Owning an investment property can be rewarding, but effective property management is the key to turning that investment into a long-term success. Whether you’re a seasoned landlord or just dipping your toes into property ownership, this guide will take you through all of the ins and outs of managing NZ property.
First and foremost, one of the most important pieces of advice you could ever get as a landlord is to understand your responsibilities. Tenancy legislation is comprehensive and there are financial penalties for non compliance.
If you do not want to plough through all the legislation you could consider appointing a Property Management Company. They will be able to:
As you can see the work of a Property Manager is extensive. When you work with a professional and well resourced property management company with all the right qualities, you can succeed.
Now, let’s delve into the complexities of managing NZ properties:
Understanding The Rental Market. Before diving into managing your property with your property manager, it’s crucial to understand the rental market in your specific location. What works in another area of the country may not work in your particular location.
One major advantage of working with an experienced property manager is that they’ll already have the knowledge they need to make smart choices in your area. Not only will they understand current market conditions they will also know the types of tenants that your property is likely to attract.
Property Marketing And Tenant Selection. A vacant property is a burden, rates, insurance and other costs do not stop when a property is vacant. Effective marketing is essential. Your property manager should utilise online platforms, social media and local advertising to showcase your investment property. High-quality photos and detailed descriptions make a significant impact.
Once you’ve gained the attention of tenants, then you need to select the best ones for your space. Tenant selection is a critical step in the property management process and should never be taken lightly. Your property managing company should already have a tenant screening process to ensure you only choose the most trustworthy applicants for your property.
Lease Agreements. Ensure you craft a comprehensive lease agreement that clearly outlines the terms and conditions of the tenancy. Include details such as the rent amount, the payment schedule, the maintenance responsibilities and any specific rules for your property. You, your property manager and your tenants should all fully understand what’s expected from each party.
Rent Collection And Financial Management. Establish clear rent collection procedures to ensure a smooth financial workflow. Specify due dates, accepted payment methods and any consequences of late payments in the lease agreement. Consistent and transparent rent collection practices contribute to a positive landlord-tenant relationship.
Aside from rent collection, budgeting for expenses, such as maintenance and insurance must be considered. Keeping a financial buffer allows you to address unforeseen challenges without impacting your bottom line. Project your revenue from your rental property as fifty weeks as this will provide you with a contingency in case of potential vacancies.
Property Maintenance And Inspections. Naturally, one of the most important parts of property management is property maintenance. Regular property inspections are essential for identifying maintenance issues to ensure they can be repaired and prevent them from becoming worse. Schedule inspections at reasonable intervals and ensure your tenants understand the inspection schedule.
Even with effective maintenance, emergencies can still happen, so it’s vital that you establish clear emergency procedures for issues like plumbing leaks, electrical problems or other urgent maintenance concerns. Always provide your tenants with emergency contact information.
Communication And Relationship Building. Open and transparent communication is the foundation of a positive landlord-tenant relationship. You and or your property management company should do their best to respond promptly to tenant inquiries. Always provide clear channels for communication and address concerns in an efficient manner. A proactive approach fosters trust and contributes to tenant satisfaction.
Legal Obligations And Ethical Practices.
Always provide proper notice before entering the property for inspections or maintenance, and avoid unnecessary intrusion into your tenants’ personal spaces. Additionally, when interacting with your tenants, ensure you stay professional but cordial.
Exiting Tenancies And Property Turnover. As tenancies come to an end, follow the proper procedures for turnover. Conduct thorough exit inspections, settle any outstanding issues and do everything you need to do efficiently. A smooth transition sets the stage for attracting new tenants and maintaining the property’s appeal.
Furthermore, consider periodic property upgrades to enhance your space’s appeal and rental value. Even small improvements, such as fresh paint or updated fixtures, can contribute to tenant satisfaction.
Managing your property in New Zealand requires a blend of legal understanding, financial acumen and interpersonal skills. Being a successful landlord alone can be difficult.
We established Comprendé to assist owners like yourself manage the complexities of being a landlord. Why not improve your chances by starting a conversation with us, we believe that everything starts with a conversation.
We’re experts at maintaining the relationship between owners and tenants and are confident we can assist you as well.
Comprendé: Don’t stress, let us take care of everything for you!
We created Comprendé to lift the standard of services that property owners, buyers, and tenants can expect.
Anita Smith, Senior Property Manager, Comprende'.
It's our job to support owners and tenants through these changes, so we’ve collated our thoughts on a few key topics below.