10 March 2020
Property Managers: protecting your investment
Property Managers: protecting your investment
You’ve done the figures, worked out the maths, and taken the plunge into starting or expanding your investment portfolio. Now, you need to decide: do you manage the property yourself, or hire a professional?
Today, we’re looking at property management, how it can benefit your portfolio and whether it is the right option for you as an investor.
What is a Property Manager
Whether you’re new to the investment property market – welcome! – or have been in the game for a while, property managers are a great way to help you manage your property, so you as the landlord, don’t have to.
In short, a property manager is contracted to look after your residential investment property in the day-to-day management of its affairs. What they do, is effectively up to you. If you’re looking for end-to-end management, they can cover everything from setting the rent, screening tenants, through to handling all the property maintenance and tenancy disputes. Property managers can also be hired to handle particular aspects, like your rent collection to ensure it is done in a legally correct manner.
Property Manager and Landlords
Are you experienced in tenancy law? Do you have a network of contractors to promptly take care of your property maintenance issues? If you answered ‘no’ to both of these questions, then the hard truth is, you may need to contract these skills to ensure full control of your investment.
Most investors choose to hire a property manager because they view real estate investing as a passive income and don’t want it to impact their personal time. Knowing your own rights as a landlord, and those of your tenants, is important to ensure you remain out of the Tenancy Tribunal.
The middleman
There are many roles a property manager can take on when managing a property. Working with tenants is one of these core responsibilities, which is a major benefit for an investor.
For instance, how you manage rent. Collecting rent on time is the only way an investor can consistently manage cashflow. A property manager acts as a buffer – or the middleman – between you and the tenant, so they understand it’s a non-negotiable. They’re the ones who will chase for your rent, to ensure you’re being paid, and if necessary, evict the person living in your property if these payments are not made.
This is especially important in the current Waikato climate, where inquiries for rental properties were up 14% last year. Unlike an owner, property managers are only doing their jobs and it’s their obligation to enforce lease agreements. At the end of the day, it’s all about keeping good tenants in your property.
The Residential Tenancies Amendment Bill
First announced in November 2019, The Residential Tenancies Amendment Bill is making headways in parliament, set to implement changes that “modernise New Zealand’s rental laws and align them with the present-day realities of renting in New Zealand.” It will impact both tenants and landlords, but is essential for landlords to understand – if anything, only to ensure the property is legally compliant for a tenant. You can read more about the bill here.
Why Lugtons?
At Lugtons, we understand the climate of the rental market in New Zealand. If you want to develop your residential property investment portfolio, but don’t want to endure the time and hassle to manage your property, we’re here to help.
Our team of experienced professionals are unrivalled when it comes to managing properties across the Waikato. Contact us today to discuss how we can offer you a personalised service that reflects your needs.
