When you have a substantial property portfolio or you're looking at spreading out and investing in more areas, especially in a lucrative real estate market like Auckland, juggling your finances, potential opportunities, sales and your current properties can be extremely difficult. For some the simple truth is that managing tenants, rental prices and advertising vacancies just isn't a strength they possess. If you don't feel capable in the role, look to a property management company to take care of day-to-day operations for you.
What does a property management company do?
The best thing about property managers is the flexibility that they offer. If you just need someone to take care of your marketing strategy by placing classified ads in real estate magazines, advertising online and taking potential tenants through for a look then they have you covered. If you want a manager who can do it all, set realistic rental prices, deal with minor renovations, repairs, cleaning, complaints and rent collection they are able to take charge of the whole lot.
You just need to outline the areas of management you want taken care of and let them do the rest.
Where can I find a good property manager?
Some property managers work one-on-one with owners while others are part of larger organisations that take care of several different clients at once. A good property manager will have plenty of experience to back them up and a few different contacts for you to get in touch with so you can enquire about past performance.
A quick Google search for property managers in your area will yield some names and is just one place to get started. It's a good idea to ask other property owners for ideas as high quality management companies usually spread via word-of-mouth. Remember that the manner in which they deal with potential and current tenants, maintenance companies, realtors and any anybody else in the industry will reflect on you as an owner - it's crucial to do as much research as possible before signing any contract.
Talk to your real estate agent about management companies that they might be able to vouch for and take note of any names that come up frequently during your search.
Decide on a property manager
After you've discussed your needs with a couple of different management companies, see who will offer you the best price. Some charge a standard rate (usually around 10%) with additional fees for evictions or maintenance while others will work for a flat rate that covers everything. You might even be able to request a lower rate if you just want them to take care of one specific aspect of management.
Hire the professionals, take a back seat and focus on expanding your portfolio. You'll find yourself with more free time and give your properties the expert management that it needs to keep yourself and your tenants happy.