Having a rental property is like being your own boss. It sounds great on paper, especially when you're managing a portfolio of rental properties and earning some income from it.
However, managing a rental property can lead to a surprising amount of work if you're doing it on your own. Making your property look good so it attracts the best price, advertising in the right places and finding a great tenant. Doing appropriate background checks, and making sure the rent is paid on time. Handling any issues as they arise and keeping your tenants happy.
While many people can effectively manage their property portfolio on their own, balancing this well with other commitments (like family and work) can be too stressful for others. But the good news is, that you don't have to manage it on your own.
There are many attractive reasons to have the stress and hassle of property management taken off your hands, and in this article, we'll explore our top 10 reasons for engaging with a professional property manager for your rental.
1. Managing maintenance
Even the best tenants in the newest houses can experience maintenance issues. An example is of an eight-year-old property that was built on an older sewage system that the roots of a tree had wormed their way into. The sewage backed up and the tenants made a call to the property managers.
This is a best-case scenario, where the tenants looked after the property and the house was new so repairs would have been simpler. For older properties, and with tenants who may not take the best care of the home, problems can arise more frequently. Having a property manager, with a team of contractors to fix the issue, can save you time, money and stress.
2. Managing time
A house doesn't wait until a nice time of the day to break - after all, most tenants will be at work when you have time to deal with any issues!
So it's often in the evening, weekends or even late at night that things go wrong. If you don't mind dropping whatever you're doing to respond to a callout, then this won't be a problem. But if you hoped to have a steady stream of income with minimal effort, the reality might be quite a shock.
3. Managing money
Chasing late rental payments can be challenging if that's the sort of thing you like to do. But if you're not confident discussing money with tenants and chasing up payments, then enlisting the help of a property manager can help you here. Property managers are experienced in dealing with matters of money and late payment issues, so they know how to best handle the various people and situations you may encounter.
4. Knowing the law
Do you know what your legal obligations are as a property owner? Do you know what legal rights your tenants have? Let's face it, understanding the ins and outs of regulations can be complex, especially if it's not something you specialise in.
Professional property managers are trained to understand who have what rights and if anyone is or could be in breach of any regulations. They can advise you on best practices, so you can avoid any trouble and potentially hefty fines. They can also help you manage disputes effectively so you don't land in any hot water.
Between 2011 and 2016 there were an average of 33,000 tenancy disputes, and only around 4,100 were with landlords that owned more than 5 properties.
5. Evicting a tenant
Laws do change regarding the notice periods you're allowed to give a tenant if you want them to move out. You may need to give 42 days notice or 90 days notice to a tenant, depending on the reason for their eviction.
Remember that improper handling of the eviction process may result in a visit to a tenancy tribunal! An experienced property manager can help you understand which time period you'll need to offer, and how to do it fairly.
6. Finding new tenants
If your tenants leave for whatever reason, then you begin the process of finding new tenants. If your property is in a highly desirable location, then this can be as easy as posting an ad on TradeMe and waiting for the calls to come in.
However, do you know the best times to be looking for new tenants or even the best places to advertise? What about how you should be pricing your property? If you price your property too low then you will get tenants quickly, but you may be stuck with a lower income than you could have achieved. Price it too high and finding tenants may be a slow process.
A property manager will be able to give you insider information on the price of properties in your areas, indications on the types of people looking for properties at that particular time, and they may already be talking to tenants that are perfectly suited to your property.
7. Vetting your tenants
Good tenants are hard to find, and bad tenants are very good at looking like good tenants (if you don't know what to look for).
Reference checks are important, but not everyone has the time or correct resources to do thorough assessments. Could you be calling an uncle rather than a real former landlord for a reference? Using a property manager means they can do extensive checks to ensure you're getting good tenants into your property.
8. Getting the right price
A property manager is going to want you to get the right tenants at the right price that is fair for both the tenant and homeowner. They will also ensure that you'll be paid on time, every time.
Property management companies typically take a 10% fee off a tenant's rental payment each week (depending on the company). And that 10% is worth it when you think about the time, stress and out-of-pocket expenses you may incur when managing properties yourself.
9. A network of tenants
Many property managers have a list of potential tenants seeking a property. This means that if yours falls vacant, they have a number of potential candidates they could call for you quickly.
In many cases, this is a database of tenants and prospects, and in other cases they will use their expertise to list your property online. This includes relevant industry sites (like their own website or realestate.co.nz and social media pages to get the best reach possible.
10. You don't know what you don't know
When you're managing a property part-time or as part of your retirement plans, you may find it challenging to keep up-to-date with changes in the law and industry-wide.
A good property manager will always be up-to-date with the latest news and regulations, so you don't have to worry about ensuring you are consistently in the know. From changes in insulation laws to new evictions notice laws, they will ensure you're compliant so you can focus on your own life.
If you would like to learn more we have create the perfect guide for owning a rental property. You can download the FREE guide by clicking on the button below.
So there you have 10 reasons enlisting the help of a property manager could be worth your while. Want to find out more about how a property manager can help you with your properties? Book a free property assessment with a McDonald Real Estate specialist.
