Many landlords tell us that they do not require a property manager – That they are more than capable of looking after their rental properties themselves- This may well be true, but before reaching that conclusion please consider the following issues:
- Pre- investment Assistance At Quinovic Merivale we offer free rental assessments on properties that investors are looking at purchasing as a rental property. This assists them to determine both the suitability of the property and the potential economic returns prior to purchasing.
- Tenant Selection Having the right tenant is the difference between having a successful and an unsuccessful investment. We insist on previous landlord references along with employment references. We have access to the previous rental history of the applicants- not just rent payments but also any reported damage or problems. We complete full checks through Tenancy Information New Zealand
- “Arms length” Relationships We must remember that whether you are doing it yourself OR using a property manager- investing in property is a business. Many owners tell us how they have become “friends” with their tenants- this can make things difficult if something goes wrong.
- Return on Investment Every Landlord hopes to make a profit from the rental of their property. But this profit comes from several factors and sometimes the property owner is not best suited to maximise these. These factors include constantly reviewing the current market; limiting down time between tenancies; following up rent arrears in a timely manner; conducting quarterly inspections; and many more. Quinovic’s computer systems are designed to support these issues and ensures that we have that information in front of us on a daily basis.
- Inspections Many owners tell us that in reality they very seldom go and do inspections and when they do it is unlikely that they are thoroughly documented. This lack of formal documentation makes things very difficult if issues need to go to arbitration. Almost more importantly some insurance claims can be turned down if the right documentation is not in place and at regular intervals (policy specific- please check your cover).
- Financial Records The computer systems used by Quinovic Merivale provide landlords every month with full business records. All income and expenditure is clearly itemised. The end of financial year records are in a format that can be used for taxation purposes with no further input necessary. This represents a substantial saving in both time and cost to owners.
- Time and Cost The most common reason we hear from landlords for not wanting to use a Property Management company is that they “have the time” – More often than not this is because they do not place any value on their own time. property at say $400 per week would cost around $140-$150 per month to have managed. Depending on the owners circumstances this may represent 1-6 hours income. So if an owner spends more than 1-6 hours per month managing their rental property then they are losing income opportunities. A landlord needs to keep a tally of how long they are spending on advertising; showing the property; reference checks; inspections; arranging maintenance etc- The answer may surprise!
REMEMBER- PROPERTY MANAGAMENT IS A BUSINESS- NO DOUBT YOU USE THE EXPERTS IN OTHER AREAS OF YOUR LIFE- MAYBE ITS TIME TO USE THEM TO LOOK AFTER YOUR ASSETS