Auckland property manager fees tend to be slightly higher than in other parts of Australia due to its large number of properties and the higher salaries associated with managing them.
Fee structures may incentivise property managers to encourage landlords to raise rents as much as possible, making it harder for tenants to locate an appropriate rental unit.
Rental Appraisal
An appraisal is an integral component of real estate investment, enabling property owners to maximize the income potential from their home while also ensuring it attracts qualified tenants at an optimal rent price.
An experienced property management agency can offer a thorough rental evaluation by considering its location and demographics as well as providing insight into what comparable properties in your area are selling for.
An experienced property manager might look at similar homes recently sold in your neighbourhood and examine details like bedroom size and bath count to assess an accurate market price for your property. They then use this data to establish what a fair value might be.
An appraisal also takes into account the age and condition of the property as well as any additional expenses such as electricity or internet that might need to be included in rent payments; most landlords opt out.
An Auckland rental appraisal is an effective way to make sure that your Auckland property is making its full potential and can generate steady stream of income to support your lifestyle or even pay down mortgage debt.
Marketing
Property managers provide one of the many advantages of hiring them: they handle much of your marketing and advertising for you. Costs will differ depending on which agency is hired; before making your choice, ask about any charges they might apply before signing on the dotted line.
As part of your inquiry, ensure to ask about any hidden charges or fees that might not be obvious – these could add up quickly, which could end up breaking your budget at the end of it all.
Find a property management company with upfront, all-inclusive fees to ensure the least costly services while receiving superior customer care.
Some companies provide special incentives to attract your business, such as offering free inspections, referral rewards or bonuses when purchasing from them again. Although these may seem small compared to larger enterprises, they usually prove worth your while.
A common fee associated with monthly rent collection is the percentage fee; however, other expenses need to be considered such as management fees and any miscellaneous expenses that arise.
Tenancy Checks
MBIE asserts that letting fees are an up-front cost to some tenants and advocates for their ban as a means to increase access to rental properties and break down barriers that prevent people from finding homes.
MBIE advises the Government to take additional measures against property managers, such as mandating licenced managers to put rent and money in an audited trust account for storage.
Consumer NZ reports indicate that tenants renting through property management companies are more likely to experience issues than those dealing directly with owners. Tenants have complained of unexpected fees and charges as well as property managers failing to give required notice of rent increases or evictions.
Consumers reported a further issue of landlords chasing them for unpaid rent. If a tenant falls behind less than 21 days, their property manager can issue a notice to remedy; otherwise they can apply to a tenancy tribunal for termination if more than 21 days of rent remains outstanding.
An additional service provided by property managers is inspections to make sure repairs and maintenance are being completed efficiently, saving both landlords time and hassle.
Property Managers can be invaluable resources for information regarding the Residential Tenancies Act 1986 and how it applies to their property. With proper guidance from a competent property manager, tenants may avoid violating laws and incurring fines at Tenancy Tribunal hearings.
Inspections
Regular property inspections are beneficial to both landlords and tenants, providing an opportunity for both to assess how things are going and address any potential issues before they become major issues. Furthermore, inspections provide both parties an opportunity to show appreciation for each other’s efforts at caring for the home.
An excellent Auckland property manager will be able to provide detailed reports that highlight the most essential components of your home and give you peace of mind that everything is running smoothly. They’ll let you know if your roof leaks, cracks in walls need fixing and any potential emergencies like pest infestations are present that need attending too.
Most contractors will also recommend adding safety features to your property that will make it safer for children, such as cord tensioners or child safe door locks, to help keep young ones from wandering into dangerous places at inappropriate times.
Auckland property managers typically charge a percentage of your collected rent as fees for their services; typically around 7% + GST; this may also include extra services such as maintenance or inspection of your investment property. Property management services can save time while still giving peace of mind over your investment’s safety.
Lease Renewals
Lease renewals are an integral component of property management, helping to retain tenants longer while decreasing turnover and guaranteeing steady rental income.
Property managers engage in renewal processes with current tenants to see if they would like to renew their leases, offering incentives in order to entice them.
Rent increases and any other changes that could erode relationships are important considerations in lease renewal, so property managers must ensure that new rental rates are reasonable, particularly during times of high inflation.
Consider several factors when setting the rental rate, such as location, amenities provided, house/unit condition and rental agreement terms. Research the prices of similar properties nearby so as to gain a fair benchmark.
Trade Me provides comprehensive figures on rents across New Zealand regions while Barfoot & Thompson publishes quarterly reports about Auckland rents.
Property managers should consult Stats NZ’s Rental Index to understand how rent has increased in their area.
An increase in rental payments should always come with notice to tenants, giving them at least 90 days to decide whether or not they wish to continue renting the property, giving time for landlords and managers to market the property and screen applicants for it.
Property Management
Property managers in Auckland typically charge a management fee that typically ranges between 7.5-8.5 per cent of rent collected for managing properties.
Fees cover marketing the property, conducting viewings with prospective tenants and collecting rental income; all these costs are tax deductible.
Property managers also take care to address day-to-day concerns that arise during a tenancy, such as repairs and maintenance issues. A property manager will manage these with reliable trades people while being available whenever needed to assist.
Landlording with tenants who struggle to make rent payments can be stressful; but working with a property manager to find an arrangement that benefits both parties is paramount to finding solutions that work. This could include helping the tenant find another apartment or setting up a plan that allows them to catch up their payments over time.
Divorce or redundancy can be trying life events to manage, and may cause tenants to fall behind on payments; but with the assistance of a property manager they will be able to find an efficient plan to address this problem quickly and efficiently.
Property managers provide peace of mind for investors by overseeing tenants who may be having financial difficulty and also ensure your property meets Healthy Homes Standards.