Are you thinking about investing in residential property or already own one or more rental properties? If so, understanding the fundamentals of residential property management is essential for maximising your investment’s potential. Whether you choose to work with a property manager or not, it’s essential to understand what needs to be done to make owning a rental property a success.
What is Residential Property Management?
Residential property management involves managing rental properties that people live in, such as houses, apartments, and townhouses. It includes managing tenancies, ensuring compliance with tenancy laws, coordinating maintenance, and protecting your investment while maintaining positive relationships with tenants.
Differences Between Residential and Commercial Property Management
Property Types
- Residential: Involves managing individual homes, apartments, or multi-unit dwellings.
- Commercial: Includes office buildings, retail spaces, and industrial properties.
Tenants
- Residential: Typically involves working with individuals, couples, or families.
- Commercial: Deals with business tenants of various sizes.
Lease Terms
- Residential: Usually shorter, with fixed terms of 6–12 months initially, then periodic.
- Commercial: Often longer-term, spanning several years, and can significantly impact property value.
Day-to-Day Operations
- Residential: Focuses on tenant needs, tenant selection, rent collection, inspections, and property upkeep.
- Commercial: Includes lease negotiations, common area management, and compliance with commercial regulations.
Types of Residential Property Management
Residential property management varies depending on the type of property and the landlord’s goals. Common categories include:
Single-Home Management
Managing standalone homes or townhouses, ensuring they remain well-maintained while providing tenants with a safe and comfortable living environment.
Multi-Unit Management
Managing apartment complexes or multiple rental units, which requires effective systems for maintenance, tenant communications, and compliance.
Holiday Rental Management
Some residential property managers also oversee short-term rentals, handling bookings, cleaning, and tenant turnovers.
What Does a Residential Property Manager Do?
Residential property managers are crucial in protecting your asset while maximising returns. Their responsibilities include:
Tenant Management and Selection
Handling tenant enquiries, conducting viewings, screening applicants, managing communications, and addressing issues promptly.
Rent Collection
Ensuring rent is collected on time, issuing notices when necessary, and managing arrears professionally.
Property Inspections
Conducting regular inspections to identify maintenance needs and protect the property’s condition. Most insurance policies become void if 12-weekly inspections aren’t carried out.
Maintenance Coordination
Organising repairs and maintenance promptly to prevent small issues from becoming larger, more costly problems. Responding to tenants’ requests for maintenance and identifying if there is an issue, and what maintenance is required to remedy it.
Compliance
Staying updated on New Zealand’s tenancy laws and regulations, including Healthy Homes Standards, and ever-changing rules around tenancy lengths, types and notice periods.
Financial Management
Providing monthly statements, managing bond lodgements, and maintaining accurate financial records for your property.
Tenancy Management
Drafting and managing tenancy agreements, renewals and rent reviews, rent appraisals, and ensuring compliance with the Residential Tenancies Act.
How to Find the Best Residential Property Management Company
Choosing the right residential property management company is key to a stress-free investment experience. Here’s what to look for:
Experience and Reputation: Check reviews, ask for referrals, and review their track record. What is their Google review score? Are there at least 200 reviews and do they seem genuine?
Communication: A good property manager will communicate clearly and keep you informed. Do they have an online portal where you can check rent and finances whenever you want?
Transparency in Fees: Understand their fee structure and compare it with other providers to ensure fair value. Do they add their management fees to maintenance and other outgoings? If so this can cost you hundreds of dollars in hidden fees.
Use of Technology: Look for a company that uses modern property management software for efficiency and reporting.
Performance: Can they tell you their vacancy rate? Average days on the market? Rent arrears percentage? If not, choose a manger who can!
How Much Are Residential Property Management Fees in New Zealand?
Management fees vary based on the location, type of property, and services offered. Common fee structures include:
Percentage of Rent
Typically between 7.5%–10% of the weekly rent, collected as the management fee.
Letting Fee
Charged when a new tenant is placed, often equivalent to one week’s rent plus GST.
Additional Fees
These may include fees for advertising, inspections, or tribunal representation if required.
It’s important to ask your property manager for a detailed breakdown of all fees and compare these with the services offered. A quality property manager often pays for themselves through reduced vacancy periods, higher quality tenants, and ensuring compliance with regulations to avoid costly mistakes.
Find out more about our fees here, and what a property manager costs.
Why Work with Aspire for Residential Property Management?
At Aspire, we specialise in helping property investors across New Zealand manage their residential properties with confidence. We prioritise:
- Clear, proactive communication
- Low vacancy rates and low rent arrears
- Quality tenant placements
- Compliance with all regulations
- Using the latest technology to provide an exceptional service
If you own a residential property and would like to see how Aspire can help you reduce stress and improve returns, contact us now for a chat!
