Property managers

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JimmyH

2816 posts

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#233578 22-Apr-2018 17:55

For reasons that I won't go into, I am probably going to have to relocate for quite a while. This will be for at least three years, but could turn into five (or even more).

This means that I am going to have to move our of my place. I want to hang on to it, at least until I see how things pan out, because it's in a good area, a house I like, and it's more than likely that I will move back here at some point.

So I want to tenant it on an investment basis, on a basis that at least cover the outgoings, and hopefully some more besides. I'm not looking to screw the most I can out of someone on a short-term basis, I want to make a reasonable return on the investment, but also get good tenants who will take care of the place even if this means I don't necessarily get top dollar. Because I don't want the hassle of dealing with tenants, I will probably use a professional property manager.

I also want a decent property manager who will do inspections and proactively manage things, which i am obviously prepared to pay a fair rate for.

So, I'm interested in any tips on how to select a good property manager and/or tenants, and any recommendations (for and against) property managers (Wellington region).

mattwnz

19374 posts

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#2000741 22-Apr-2018 19:01

Is it a nice house that you have done up, or has it previously also been a rental? If it is a nice house with a nice new kitchen etc, I would be worried about damage, and as to whether it is worth the risk of renting out. That is the case with many nice houses which the owners would rather just leave empty, rather than risking renting it out. The risk of P is also a big consideration IMO. I think you really want to know the person renting it out, or you can also help choose them. Not sure how hands on property managers really are.

My brother is weighing up this at the moment, as to whether they want to rent out their 2 year old home while they are away for a few years, which would probably not cover the mortgage anyway. But they are worried that their nice new home will get damaged, or even heavy handed wear and tear. So they will likely sell it, unless they can't get the price they want.

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Wheelbarrow01

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Chorus

#2000859 23-Apr-2018 08:36

Tommy's Real Estate have a property management department with an excellent reputation so I would start there. They have always had a small property management team which ensures personal service at all times - both for the property owner and the tenant. Their renting clientèle are almost exclusively working professionals and corporates, so you're unlikely to have any tenancy issues if you go with them.

frednz

1452 posts

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#2000898 23-Apr-2018 09:18

If possible, don't rent it out, simple as that. Property managers quite often do the very least that is required and are nowhere near as good as managing it yourself.

The demands on landlords are increasing all the time and the rights of tenants are getting stronger and it can be extremely difficult getting rid of bad tenants.

You may find the comments following this article to be of interest!

MikeAqua

7608 posts

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#2000917 23-Apr-2018 10:00

As a tenant I'm renting throguh Oxygen. They had a very thorough vetting process, inspect the property quarterly.

As the house is nice and in good area you could consider leaving it furnished and use an agency that provides shorter term rentals to visiting business people etc. As a tenant I have used Quinovic for this.

Mike

Aredwood

3885 posts

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#2001256 23-Apr-2018 20:10

You might be better off renting it via Airbnb. So you are not restricted by the residential tenancies act. Main problem with that act being max bond is restricted to 4 weeks rent. But you can't apply for eviction due to unpaid rent, until the rent is at least 3 weeks overdue.

Goosey

2336 posts

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#2001306 23-Apr-2018 21:38

Aredwood: You might be better off renting it via Airbnb. So you are not restricted by the residential tenancies act. Main problem with that act being max bond is restricted to 4 weeks rent. But you can't apply for eviction due to unpaid rent, until the rent is at least 3 weeks overdue.

OP sounds like he wont be able to activley manage it, thus AirBnB isnt perhaps an option.

ANglEAUT

1935 posts

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#2001317 23-Apr-2018 22:06

Goosey: OP sounds like he wont be able to activley manage it, thus AirBnB isnt perhaps an option.

And that is why you have options like this, the middle man:

http://pillo.co.nz/

They say, 'We’re changing the way Auckland accommodates'.

For Our Savvy Owners:

Engage Our Professional Team To Maximise Your Investment
We’ll Handle the Intricate Processes and Spare You the Hassles. Guest Hospitality, Turnover, Maintenance, and More – All Sorted
Daily Pricing Review By a Professional Analyst of Your Property’s Revenue Potential and Rate Competitiveness. Not Just a Faceless Algorithm!
Increase Your Property Income and Earn a Better Return On Your Investment Than You Thought Possible, With The Option To Enjoy Your Property Yourself
You’ll Be In Good, Qualified Hands. We Deliver!

And apparently, they are not the only one out there. They come in all sizes. As above, advertised, managed & service or only cleaned after departure. Take your pick.

Note, I have no affiliation with pillo. I saw the advert once and browsed their website briefly. I have no financial or other interest in the company.

Please keep this GZ community vibrant by contributing in a constructive & respectful manner.

Batman

Mad Scientist
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#2001357 24-Apr-2018 06:50

1. Wellington rentals are through the roof.

2. Rent it out.

3. If you want to be picky you can choose who you rent to but you are not allowed to advertise as such or it will be labelled discrimination.

4. Property managers are like teachers, some are good, some are no good, but you'll need one. Hope you get good tenants, that's more important than good employees that the property manager employs.

5. Property prices in NZ is like gold, never falls. Check out all the articles predicting a crash since 2003, we are still waiting. Don't sell unless you have to.

6. Get proper insurance.

7. Be a good landlord.

JimmyH

2816 posts

Uber Geek

#2002466 25-Apr-2018 19:08

Yep. I want to rent it out, not sell it, as I expect to return to the property. I don't want to leave it vacant for 3-5 years, and I don't want the hassle of day-to-day management of tennants.

You can pick tenants, and I will. I don't think I will encounter issues as my criteria aren't prohibited grounds for discrimination under the human rights legislation. I don't care about race or sexual orientation etc. What I do care about are ability to afford the rent, good references and no dogs. I want someone who, in return for a fair deal, will treat the property well.

mattwnz

19374 posts

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#2002478 25-Apr-2018 19:39

Batman:

5. Property prices in NZ is like gold, never falls. Check out all the articles predicting a crash since 2003, we are still waiting. Don't sell unless you have to.

You mean 'yet'. Although I believe there were some falls after the GFC. But NZ prices are incredibility high even compared to England, outside of central London, espeically considering how poor quality many NZ houses are. The price of houses is very much tied to what people can afford to pay. Low interest rates, mean people can afford to borrow more. If interest rates rise, then that will likely change.

SepticSceptic

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#2002800 26-Apr-2018 13:48

Irrespective of who or how you rent your property, leave your contact details with a couple of your trusted neighbours.

Let them know you will be away, and get them to advise you of any untoward happenings.

Property managers are not always on the ball, or on hand to deal with emergent issues, disorderly conduct, etc.

My thoughts are no longer my own and is probably representative of our media-controlled government

Batman

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#2002860 26-Apr-2018 15:42

mattwnz:
Batman:

5. Property prices in NZ is like gold, never falls. Check out all the articles predicting a crash since 2003, we are still waiting. Don't sell unless you have to.

You mean 'yet'. Although I believe there were some falls after the GFC. But NZ prices are incredibility high even compared to England, outside of central London, espeically considering how poor quality many NZ houses are. The price of houses is very much tied to what people can afford to pay. Low interest rates, mean people can afford to borrow more. If interest rates rise, then that will likely change.

I hope you're right, then I can buy my dream house(s) lol. But I'm still waiting. Don't think it will happen unless Donald Trump takes over as PM and chase everyone away. Thing is, unlike Ireland for example, tonnes of people actually really really really want to live here and buy a house.

Completely agree with the quality of housing stock. Though the land price have appreciateda lot more than the dwellings on them have depreciated. Despite that, many places have more buyers and renters than there are houses or rentals. Fact. And with the cost of building prohibitively high, I'd say wait another 30 years for another place more beautiful that people flock to.

MikeAqua

7608 posts

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#2002905 26-Apr-2018 16:17

mattwnz:

NZ prices are incredibility high even compared to England, outside of central London, espeically considering how poor quality many NZ houses are. The price of houses is very much tied to what people can afford to pay. Low interest rates, mean people can afford to borrow more. If interest rates rise, then that will likely change.

I suggest you need to compare UK prices outside of London to NZ prices outside of Auckland for the comparison to be more valid. In NZ the main value is generally the land, not the building - especially if the building is old.

I have to say as keen fan of real estate programs - I don't see a lot to love about English houses. You see a lot of small, pokey and old houses that end up looking cluttered with juts few basic pieces of furniture. Very low ceilings on some older houses and then sometimes with exposed beams. You even see people building new houses with attic bedrooms that barely have room to stand up. I don't get it. The lots are often very small and plenty of houses are attached.

I would give English properties the tick on central heating, glazing and insulation. The current building code for NZ does result in houses that are well insulated and glazed. Central heating still seems to be a rarity here (and expensive to install and operate).

Mike