Choosing the right property management company is a crucial decision for property owners, whether you own residential units, apartments, townhouses or free-standing properties. A good management company can enhance your investment’s value and ensure smooth operations, while a poor choice can lead to financial losses and stress. Here is Homely’s guide to help you make an informed decision.

1. Research and Gather Recommendations
Start your search by gathering recommendations:

Ask for Referrals: Talk to other property owners or real estate agents in your network for trusted recommendations.

Online Reviews: Check platforms like Google. Look for patterns in feedback regarding responsiveness, professionalism, and tenant relations.

2. Check Credentials and Experience
Ensure that the companies you consider are reputable:

Accredited Company: Verify that the company is accredited through the Real Estate Institute of New Zealand. This ensures they are correctly set up to be managing your property and dealing with your rental income. 

Experience: Look for companies with a proven track record in managing properties similar to yours. Consider how long the property manager has been working in the industry or if they are qualified.

3. Evaluate Their Services
Not all property management companies offer the same services. Ask about:

Tenant Screening: Inquire about their screening process for potential tenants, including credit checks, background checks, and rental history verification.

Maintenance and Repairs: Understand their approach to property maintenance. 

Financial Management: Clarify how they manage finances, including rent collection, accounting, and reporting. Regular financial reports should be part of their service.

Inspections: What to expect from inspection reports.

4. Assess Communication and Responsiveness
Effective communication is key to a successful management relationship:

Initial Interaction: Pay attention to how promptly and thoroughly they respond to your inquiries during the initial contact. This often reflects their overall communication style.

Regular Updates: Ask how often you can expect updates regarding your property and tenant issues. Clear communication channels should be established.

Flexibility: Are they are to communicate and visit the property for viewings after hours if required. 

5. Review Management Fees and Contracts
Understanding the cost structure is essential:

Fee Structure: Inquire about management fees, typically a percentage of the monthly rent. Be cautious of any additional fees for services like maintenance, inspections, or lease renewals.

Contract Terms: Review the contract carefully. Look for details regarding termination clauses, responsibilities, and any hidden fees. Ensure that the terms are fair and transparent.

6. Visit Managed Properties
If possible, visit some properties currently managed by the company:

Condition of Properties: Evaluate the overall condition of the properties. Are they well-maintained? This can be a strong indicator of how the management company operates.

Tenant Interactions: If you can, observe how they interact with tenants. A good property manager should foster positive relationships.

7. Trust Your Instincts
Ultimately, trust your instincts when making a decision:

Comfort Level: Choose a company that you feel comfortable with. You should trust them to handle your investment with care and professionalism.

Long-term Relationship: Consider that property management is often a long-term relationship. Opt for a company that aligns with your values and investment goals and has a low staff turnover rate.

Selecting the right property management company requires careful consideration and thorough research. By understanding your needs, gathering recommendations, assessing credentials, and evaluating communication, you can make an informed choice that enhances your property investment. Take your time, and don’t hesitate to ask questions—your property’s success depends on it!

To find out more about Homely and how we operate visit us at www.homely.nz

Homely Service the following areas:
Property Management Manawatu
Property Management Feilding
Property Management Palmerston North
Property Management Horowhenua
Property Management Kapiti

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. 

Homely Service the following areas:
Property Management Manawatu
Property Management Feilding
Property Management Palmerston North
Property Management Horowhenua
Property Management Kapiti

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.

Homely Service the following areas:
Property Management Manawatu
Property Management Feilding
Property Management Palmerston North
Property Management Horowhenua
Property Management Kapiti