Many landlords engage property managers to help manage their investment properties. The intention is to make sure their property is generating an income while, at the same time, being well looked after. Seasoned property investors will agree that skilled property managers can add significant value to an investment and that engaging with a good property management company is worth its weight in gold.
As a property manager is responsible for the care and management of the property and the fair treatment of the tenants, surely there must be some control over who can become one? After all, would a cowboy property manager ensure the house is inspected regularly, make sure the paperwork is compliant, achieve a fair market rate, treat the tenants with respect and make sure that any missed rent is dealt with correctly under the new legislation?
Real Estate Agents are licensed and regulated by the Real Estate Authority that monitors their professionalism and protects real estate consumers. So, while the law and a governing body hold real estate agents accountable, nothing but bad Google reviews protect landlords and tenants from a dud property manager.
When the industry was deregulated in 2008, McDonald Real Estate chose to keep its property managers as members of REINZ. This means we have continued to operate in a professional manner, however, the industry is riddled with reports of unprofessional behaviour by those who set themselves up as property managers’ without any experience or knowledge of the law.
Recently, the Real Estate Institute of New Zealand (REINZ) has been pushing for
regulation of property managers. This is a good thing for tenants, landlords and property managers because it helps protect all parties from unethical and illegal practices. Without regulation, there is no ethical framework for all parties to work from. Creating a set of standards that must be met only adds to the credibility of the industry. And tenants can trust that their property manager is not going to do anything unethical – if they did, it would be a huge risk.
It has been proposed that property managers should meet a certain level of
educational requirements and be responsible for their actions if they don’t adhere to
set standards and it is also proposed that they must have a New Zealand Certificate
in Residential Property Management.
Even though, legally, property managers do not currently have to be regulated, there are
important factors to consider if you are looking for a property management company to
manage your investment. Below we have outlined our top five key benefits for choosing a licenced Real Estate company for your property management needs.
Run a Trust account
Having tenant and landlord transactions paid into a trust account with McDonald Real Estate offers one of your biggest safeguards. By law, real estate companies are required to have all monetary transactions paid into a trust account. Each receipt, payment, and transfer must be promptly and clearly recorded in the ledger for each client so the funds can easily be traced back and forth. Stories of unethical property management companies putting rent into personal bank accounts are common. It is a protection for you if your property manager is part of a reputable real estate company.
Experience
The property managers that are part of McDonald Real Estate, are held to a high standard both within the company and as part of the Real Estate industry. McDonald Real Estate has been around for over 100 years and during that time they have survived many global economic highs and lows, a worldwide pandemic as well as experiencing many housing crises! Their experience and knowledge have been handed down through the generations of the McDonald Real Estate family.
Regular training
Our property managers are expected to be up to date on all aspects of the property
management industry. McDonald Real Estate supports its team by providing them with the opportunity to attend relevant training days that not only help educate them on new
legislation but to provide the team with the right training to help protect them from
challenging situations.
Reputation
McDonald Real Estate offers you the protection of its reputation and believes that it is the putting right that counts in challenging situations. We hold all the right insurances for the rare occasions when things go wrong.
REINZ and NZ Realtors members
McDonald Real Estate is a member of both REINZ and NZ Realtors. This means that they are held to a high level of professional excellence through the REINZ Code of Practice. When dealing with a REINZ member, you can be confident that you are working with a highly trained and professional property manager. REINZ and its members are committed to developing and enhancing the real estate industry by providing excellent customer care and upholding excellent standards of practice that are open, ethical and honest. This information is publicly available, and the REINZ do hold their members accountable.
With the impact of poor property management practices along with the new tenancy regulations and healthy home compliance, it is important for landlords to remember the long-term benefits of owning an investment property. If you are currently self-managing your properties and would like to make sure you’re well protected if anything were to go wrong, don’t hesitate to contact our team to discuss your situation.
The team is always willing to help share their experience and knowledge and can even provide guidance if you’re currently trying to navigate the choppy waters of increased legislation or challenging tenants. Contact us by clicking on the link below to see how we can help.
