into these duties. With the challenges of looming new legislation, managing a property with the expertise of a Property Management company can still help you achieve your financial and lifestyle goals.
Understanding the value that reputable Property Management companies provide is essential in choosing the right team for you. The following are some advantages that working with a Property Management can bring to the table if you are looking for a transparent partnership and peace of mind.
Tenant Screening: Getting the right tenant is critical to maximising the returns on your investments. Property Managers ensure all applicants go through a background screening and credit check to ensure the best tenant is selected. This rigorous process will bring up red flags if applicants are not being truthful. All application documentation has to be available for MBIE or the Landlord to peruse if asked.
Tenant Retention: Good property management companies have communication going with both the tenants and owners, this ensure problems are dealt with as the crop up and ultimately it leads to happy long term renters.
Correct Documentation: Tenancy laws are complex, but are there as protection for both landlord and tenant if things start to go sour. Common issues like rent not being paid, failure for the Landlord to provide compliance documentation, subleasing, pets being brought into the home without prior approval are challenges that can be messy and stressful. With the right leasing documentation in place, if situations like this arise, it can be dealt with swiftly, your Property Manager would be responsible for enforcing the lease conditions.
Flexibility: In an increasingly busy world, downtime is precious, by leaving property management to the professionals you are free to spend time on the things you enjoy. If you are looking at a Property Management company, I encourage you to test them. Give them a call, see how they answer, are they helpful? speak to tenants or owners of properties they manage, get an understanding of their culture. Take your time to make your decision, after all, it’s your investment they will be looking after.