Some landlords enjoy the hands-on nature of managing their own rental portfolio, especially if they have the time and knowledge to avoid the pitfalls.
However, we’re often approached by landlords who have had enough of trying to manage their own properties and want us to do it for them. They’ve recognised that their lack of time and skill is costing them, not just in lost rental income, but also in reduced capital value.
The difficulties experienced by DIY landlords often fall under one of three headings:
To manage a property successfully, you need a thorough knowledge of tenancy laws and regulations. These cover topics such as:
- Tenancy agreement – fixed-term or periodic
- Bond lodgement and refund
- Healthy homes standards
- Setting and increasing rent
- Terminating a tenancy
The Residential Tenancy Act also covers rules around discrimination, rent receipts, quiet enjoyment, anti-social behaviour, the sale of premises, landlord’s right of entry, locks, and abandonment of premises.
The healthy homes standards set minimum requirements for heating, insulation, ventilation, moisture ingress and drainage, and draught stopping. Private landlords need to comply with these standards within 90 days of a new or renewed tenancy from 1 July 2021.
Breaching the tenancy laws can result in harsh penalties against a landlord. A good property manager will always be up-to-date and informed about complex law changes and will ensure your property is rented in full compliance with the Residential Tenancies Act.
Your property manager can also make it easier for you to meet your tax obligations. You need to keep accurate records for your residential rental property to calculate your income and expenses – and these records must be kept for seven years, even if you sell the property in that time.
A major benefit of having your rental managed by a property manager is that we prepare those records for you. We provide detailed bi-monthly financial statements, including copies of all invoices including repairs and maintenance, which are tax deductible.
You may be lucky enough to have a relatively new, low-maintenance property, and to find an ideal tenant through trusted friends or family members.
Most landlords aren’t that lucky. Finding good tenants can take considerable time and energy, and choosing poorly can be expensive and extremely stressful. We’ve heard plenty of horror stories from landlords who learned the hard way that prospective tenants sometimes lie!
We use a thorough selection process that includes proactive marketing, tenant screening, and reference, background, and credit checks. We put in the time to secure tenants who will respect your property and pay the rent on time (and we have the knowledge to deal firmly and fairly with those who don’t).
Your property manager will look after all aspects of the tenant-landlord relationship, from broken windows to blocked drains, to complaints and unpaid rent. We carry out quarterly inspections and handle any phone calls from tenants reporting a broken window or failed appliance. We deal with the tradespeople and contractors and have the contacts to get work done quickly and competitively.
Whatever you spend on a property manager is likely to save you money in the long term, and often in the short term. Professional property managers have access to comparative data about the market and can advise on the highest possible rent to charge for your property.
Your investment will only be profitable if rent is paid on time and your tenants need to know that this is non-negotiable. We have systems in place to collect rent efficiently and objectively, so you won’t have to listen to excuses and chase late payments or, in the worst-case scenario, evict your tenant.
If your property does become vacant, having a property manager will help secure a new tenant quickly and get the rent coming in again.
They’ll also save you money on maintenance and repairs, not only by catching potential problems early through regular inspections, but also through discounted contractor rates.
Sometimes, serious issues or conflicts arise between tenants and landlords. We can help mediate these in line with the law and the tenancy agreement, and potentially avoid expensive legal action or fines.
If you want your investment property to provide a truly passive income, then having it managed by professionals is the way to go. Much of what we do you will never see nor know about, because it happens in the background. All you know is that the rent is paid, and your property is looked after, and this is exactly how it should be.
For an obligation-free assessment of your property, get in touch with us today.