Despite being financially rewarding, owning a rental property is a big commitment. You need time and effort to keep it in good, rent-worthy shape and fulfil your legal obligations as a landlord.
If you own a property, you are likely to want to use it to your advantage and renting it out (in part or entirely) is a good option. But if being a landlord is not your sole responsibility, managing a rental property along with juggling a full-time job and family can be taxing. That’s why many landlords choose to use property managers.
From pre-screening rental applications to ensuring that the house is properly maintained, collecting rent and so on, a qualified property manager acts as a buffer between landlord and renter.
Owning a property is a financial advantage, and when utilised effectively, it can be a significant source of income. Reliable and experienced property managers are able to help you maximise your returns and reduce risks.
Tenancy laws and regulatory bodies
Property managers know their way around laws, regulations and regulatory bodies related to tenancy matters. This includes understanding how the Tenancy Tribunal operates and being familiar with the provisions of Residential Tenancies Act (also known as the RTA). Knowledge of how the RTA works is especially important when it comes to matters like abandoned goods, and power of entry.
The Healthy Homes Standards passed into law in July 2019 and this is also an
important act for landlords and renters to understand their obligations and well as their rights. The Unit Titles Act 2020 and the Body Corporate Rules are other significant documents to read. Experienced property managers know how to use this knowledge to manage your property best.
Carrying out property inspections as per protocol
Inspecting the property is an important duty of a landlord and it needs to be done routinely. Property managers know the proper legal protocol for inspections so they can conduct them by the book. This is a good way of ensuring that you’ve dotted your i’s and crossed your t’s. With their knowledge of properties, they can also put together a maintenance plan for your rental. This way your property will be kept in good condition and reduce the need for expensive repairs, saving you money in the long run.
Knowledge of the property market
Property managers keep an eye on developments in the property market and have a good understanding of the vagaries of Auckland real estate. This is not just about pricing trends but also on legal developments that may affect landlords or tenants. They will also be familiar with the requirements on raising rents, bond legalities, and other financial aspects of a rental property.
Dealing with the unexpected
As in many aspects of life, you may be faced with unexpected situations as a landlord. For instance, if you have recently discovered that there is asbestos or methamphetamine on your property, how do you go about dealing with the situation? Or if a sudden maintenance problem crops up then how do you decide who pays for this? Experienced property managers are adept at dealing with these issues and have the know-how on the correct procedures that need to be followed.
A property manager should have everything from the appropriate templates required for tenant notifications to a roster of reliable contractors/ builders who can be depended on to deal with maintenance issues.
Protecting your interests
Record keeping is a key responsibility of landlords and you need to keep records of not just contracts and rent receipts but also of maintenance work and renovations that may have been carried out on your property. It is important to keep both, photographic and written evidence of the condition of the property before the new tenants move in and when they leave.
A manager for your property also has enough knowledge on insurance matters to advise you on the plans that are best suited to your needs and that can cover you in uncommon circumstances. For instance, in case the cost of the damages made by a tenant exceeds the bond that they have paid you.
A wider pool of prospective tenants
Property managers like Morrison Property for example have the necessary means to find good tenants for your rental. They can screen a wide range of applicants, saving you plenty of time and effort. They are able to also suggest what the legal requirements are in terms of tenancy matters like allowing pets to live on the property or adding a flatmate to the agreement. They should also have access to resources for running thorough background checks and credit checks on potential tenants.
Asking a property manager to see to the everyday running of your rental offers plenty of advantages and the key benefits for you include saved time and effort while maximising your profits. This gives you the opportunity to focus on your career or even increase your property portfolio by finding good investments.