Owing a rental property in New Zealand is often seen as the next step after buying your own home on the journey to financial freedom and success. It’s a great way to generate additional income, but managing this income stream can be time-consuming and complex.
Many property owners are overwhelmed by tenant issues, tenancy laws, chasing rent payments, and 12-weekly inspections. A professional property management service can significantly impact your investment’s success and your happiness!
The Benefits of Using a Property Manager
1. Expert Knowledge of Tenancy Laws
Tenancy laws are constantly evolving, and staying updated with the latest regulations can be challenging for property owners. A professional property management company ensures your rental property complies with all legal requirements, including the Healthy Homes Standards, which set specific criteria for heating, insulation, and ventilation in rental properties.
2. Finding and Screening Tenants
A property manager handles advertising your investment property, conducting property viewings, and selecting suitable tenants. They have access to screening tools and databases that help identify reliable renters, reducing the risk of rent arrears and other tenancy issues. Did you know that Privacy legislation limits the amount of information you can ask an applicant? For example, you can’t ask for proof of income; you can only ask for evidence that rent can be paid.
3. Efficient Rent Collection and Financial Management
Ensuring you receive rent on time is one of the most crucial aspects of managing a rental property successfully. A property management service handles rent payments and provides detailed financial statements. This gives property owners a clear overview of their rental income without the hassle of chasing tenants for payments. Do you know how to issue a 14-day notice? At Aspire, our 7-day rent arrears are under 3.5%. When interviewing potential property management companies, always ask what their rent arrears percentage is. If they can’t tell you, don’t hire them.
4. Handling Maintenance and Repairs
A well-maintained rental property attracts quality tenants and ensures long-term occupancy. Property managers coordinate all necessary repairs and maintenance, working with trusted tradespeople to do the job efficiently and cost-effectively. This saves property owners from dealing with emergency calls and unreliable contractors. Did you know that as a landlord you are considered a PCBU in the eyes of the Health and Safety at Work Act? Read more about it here.
5. Conducting Regular Property Inspections
Routine property inspections are essential to ensure tenants are taking care of the rental property and to identify any maintenance issues before they become costly problems. A property manager schedules and conducts these inspections, providing detailed reports and ensuring that your investment property remains in good condition. Did you know that most insurance policies become void if you can’t prove you carried out an inspection within the last 12 weeks? At Aspire we ensure all routine inspections are carried out in the correct timeframe and are extensively documented in case they are needed for an insurance claim.
6. Managing Tenants Moving In and Out
From the initial viewings and tenancy agreement to the final property inspection when tenants move out, a property manager takes care of the entire process. They ensure that bond refunds are handled correctly and that any necessary repairs or cleaning are completed before new tenants move in. Entry and exit inspections are vital when proving any damage caused above usual wear and tear.
7. Minimizing Vacancy Periods
A professional property management company has the expertise to market your property effectively, reducing the time it remains vacant. Getting the rental price correct is vital to getting your property rented with minimum vacancy. Just one-week vacant can cost you between $500 – $2000! (depending on what your property rents for). At Aspire we use three different databases, and our experience in the market, to advise you of the correct rent appraisal for your property.
8. Peace of Mind for Property Owners
Perhaps the most significant benefit of hiring a property manager is peace of mind. Whether you own a single residential property or multiple rental properties, having a professional handle the day-to-day responsibilities allows you to focus on other priorities, knowing your investment is in good hands. At Aspire we have calls monitored 24/7, so if a pipe bursts in the middle of the night, we are the ones who take care of it, while you sleep!
Using a property management company for your rental properties offers numerous benefits, from legal compliance and rent collection to maintenance and tenant management. While self-managing may seem like a cost-saving option, the challenges and potential risks often outweigh the benefits. For property owners looking to maximize their rental income while minimizing stress, hiring a professional property manager is a smart investment in the long-term success of their real estate portfolio. At Aspire, we often get hired to clean up the mess of a self-managed property gone wrong. Of course we are happy to help! But the best option is to hire us before the costly mistake! Contact us now if you’d like us to manage your property.
