Efficient property management is crucial for both landlords and tenants. When it comes to property management, you have the decision between hiring an independent property manager or opting for a traditional property management company. While both options have their merits, there are compelling reasons why an independent property manager is a better choice.

1. Personalised Service:
Independent property managers typically handle fewer properties compared to larger companies. This allows them to provide a more personalised and dedicated service to each client. With a smaller client base, independent managers can focus on the unique needs of individual properties, tailoring their services to meet specific requirements. At Homely we cap our portfolio numbers to ensure this.

2. Direct Communication:
One significant advantage of working with an independent property manager is the direct line of communication. Property owners often find it easier to reach and communicate directly with an independent manager, fostering a more transparent and responsive relationship. Quick and efficient communication is essential in addressing concerns, resolving issues, and making informed decisions.

3. Cost Efficiency:
Independent property managers may offer a cost-effective alternative to traditional property management companies. With fewer overheads and administrative costs, independent managers can often provide competitive pricing while maintaining high-quality services. Property owners benefit from a more direct relationship without sacrificing financial efficiency.

4. Local Expertise:
Independent property managers often specialize in specific local markets. This localised expertise can be a valuable asset when navigating local regulations, market trends, and tenant expectations. A deep understanding of the local real estate landscape allows independent managers to make informed decisions that benefit both property owners and tenants.

5. Flexibility and Adaptability:
Smaller scale operations often lead to increased flexibility. Independent property managers can adapt quickly to changing circumstances and tailor their approach based on the unique requirements of each property. This flexibility can be particularly beneficial in leasing properties, with the ability to be able to offer after hours and weekend viewings. 

6. Client-Centric Focus:
Independent property managers rely heavily on their reputation and client satisfaction for business growth. This focus on building a positive reputation encourages them to prioritise client needs and provide excellent service. The personal investment in client relationships can result in a higher level of commitment to client success.

7. Streamlined Decision-Making:
With fewer bureaucratic layers, independent property managers can make decisions more swiftly. This streamlined decision-making process enables them to address issues promptly, ensuring that both landlords and tenants receive timely resolutions to their concerns.

At Homely we do believe that while traditional property management companies have their advantages, independent property managers offer a range of benefits that can make them a preferable choice for property owners. The personalised service, direct communication, cost efficiency, local expertise, flexibility, client-centric focus, and streamlined decision-making processes are compelling reasons why you will find that an independent property manager is better suited to meet your needs in a constantly changing industry. 

Rental Property and Airbnb are two different types of property investment strategies. Here are some key points to understand the differences between them:

Rental Property

A rental property involves leasing out a property on a long-term basis, typically for a year or more. The landlord receives regular rental income, and the tenant is responsible for utilities and maintenance.

Pros of Rental Property:
– Stable income is the number one attraction for rental properties as it provide a steady stream of income as tenants typically sign long-term leases. With people struggling to afford their own homes, there is a constant high demand for rental properties regardless of the location or time of the year.

– You don’t need to think about vacancy rates, seasonal movement, or dealing with the hassle of check-in and outs. Long-term rentals involves fewer turnovers and less frequent guest interactions.

– There is less cost in not having to furnish a rental property. Tenants cover power, internet, water bills and their own contents insurance. There are also no regular cleaning and linen services costs to cover.

– There is less admin with long-term tenants, there is less worry about administrative tasks. Once the tenancy agreement is signed, and keys are exchanged, you don’t need to worry about advertising, key drops, cleaning and constant guest turnover.

Cons of Rental Property:
– There is limited flexibility. Once a lease is signed, it can be challenging to terminate early or adjust rental rates. You can’t book in to use the property when you wish.

– There may be periods of time where the property is unoccupied, resulting in no rental income. However, this is often short term.

– There seems to be a growing list of government regulations introduced affecting landlords, the full impacts of which are just impossible to follow at times. However, this is where a Property Managris useful.

Airbnb

Airbnb allows property owners to rent out their spaces on a short-term basis, usually for a few nights or weeks at a time. It is a popular option for travelers looking for unique accommodations.

Pros of Airbnb:
– Airbnb rentals can generate higher income per night compared to long-term rentals dependant on location and demand.

– Property owners have control over availability and pricing, allowing for flexibility for personal use or adjusting rates based on demand.

– Airbnb have less wear and tear on the property. You have more control of the property. Inspections are regular, and the property is professionally cleaned often. Guests that are staying are less likely to spend time in the house and even less expected to rearrange furniture or redecorate.

Cons of Airbnb:
– There is more management required, as an Airbnb property involves frequent turnover, guest communication, and maintenance or cleaning between stays.

– Depending on the location, there may be legal restrictions or regulations regarding short-term rentals. Check with your local council.

– Holiday rentals require more financial commitment as the properties need to be furnished and equipped with all the amenities, including services such as television and internet. Regular cleaning, maintenance and linen hire/service can come at a large cost. You need to make sure you also cover all the monthly bills like water and power.

– There are also some tax implications as short term accommodation is subject to GST. Not only does it mean that you may lose 15% of your profits, but you’re likely to lose 15% of the capital gain made on the property when you sell it or change the property’s use.

– Airbnb’s are not covered by the by Residential Tenancies Act. This means that standard tenancy agreements don’t apply. You need to make sure the contracts you use are enforceable, apply to your situation and have all the right conditions outlined.

– You may need to pay a higher premium or arrange extra cover as your usual house and contents insurance might not cover an Airbnb.

When determining whether to pursue a rental property or Airbnb investment it is essential to consider the advantages and disadvantages of each option. There is no right and wrong answer, as every property and owner have different needs to cover. Ensure you do your research and keep in mind that property investment should be a long-term plan that provides a revenue stream and ideally requires little time managing.

Property management plays a crucial role in maintaining and enhancing the value of rental investments. If you’re a landlord, having a skilled, qualified and efficient property manager can make all the difference in ensuring the success and profitability of your investment. In this article, we will explore the essential aspects of effective property management and why it is crucial in today’s dynamic real estate market.

1. Maintenance and Repairs:
   One of the primary responsibilities of a property manager is to oversee the maintenance and repair needs of the property. From routine inspections to addressing tenant complaints and coordinating repairs, a proactive approach to property maintenance ensures that potential issues are identified and resolved promptly. Regular maintenance not only keeps the property in good condition but also safeguards its long-term value.
2. Tenant Screening and Communication:
   Finding and retaining quality tenants is instrumental in maximizing rental income and minimizing vacancies. A competent property manager will thoroughly screen prospective tenants, verifying their employment, credit history, and references. Furthermore, effective communication with tenants, including addressing their concerns promptly and providing clear guidelines on property rules, creates a harmonious living environment and fosters tenant satisfaction and retention.
3. Rent Collection and Financial Management:
   Timely rent collection is vital for steady cash flow and sound financial management. A property manager ensures that rent is collected promptly, handles eviction procedures if necessary, and monitors rental rates to stay competitive in the market. Additionally, they are responsible for accurate financial record-keeping, budgeting, and handling day-to-day financial transactions.
4. Legal Compliance:
   Navigating the legal aspects of property management is a complex task. A knowledgeable property manager ensures that all property operations comply with the Residential Tenancies Act 1986. From lease agreements to health and safety laws, prudent property management minimizes legal risks and protects both landlords and tenants.
5. Property Marketing and Tenant Selection:
   Vacancies can be costly for property owners. A proactive property manager employs effective marketing strategies to attract potential tenants efficiently. They utilize various online platforms, social media marketing, and networking to showcase the property’s unique selling points, thereby minimizing vacancy periods and maximizing rental income.
6. Conflict Resolution and Problem-Solving:
   Inevitably, conflicts and problems may arise between tenants, landlords, or neighboring properties. A skilled property manager acts as a mediator, employing diplomatic communication and problem-solving skills to find amicable resolutions. By effectively managing such conflicts, property managers uphold a positive image for the property and maintain tenant satisfaction.

Effective property management is a multifaceted role that requires a range of skills, knowledge, and experience. By entrusting your property to a competent Homely Property Manager, you ensure that your property is well-taken care of, leading to increased profitability, reduced stress, and enhanced peace of mind. From maintenance and tenant management to legal compliance and financial oversight, property management is an invaluable asset in your property investment journey.

• Amanda Wiapo – Director of Homely Property Management