What will it cost to manage my property?
But the other property management company I am looking at charge a lower management fee?
The Devil is often in the detail and this is where you need to check carefully. Look closely at what the other company is going to charge you with add-on fees. Whilst they may have a lesser management percentage, by the time you add in inspection costs (+GST), fees for arranging maintenance (often 10%), administration fees and Tenancy Tribunal fees, it ends up costing you more.
If you can show us another property management company that will manage your property for less we will happily match it!
Is there a discount for managing multiple properties?
Why should I pay a property manager to manage my rental property?
You could certainly manage your rental property yourself if you wish – many people do. But it is not a straightforward matter. The management of residential tenancies is governed by the Residential Tenancies Act 1986 and there are considerable penalties for Landlords who do not comply with the Act. Ask yourself the following questions:
- Do I have a good knowledge of the Residential Tenancies Act 1986?
- Do I have access to full credit check facilities?
- Am I confident in attending Mediation and the Tenancy Tribunal if required?
- Do I have the time to select tenants?
- Do I have the time to carry out regular inspections as required by insurance companies to keep the insurance valid?
- Do I have the correct plans and risk identification processes in place under Health and Safety legislation to be able to undertake maintenance myself (Owners are now legally liable for injury to themselves, tenants and contractors)?