Are property management companies worth it?
Crockers | Reading Time: 3 Minutes | February 2020
Are property managers worth it?
It will always be worth investing in property- but are property managers worth it?
It may feel like “one more expense” for your new rental property. However, hiring a property manager could save you a lot of money (and stress) in the long run.
In this article we will discuss what property managers actually do for you, what some of the pros and cons are, as well discussing what legal property manager regulations you can expect.
What do property managers do?
So what do they do? What do they do that makes property managers worth it?
If you want to hire a property manager, here are some things you can expect:
- Rent payment and management- This is one of the key obligations for property managers- making sure you get paid! They will also take care of bond lodgements, late payments, and any other issues that arise. This means that you get paid without wasting time chasing tenants
- Managing tenants- Dealing with changing and ongoing tenants takes time- time that you could be spending elsewhere. A good property manager will take the time to vet potential tenants, address any of their concerns, and do all the background checks necessary to make sure you find the best tenants for your investment
- Maintenance issues- Keeping up to date with maintenance issues will do two things. Firstly, it will keep your tenants happy and fulfill your obligations as a landlord. Secondly, it will help maintain the value of your property for longer
- Keeping up to date with policies- Property management companies (like Crocker’s) keep up to date with all the latest housing policies so that you don’t have to. They have a working knowledge of things like the Residential Tenancy Act, Tenancy Tribunal, Healthy Homes Act and Body Corporate rules- all things that landlords need to keep up to date with
- Give knowledge on finances - With Crocker’s Property Management, it’s not just the bare minimum rental management- we can also give guidance on things like Landlord insurance and maintenance costs.
Ultimately, property managers are worth it if you want to enjoy your investment property WITHOUT sinking administration time into it.
Pros and cons of property managers
There are pros and cons to every investment decision. Ultimately, deciding whether property managers are worth it will come down to whether your time is important to you, and whether you can find a property manager that will look after your investment like it is their own.
Below are some of the pros and cons of hiring a property manager. Although there are some cons, many of these can be mitigated by finding the right people to take care of your rental property.
- Property managers will keep your inspections up to date and make sure the value of your property is maintained during the tenancy
- You can spend less time on how to find the perfect tenant and more time earning income from your investment
- If something needs fixing or something goes wrong, your property manager will be the first point of contact with tenants (which is especially important if you have multiple properties and tenancies to keep track of)
- A property manager can reduce the expenses related to owning a property by ensuring that you are up to date with regulations, chasing rent in arrears, and wasting less time that could be spent more productively
- There is currently no official regulations in New Zealand (which is why it is so important to find the right property manager!)
- A property manager is an expense that reduces the amount of monthly income you get from your investment- putting in the time and effort yourself does result in more income overall if you have the time to put into day-to-day tenancy issues
Is there regulation of property managers in New Zealand?
Currently, there is no official regulation of property managers in New Zealand. This is something that is still in discussion in the New Zealand government, but not a political priority.
However, that does not mean that property managers are not worth it!
If you are thinking about hiring someone to look after your investment property, there are a few things you can look for to protect yourself (and your rental).
Firstly, ask yourself if they make you feel secure.
Things to look out for initially could include their processes for communication and onboarding you as a client, their intimate knowledge of policies and regulations, and their consistency in quality and professionalism.
Secondly, they should also have a streamlined process for dealing with your tenants.
Quality property management companies should have efficient systems in place for maintaining your property.
They should also have systems that keep communication streamlined. They will have answers for any situation that arises. Staying on top of these processes means that your property will be running at its highest value!
You know that your rental is in good hands when they:
- Have an efficient system for moving new tenants in and out
- Keep you informed about regular inspections and any issues/complaints without creating more work for you
- Are transparent about their process and any finances associated with running your property
Lastly, you should look for testimonials from other property owners.
Consistency is one of the best indicators of a quality property management company. You want to know that they are reliable and have a repeatable process, and testimonials from other clients are an easy way to research this.
So, are property managers worth it?
If you are looking for long-term investment and growth, a property manager is worth the expense, but only if you find the right one!
Securing capable, competent Property Management in Auckland is easy when you engage with Crockers. Crockers have been one of Auckland's leading Property Rental Agencies for 45+ years and are experts in Auckland Property Management. Peace of mind is important and you need to be able to have total trust in the people managing your property investment. At Crockers we get that- Click to find out more about our Property Management Services in Auckland!