Finding the right property manager for you

Choosing the right Property Manager for you - Know the value of a good one!‍

Given the recent amendments to the Residential Tenancies Act, we are finding that private Landlords are taking a step back and allowing a professional to take the reigns when it comes to managing their investment properties.

The implications (and fines!) for not following the new laws have increased significantly and property is often our clients biggest asset that needs protecting.

As the saying goes, a GOOD property manager is worth their weight in gold.

So if you are in the market for a new property manager, I have composed a few tips and tricks below that I hope will help you find your perfect match!

Firstly, meet with a few different property managers to see who you connect with - this is about building a positive working relationship and feeling like a team so if you don't “click” with them, it is likely that they are not the property manager for you! If possible, I also recommend that you attend a viewing being held by the Property Manager (or letting agent) - this will give you an insight in to how invested, flexible and attentive they are when it comes to renting your property. Do they hold regular viewings, including after hours? Are they personable? Do they ask and/or answer questions appropriately?

Below are a few questions that you may find helpful to ask when you are meeting with a new prospective property manager.

How many properties do they manage / do they have a capped limit for number of properties they would manage?

Personally, I would not manage any more than 80 properties at any given time. This is because I like to have a very hands on approach. For my clients I do everything myself; from holding viewings, vetting tenants to inspections, daily banking and owner accounts and payouts. I choose to have a portfolio that is smaller than the industry standard as I feel that this allows me to do my job to the highest standard without the risk of burn out or dropping the ball.

There are a few different styles of property manager- the main two being portfolio managers and pod systems.

Of course, there are pros and cons to each of these styles.

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The pod system allows 2-3 property managers, usually of different experience levels, to manage a larger portfolio of up to 300 properties. This is a great way for a junior property manager to learn the ropes and also ensure a smooth period if/when one of the property managers is on leave, unwell or leaves the company as there are other familiar names for both tenants and landlords.

The portfolio manager is my preference as (in my opinion) it allows the property manager to develop strong relationships with both tenant and landlords as well as being across all aspects of the property and any issues. Realistically, portfolio managers should be capped at around 120 properties.

Experience level & qualifications?

Unfortunately, the property management industry in New Zealand is currently unregulated.This means that anyone can claim to be a professional property manager. I would highly recommend employing a property manager who has obtained the New Zealand Certificate in Residential Property Management (level 4).

As no two days are the same in the property management world, experience is vital! Burnout is high in the industry and it is essential that you have a resilient, knowledgeable property manager to not only protect one of your biggest assets but also you as a landlord. Especially, with all of the recent changes to tenancy law, it is important to find a property manager who has a sound and thorough understanding of the Residential Tenancies Act including the recent changes.

Tenant selection process?

With the recent amendments to the Residential Tenancy Act and restrictions on ending a tenancy, tenant selection is now more important than it has ever been.

I prefer not to use a letting agent as I like to meet any prospective tenants myself and often feel that letting agents aren't as invested as the property manager is to find the right tenant. Obtaining credit checks and reference checks for all applicants is paramount. I like to speak with (where possible) a current landlord, an employer, a character reference and a previous landlord - where I usually get the most honest feedback from! However, it is important here to also be aware of privacy laws which have been highlighted in the media in recent months and not ask any questions which may breach the prospective tenants privacy. It is also important to ask the prospective property manager who grants the final approval of the tenant. In my opinion, this should always be the landlords call but it isn't uncommon for the property manager to make this decision on the owners behalf.

Management rate and hidden fees?

I cannot stress the importance of finding a competent property manager - I have had a client who chose to go with a cheaper property management company and within 6 months, they came back to me. It really is true that you get what you pay for!

Property management fees typically vary from 7.5% to 10%+GST. The fee is deducted from your weekly/monthly rent and usually does not include a letting fee when new tenants are secured. It is also important to check the fine print for any additional fees. It is not uncommon to be charged extra for inspections, accounting and maintenance. At Vogue we choose to provide an all inclusive service to our clients so there is full transparency and no hidden costs or surprises. Don't forget, having a property manager is a tax deductible expense as well!

Of course there are many other important questions to ask when employing a property manager and these should be based on your own exceptions and priorities but I hope the above gives you a starting point and food for thought. I have included aspects that, as both a property manager and property owner, are important to me.

So, if you're in the market for an award winning, experienced and qualified property manager in Auckland who loves what she does -  give me a call!

Nikki Dixon

Vogue Property Management

nikki@vogue-pm.co.nz/ 021 973 161

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