Auckland is a thriving community with a very promising real estate market. If you’re starting to take advantage of that market and acquiring your first rental properties, you may also want to go looking for help with property management. A good manager makes an enormous difference in the ownership experience.
Property Ownership Shouldn’t Be A Burden
Real estate investment is often touted as the one true form of “passive” income. Renting out properties you own should theoretically deliver you revenue while requiring nothing in return. Of course, this isn’t the case in reality; you have plenty of obligations and responsibilities to meet as a landlord. If you lack professional experience in this field, you may find managing more than one or two properties to be an overwhelming job.
Your “passive” money-making properties shouldn’t have you working 60 hour weeks hunting up renters and calling in plumbers! There is absolutely nothing wrong with hiring a professional to take care of the day-to-day details of property management for you. By freeing you up to apply your talents more productively, property managers perform a great service and make it easier for you to use your time efficiently.
Commercial Vs. Residential Management
The biggest split in the field of property managers available to you is between those who specialize in commercial properties and those who handle residences. Not even overall property size makes as much of a difference as this. Commercial managers need to be familiar with a wide range of professional concerns and capable of dealing quickly and efficiently with renters that are usually organized as businesses or corporations.
Residential managers, on the other hand, should have plenty of experience in dealing with individual tenants effectively. A big part of keeping residential properties profitable is keeping them filled with reliable rent-paying individuals, and finding those tenants is often the responsibility of the property manager. Make sure you’re clear on how much of an active hand your manager will take in filling vacant units.
Hiring Individuals Vs. Hiring Firms
Like most professions, property management is divided between individuals operating on their own and larger companies providing equivalent services. Deciding which approach is right for you depends on a careful reading of your own needs and the different management offerings you consider.
Hiring a management company is usually the fastest way to put professionals to work on your behalf. It’s rarely the cheapest option, though, and the full range of services available to you will be limited by the company’s resources and policies. Hiring an individual takes more time and involves a lot more homework on your part, but a good fit between your needs and your manager’s skills can deliver unparalleled service at excellent prices.
If you’ve recently purchased property in Auckland and you intend to rent it out, think long and hard about whether or not you’re prepared to assume day-to-day responsibility for the management of the property. If you don’t have the time or the skills to do the job properly, it’s better for all concerned – both you and your tenants – to entrust the job to a professional property manager. The help you get will more than make up for the cost of management services.
Watch the video for more.