Managing your rental property

If you’re new to being a landlord, it’s important to know that managing a rental is a lot more than collecting rent. You have a wide range of responsibilities. For things to go smoothly, you’ll need to understand what the law requires and be ready to handle any issues. 

We cover a quick rundown of some of your main responsibilities. Then, we’ll weigh the pros and cons of managing them yourself versus hiring a property manager.

The Residential Tenancies Act sets out some of the primary responsibilities of landlords. For example, landlords are required to keep their properties in a reasonable state so they’re safe and healthy to live in. 

Some of the things you’ll need to do are:

• Meet all legal building, health, and safety requirements 
• Make sure plumbing, electrical wiring, and the structure of the property are safe and in working order
• Make sure locks and fastenings work properly.

There are also minimum standards for things like heating and insulation. You can’t just ‘set and forget’ these requirements. Staying compliant means keeping up with repairs and maintenance. 

If you manage your own property and leave New Zealand for more than 21 days, the law requires you to appoint an agent to act on your behalf. This person will be your tenant’s point of contact for any issues. 

Landlords and tenants both play a role in maintaining the property. Tenants should keep it clean and tidy day-to-day and report any maintenance issues as they arise. You’re responsible for addressing these issues promptly – just as you would for your own home. It helps to have a network of tradies who you trust to get the job done. 

Routine checks, such as clearing gutters and servicing heating systems, can be a good way to prevent small issues getting out of control.

Regular inspections are important for staying on top of things. They give landlords the chance to check for damage and ensure the property is being kept clean and tidy.

Inspections can also help build trust between you and your tenants. By being transparent about any issues early, you give tenants a fair opportunity to fix the problem. 

Making sure your investment property is well-maintained, inspected regularly and complies with legislation is a big part of being a landlord. Many investors don’t have time to manage it all, which is why a property manager may be useful.

Property managers can handle the tasks that landlords are typically responsible for. They provide advice, ensure legal compliance, and act as a go-between for landlords and tenants. Their services include:

• Finding and screening tenants 
• Arranging repairs and maintenance 
• Addressing disputes and tenant concerns 
• Conducting reference checks and regular inspections 
• Making sure rent is paid on time and chasing late payments 
• Keeping up with legal requirements 
• Managing bonds and tenancy agreements. 

Whether you manage the property yourself or hire a professional depends on your comfort level with these tasks and how much time you’re willing to invest. 

It’s one of the first decisions you’ll face as a landlord: should you manage your property yourself or hire an expert? Both options have their perks and pitfalls. Here are some things to consider.

Property managers should have a good understanding of landlord-tenant laws. They should be able to help you get up to speed on your responsibilities and keep you informed about legal changes. This is useful if you’re unfamiliar with the law or don’t have time to stay updated. From issuing 90-day notices to handling disputes, their practical experience could save you the headache of figuring it out on your own.

Property management fees could be around 6-10% of your rental income. The exact amount you’ll pay depends on your property’s location and the company you use. Managing your own property means you won’t pay these fees, which can save you a lot of money over the long term. 

There might also be extra charges for inspections, credit checks, admin, and surcharges for maintenance or repairs. It’s a good idea to ask for a breakdown of all fees upfront so there are no surprises.

Managing an investment property takes significant time and energy. Responding to urgent repairs and coordinating large maintenance projects can be demanding – especially if you travel, live far from your rental, or have a packed schedule. Broken locks and blocked toilets don’t always wait for business hours. 

Property managers have established systems for tasks like maintenance, inspections, and screening tenants. Knowing a professional is handling the day-to-day operations can free you up for other priorities.

Getting to know your tenants can be rewarding. When tenants have a relationship with their landlord, they’re more likely to stay. They may also be motivated to report issues more promptly and take care of the property as if it was their own. 

However, even with the best intentions, relationships can break down. You might be more comfortable letting a property manager handle issues on your behalf. 

Managing your own property puts you in the driver’s seat. You can make key decisions without the input of a middleman. For example, you can negotiate directly with tradespeople to get the best deal and personally vet tenants to ensure a good fit. 

With a property manager in the mix, you’ll naturally be less involved in your investment – that’s part of what you’re paying them for, after all. If you like being hands-on, that loss of control could be a drawback. For others, it’s a relief.

A safe, well-maintained property helps attract and keep good tenants, protecting your investment. That’s why how you manage your rental is such an important decision. Self-management gives you control and saves on fees, but it can be time-consuming. A property manager offers convenience and expertise but comes with added costs. 

It all comes down to how hands-on you want to be and how much time and money you’re willing to invest. The right choice is the one that works best for your situation.