Tag Archives: Property Management
Managing your own investment property comes with quite a bit of expense. So when it comes to routine maintenance on the property it can be tempting to consider making the necessary inspections, repairs and fixes yourself, rather than using a tradesperson who could end up costing you more…
It sounds like a money-saving idea in theory, but in reality, doing DIY property maintenance on your investment property could actually cause you quite a few headaches.
Headache 1 – Knowledge of tenants’ rights
You might be skilled enough to do maintenance and repairs on your property, but are you aware of, and up-to-date with a tenant’s rights when it comes to repairs and maintenance? Some issues are classed as urgent in legislation, and need to be dealt with as quickly as possible.
An example would be something essential breaking, like toilets or anything that stops the flow of water to the property. When things like this occur they’re generally classed as urgent, and need immediate attention.
Headache 2 – On call for emergencies
If a situation like the above does happen, you will need to be immediately available to attend to the repair, even during inconvenient hours.
You’ll also need to either be skilled enough to fix the issue yourself or have the proper contacts to get a tradesperson out quickly to fix the problem for you.
Headache 3 – Lack of quality, well-priced contacts
If in the event a serious repair is needed, and you do have to enlist the help of a tradesperson, do you have a bank of contacts you know are fairly priced, available at all hours for emergencies, and who will provide a quality service?
A property manager can save you both time and money
If you’re not sure if you’d be able to deal with these headaches long-term, it could be worth using a property manager. Whilst property management services do attract a fee which is usually a negotiated percentage of the rental price, in the long-term, they can end up saving you money on repairs and maintenance, as well as being much more convenient.
Property managers are required to keep up-to-date with legislation which affects your rental property. They know exactly what’s constitutes an urgent repair and what doesn’t, and can explain these details to your tenants.
Property managers are also used to receiving calls on weekends, holidays and out of business hours to attend to urgent matters either you or your tenants might face. They’re also equipped to act quickly in these times.
Property managers also have great tradespeople in their contacts lists. Because they deal with different tradespeople across a range of industries, they generally know who provides quality service at a reasonable price. Some may even be able to negotiate discounted fees for you depending on their relationship with the agency.
You can’t underestimate just how much cash a property manager can save you in the long-run, with good relationships potentially saving you hundreds if not thousands of dollars.
Our team would be glad to tell you more about our property management services in your area.
Getting the most out of your investment property is our priority. Here are 8 ways that property managers can help ensure you get maximum return on investment.
- Property managers are equipped to conduct thorough research of the property market to work out the best rental price for your property.
- Property managers have access to a large network of prospective renters and are able to find a tenant who is willing to pay the maximum rent for your property.
- Property managers have access to sophisticated marketing tools and strategies, properly promoting the benefits of your home to find the highest number of potential tenants.
- With their network and marketing advantages, property managers can minimise vacancies. Ensuring your property is never without a tenant for long.
- Property managers can save you money on repairs and maintenance. With a network of preferred tradespeople who are able to offer the most competitive rates that are not always available to the general public.
- A property manager can help with tax depreciation. Most property managers have contacts who are able to perform tax depreciation reports on your property – helping you to claim the maximum back at tax time.
- Property managers who have access to mortgage professionals can put you in contact with a broker who understands which loans and options would specifically suit property investment.
- Some property managers can help you secure the best deal on insurance with contacts who are able to offer you a more competitive premium.
If you’re both an investor and a landlord, chances are you have a good working knowledge of managing your own property. So, why would you consider taking on a property manager to look after your investment property for you? Well, apart from saving you a heap of time, a property manager can actually save you cash in these five ways…
1. They can save you money on general maintenance and repairs
Property managers generally have a range of connections in the home repair and maintenance business who are willing to offer their services at a reduced price for continued business. That means you would benefit from the existing relationships your property manager already has.
Discounted products and services could include anything from plumbing, electrical work, air conditioning installation, gardening and even help moving house
2. They can handle rent and debt collection
Rental properties should make money, not work! As an owner-landlord, keeping track of rent paid on your investment properties can be a strenuous task, not to mention cost you valuable time and money chasing arrears.
A property manager can handle rent collection for you, ensuring rent is paid on time and in full, before being deposited straight into your account. They can also handle the arrears process if rent is late, ensuring you don’t miss out on the income your rental property is supposed to generate, and it means you don’t have to engage an external debt collection agency.
3. They can minimise the risk you’ll lose money through bad tenants
It’s always the risk you run when renting out your property, the possibility of having ‘bad tenants’. But bad tenants aren’t just a nuisance, they’re also a drain on cash. Tenants can potentially cause damage to your property that their bond amount won’t entirely cover, and if you need to take them to court over damages, unpaid rent or other disputes, this itself can be a very costly process.
That’s why it pays to have a property manager who has a thorough vetting and screening process for any potential tenants, weeding out any trouble makers before they ever become bad tenants.
Property managers know what to look for:
- Good employment history
- Good rental history
- Finances in good working order
- No complaints from previous landlords or property managers
They also have the time to thoroughly investigate a tenant’s situation, call current and past employers, and former landlords and property managers, ensuring you end up with tenants who’ve past the test.
4. They can make sure you don’t get caught out with legislation
Property managers must know property legislation inside and out, which takes the risk out of owning an investment property for you. As part of their role, property managers need to know what makes a property legally habitable, down to all the necessary repairs to the structure and exterior of a property.
If a tenant were to be injured as a result of your property not being up-to-scratch, you could be in for a potentially very costly lawsuit.
Property managers are accredited, meaning they are required to continually improve their knowledge on insurance requirements, legislative changes, landlord-tenant law and industry market trends to ensure all clients and their properties are well protected.
5. They can help you with wealth creation
As a busy owner-landlord, there is a lot to consider when it comes to maximising the return on your property portfolio. How should you optimise the return on your investment? What strategies are there to minimise vacancies? How can you negotiate the best rental rate for your property?
Property managers are constantly monitoring the market, they’re familiar with the areas they work in and all types of dwellings. They know what other tenants are paying and what others are likely to pay. They also have the skills to negotiate an optimum rental rate as well as having the expertise to assist in further enhancing your investment.
A property manager’s whole job is managing rent, tenants, researching the market, and keeping up with legislation. They also have the tools, systems, processes and training to ensure they’re doing it in the best way possible.
At the end of the day, a property manager could save you a huge amount of time, stress and cash!
Our team would be glad to tell you more about our property management services in your area.
Friday marked Buddy Day, a fun, high profile public participation event, with the serious message…to raise awareness of the issue of child abuse in our community and the role we all have in keeping kids safe.
Groups of ‘Creators’ transformed Buddies which involved children and adult groups turning plain white cardboard cut-outs into little ‘Buddies,’ but with big personalities! They breathed life into the ‘Buddies’ by giving them a name, a face, clothing, a story and a sense of belonging.
On the 26th of October Harcourts Hamilton announced they would gladly accept the invitation to take part in Buddy Day, taking on the role of official ‘Buddy Couriers.’ The team at Monarch Real Estate transported 350 Buddies around the area, delivering Buddies to those who registered to be ‘Buddy Carers’ from Huntly to Tokoroa.
“As a team, we transported the 350 Buddies to carers which is 20 per cent of the reported child abuse cases in this area. We have already said we will be a part of the campaign next year and we look forward to it going national,” said Brian King, Business Owner of Harcourts Hamilton’s Monarch Real Estate.
Brian King got involved personally by caring for a Buddy which he involved in everything real estate, starting lots of conversations to share the Buddy Day message.
“Monarch was asked to be part of this event and we embraced it with open arms. Those of the team who cared for a Buddy took them everywhere; I took mine out for a business lunch and to property auctions for six weeks. It definitely got conversations going, which is the whole point.”
“It was actually a great team builder at the office as well. It made us talk about a lot of issues around the cause and generally opened up conversation channels. ”
Buddy Day was held on Friday the 16th of November.
Attached are pictures of Harcourts’ Business Owner of Monarch Realty Brian King with his Buddy at lunch; Brian King with the 350 Buddies to be couriered around the area; One of the team with their Buddy.
After battling a strike, arson, aftershocks and insurance hassles, two property owners have accepted that the central Christchurch blueprint has ended their 18-month fight to rebuild. Rob McCormack and Peter Greene have spent $1 million trying to replace the Madras St headquarters of McCormack’s real estate business, Harcourts Grenadier. McCormack said he was “absolutely gutted” to learn their site was in the blueprint’s green frame just as they were finally making progress.
“But I’m philosophical now. I don’t have a choice,” he said.
“We happen to be in the way of the frame. We don’t want to be an obstacle. Some people will have to take some pain, and that’s us.”
When the Grenadier building was wrecked in the February 2011 earthquake, the pair aimed to have its $8.9m, four-storey replacement up within a year.
It would have been the first office building rebuilt in the central city. They immediately struck setbacks securing insurance and had to design the building for extra strength. McCormack estimates he was spending 12 hours a week in meetings and negotiations, on top of his normal business. Then their specially sourced 11-metre piles were blacklisted by Auckland port workers because they had been unloaded by non-union labour during a strike. After the piles arrived three months late, the specialist piledriver was torched by arsonists and needed parts from Canada. Then the blueprint came out and their property was within the frame.
“At first I couldn’t absorb it,” McCormack said.
“How much bad luck can anyone have – an earthquake, losing your building, not being able to get our piles, some bugger torching it, and then the Government goes and takes your land?”
Now the pair have a new fight on their hands – compensation. They have met the Canterbury Earthquake Recovery Authority (Cera) to discuss a payout for their property and are optimistic they will get back the $1m spent on demolition, consents, piling, engineers, architects and project management, plus the $1.8m they estimate their land is worth. McCormack is unhappy they will not be offered back their land later.
“They (Cera) gave us a very, very good hearing. We’re not trying to make money; we only want what is fair.”
He will be “extremely disappointed” if the negotiations do not result in an acceptable price.
The Press, Christchurch 28/8/12 5.00am, Reporter: Liz McDonald