Why owners want to manage their own property and the 10 cost effective reasons why they don’t!
Keeping a good tenant is critical for a property investor. One of the most common reasons why good tenants leave a rental property is because the landlord does not provide a high level of service as the landlord is often too busy. By employing a professional property manager, landlords can be assured that all of their tenant’s requirements are dealt with promptly and this will in turn reduce vacancy rates.
Because of the growing trend towards litigation, people who privately lease their properties can open themselves to litigation if they fail to discharge their legal responsibilities in relation to the investment property – i.e. fixing items in the investment property that could cause personal injury. A property manager is fully briefed on these legal responsibilities and this offers additional peace of mind for the property investor.
Many first time investors tend to overestimate the weekly rent they should charge which results in lost income through a high vacancy rate. A property manager will be able to give an independent assessment of the correct rent for a rental property and ensure the property is rented for longer.
A good property management company will have access to information checking on prospective tenants that private landlord’s do not and many tenants are aware of this too! Selecting the right tenant is critical for a landlord because a good tenant will pay their rent on time and look after the property.
Many prospective tenants contact local property managers directly for information about properties for lease. In addition, a property manager will also have access to cost effective internet marketing which is where 90% of enquiries comes from.
Viewing the property:
Showing prospective tenants the property takes time because people wanting to lease a home generally want to view the property after work hours – such as in the evenings or over the weekend. Private landlords may be more restricted in their time and therefore may not be able to find the best tenant for the property in the fastest time.
Auckland Property Management has the latest updated legal documentation that provides protection for all parties in conjunction with the Residential Tenancies Act 1986. Standard forms are available to private landlords but often these are not as comprehensive as a professional property management company.
A property manager will conduct regular video property inspections to make sure the investment property is properly maintained and take action if it is not. Maintaining the value of the asset should be a key consideration for investors and that is why regular property inspection reports are necessary.
Termination of tenancy:
Problems can often arise when the tenant wants to terminate the contract i.e. lack of notice or failure to leave the property in the same condition as when first leased. A property manager will ensure that the contract is properly terminated and that a new tenant can be sourced quickly thereby reducing vacancy rates.
A professional relationship:
Finally, the relationship between the tenant and the owner should be on a strictly professional business basis. Investors who manage their investment properties tend to develop friendships with their tenants meaning that problems can arise when the tenant fails to pay their rent or maintain the property. By using the services of a property manager, the relationship is kept on a business footing which will be financially beneficial for the investor.
To find out more about why you should use a property manager, contact us on (09) 638 2500 or fill out the form below and one of our team will get back to you: