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Property managers, the people you trust to manage your property, your tenants and most importantly your money.
Management companies say they act as an enforcer to uphold the interests of the landlord and the best property managers do exactly just that. However, there are some property managers that are bad at their jobs.
Here is a list things of what to look for to help you spot a bad property managers from the good ones.
1) Always check the cost.
- 8.5% is the national average in which property managers charge (including GST of course!) Per property, per week on every rent.
To put this into perspective, for a property earning $500 per week, the cost is roughly $42 per week. This is about $170 per month or over $2,000 per year.**
This of course, does not include all the hidden cost and added fees property managers charge. For example, some may charge for maintenance, repairs and pretty much any money that is handled by the manager in the entire course of looking after the property. This might also include paying a 10% administration fee just for changing and replacing light-bulbs!
Try and work with a property manager or management company that is transparent when it comes to their fees. If they are transparent it means that you might not get blind-sided by the hidden or extra fees that some property management companies charge.
2) Make sure they are experienced.
Zero oversight. Zero regulation. Zero accountability. No code of conduct, no police checks and no central governance to check whether property managers are doing a good job or a bad job. Usually, this is up to the property management companies to set up rule and regulations. Thus, you should check out if the the property managers affiliate company has those rules and regulations enforced for their employees.
Here is one example of one bad apple.
3) Be sure they are consistent.
Because there is no accountability or oversight, property managers might be inconsistent in terms of how well they do their job. Yet, landlords are paying a hefty fee for property management services that are sometimes inconsistency.
To combat this, there are some voluntary membership organisations attempting to pull up standards. A property management company might also belong to REINZ which has a code of conduct so try to look out for it. A very good start to keep property managers on toe.
However, in terms of addressing professionalism and accountability in the industry, there is not much other than relying on the Tenancy Tribunal or Disputes Tribunal.
It is no wonder that the majority of landlords in New Zealand prefer to manage property. 60% of all New Zealand landlords choose to manage themselves.
The reason why the 40% choose to use property managers in the first place is due to the fact that managing a property is difficult and complex or that they’re overseas. Requiring time and energy to manage it properly. Ensuring rents are paid when due, organising maintenance and regular property inspections.
That’s already enough to put a LOT of owners off hands on property management. Hence the large number of property managers in New Zealand.
Are there other solutions?
We need innovators to innovate the real estate industry. To change how the current property management is handled. We need to give proper tools to both landlords and property managers that makes the rental process a lot easier to do. Tools that are cheap, simple and are reliable.
With the right tools landlords and property managers can be both efficient and reliable, creating good professional relationships with their tenants, and enticing tenants to stay on at the property. Because the best tenants always want efficient and reliable landlords and property managers.
Imagine something that could save landlords and property managers time, energy and money that automates nearly every single aspect of managing a property with a single touch of a button. Taking care of your rental needs including finances, property taxes, rent collection, rent arrears, rent tracking and so much more.
Kitt is a digital property management platform for self-managing landlords and property investors. Covering everything from ordering jobs, checking rent, managing inspections, accounting and loads more.
Kitt is a platform for smart landlords, who want a simple to use platform use technology to make their investments more efficient.
Come and check out what Kitt’s all about. www.kitt.io