Whether you’re heading overseas, live out of town, are too busy, or simply want to enjoy a passive income, hiring a property manager could be the solution you need.
Renting out your property can be a lucrative way to generate income and offset the costs of ownership, but managing a rental property is no small task. It can be time-consuming and complicated, which is where an experienced property manager can help.
In this article, we explore what a property manager does and if they’re worth the investment. To help you make an informed decision, we provide the insights and industry advice you need to navigate the rental market.
The role of a property manager
A property manager will attend to all the tasks that landlords usually do, such as arranging maintenance, collecting rent, and resolving disputes. They also help to attract and retain reliable tenants to make the property profitable year-round.
Key responsibilities of a property manager include:
Rental valuations
To determine how much your property is worth on your local rental market, a property manager will conduct a rental appraisal. This will give you an accurate estimate of how much prospective tenants will be willing to pay based on similar properties in the area, current demand, and your property’s condition. This valuation will help you make a successful return on your investment.
Finding reliable tenants
When renting out your property, one of the most critical steps is finding suitable tenants and making sure the house is rented promptly. Fortunately, a property management company will have an established website to advertise your property to thousands of tenants each month. They will also oversee tenant screening and reference checking, and handle communication with applicants, so you can relax knowing it’s taken care of.
Producing tenancy agreements
Your property manager will also manage the tenancy agreement. That means they know the local laws and regulations and how to set fair terms for rent, protecting you from potential disputes. They will also anticipate and address potential issues, communicate with your tenants, and handle the process of renewing or terminating a tenancy agreement as required. In a nutshell, a property manager will ensure that the agreement is fair and legal for both the landlord and the tenant.
Collecting rent and bond
Property managers assist landlords by handling the set up of rental accounts, sending out rent reminders, and collecting rent payments on time. They also assist in the handling of bond payments and ensure the money is lodged correctly. They handle disputes and issues that may arise regarding these payments, and ensure that all transactions are recorded and properly documented.
Resolving tenant complaints
When a tenant makes a complaint or raises an issue, your property manager will investigate and implement an appropriate solution. They will communicate with tenants to ensure they understand the process and the outcome. A property manager will ensure that the complaint is handled in a timely and professional manner, and will also document everything correctly. If a tenant takes a complaint to the Tenancy Tribunal, your property manager will have the expertise and documentation to support your case.
Handling legal issues and Healthy Homes compliance
When it comes to handling legal issues with a rental property, it helps to have an experienced professional on your side. A property manager will be familiar with the local laws and regulations, and well-versed in the compliance requirements for Healthy Homes in New Zealand. They can also handle any issues with tenants or the property, such as tribunal orders, evictions, or ongoing disputes. This includes following best practices and taking proactive steps before an issue gets out of hand.
Managing property maintenance
Your property manager will schedule regular inspections, identify any repairs that need to be made, and coordinate with contractors. They will ensure repairs are done quickly, efficiently, and at a reasonable cost. As they are the main point of contact for tenants, your property manager will also be on call to handle any maintenance emergencies.
Regular inspections
A property manager will also arrange regular inspections of your rental property. This involves checking the overall condition of the property, identifying any repairs that need to be made, and ensuring that the tenants are meeting all your conditions. The property manager will complete thorough documentation for each inspection and communicate with both you and the tenant accordingly. These inspections are essential for maintaining compliance with many landlord insurance policies.
Accounting and reporting
A key responsibility of a property manager is to keep track of expenses and income to ensure the property is generating a profit. They will create statements and end-of-year reports factoring in all repairs, maintenance, and marketing. These reports will help you understand the property's financial performance and make informed decisions in the future.
Managing your own rental property
It can be tempting to manage your rental property yourself, particularly if you want to avoid paying a management fee. However, many landlords find that the day-to-day responsibilities and stress of managing a property counteract the benefits, leading them to enlist a professional.
There are some situations in which managing your own rental property is viable. For example, if you live locally, have maintenance skills, and have the time, the extra work may be more achievable for you. However, homeowners in the following situations will benefit from hiring a qualified professional:
Living out of town
If you live further than a short drive away from your rental property, it will be difficult to complete regular inspections and maintenance. Additionally, your communication with tenants is limited to phone calls and emails, which can make it challenging to resolve disputes.
Seeking passive income
If your reason for having a rental property is to generate passive income, the time and energy required to manage it will be a drawback. By hiring a property manager, you can rest assured that everything is under control. The commission you pay the property manager will be well worth the peace of mind and extra time you have in your day, and the fees are tax deductible.
Travelling overseas
If you are travelling, a property manager will take care of everything so that you can enjoy your time away. This way, you can relax knowing your property is in capable hands, and that expenses are covered in your absence.
The benefits of using a property manager
Using a property manager has several benefits for landlords. Firstly, they can handle all the day-to-day tasks associated with renting out a property, such as collecting rent, managing maintenance and repairs, and dealing with tenant complaints. In other words, a property manager will save you a significant amount of time and stress.
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Stress-free passive income.
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Professional management.
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Attract and retain quality tenants.
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Have fewer vacancies.
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Receive accurate valuations.
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Get local expertise.
If you’re looking for a reliable, trusted, and professional property manager in Taranaki, McDonald Real Estate is here to help. With over 750+ properties in our rental portfolio and a large network of suitable tenants, our team will quickly find the right match for your property.
