Self-managing your investment property is definitely possible. However, if you’re considering managing your property in addition to juggling a full-time job and other commitments, you may be surprised at the sheer amount of work and responsibility involved. Below, we’ve outlined some of the common challenges you may be faced with when managing your own rental property (and how a professional property manager can help avoid these stressors).
1. Professional Presentability
How you present your property as a private landlord is a big deal. Self-managing your investment takes a considerable amount of time, and it’s important not to cut corners. It’s important to present your investment professionally so that tenants take you seriously. If the tenants get a whiff of unprofessionalism, they may end up going elsewhere, or worse – take advantage of you!
2. Marketing your Rental Property
Getting your investment property in front of prospective tenants is something that private landlords need to consider. Listing the property online, taking bookings for viewings, managing viewings, and answering any relevant questions are necessary for getting your rental to market. Professional property managers are experts in marketing rental properties. They have networks for advertising, are seasoned in rental viewings and have the knowledge to answer specific questions.
3. Selecting a Quality Tenant
Choosing the right tenant is a vital step in preventing expensive learning experiences. A rigorous selection process is time-consuming, and often requires specialised resources and knowledge. Compare this with experienced property managers who know what questions to ask, what information to collect, and have experience in selecting high-quality tenants. Signing up a bad tenant could end up hurting your back pocket!
4. Rent Collection
Ensuring cash flow is essential to any business, and it’s no different with an investment property. When self-managing your property, you’ll be responsible for collecting the correct amount of rent, on time, so that you can continue to operate (i.e. pay your mortgage!). Many private landlords struggle with issues surrounding rent collection, especially if they get too friendly with their tenants. Property managers on the other hand are experienced in developing efficient rent collecting processes, and responding efficiently and professionally should an issue arise.
5. Legal Requirements & Rental Legislation
The New Zealand government make changes to the Residential Tenancies Act periodically. Therefore, ensuring you are knowledgeable across these changes is essential in managing your property. Recently, the government introduced the Healthy Homes Standards. Following this, many private landlords were slow to become compliant, meaning they now face large fines of up to $4,000. Professional property managers are experts in local and national tenancy laws, meaning you don’t need to worry about any legal responsibilities.
6. Property Maintenance
When self-managing your property, all the responsibilities fall on you. This includes physically maintaining the property. Broken fixtures and issues with electricity or appliances are particularly common, as you may be aware. When maintenance is required, sourcing the tradespeople or undertaking repair tasks yourself can take a lot of time and cost money. Professional property managers can arrange for property maintenance and repairs, saving you time and stress. Furthermore, professional property managers often have access to discounts or trade deals that aren’t available to private landlords, which saves you money in the long-term.
7. Overall Stress
Self-managing an investment property can be a stressful task. Managing all the above points as well as anything else that might crop up is demanding on your time, finances and mental load. When being a landlord becomes too stressful, you may question whether the whole endeavour is worth it at all. Professional property managers remove the stress and emotion of managing your own investment property. Employing a professional property manager who is experienced in looking after rental properties gives you peace of mind that everything will be taken care of.
How Rotorua Rentals Can Help
Rotorua Rentals are dedicated experts, offering a comprehensive property management service. We look after tenant selection and vetting processes, rent collection, legislation compliance, maintenance and more. Take the stress out of being a private landlord and get in touch to find out how we can help manage your investment.