June 24, 2022
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Hiring the right property manager in New Zealand can make a world of difference for landlords.
A good property manager will ensure your investment properties are well-maintained, occupied by good tenants, and return excellent yields.
With many property managers in Auckland to choose from, you must ask the right questions to make an informed decision that aligns with your goals and priorities. Your investment deserves nothing less than the best care.
In this article…
- Ask what they can do for you and how much it costs
- Ask about what areas of property management they specialise in
- Ask about their processes and compliance
- Ask how they’ll keep you updated
- Ask how they manage tenancy issues
- Ask about how they conduct maintenance and inspections
- Ask about their resolution process
- Ask about rent reviews and recommendations
- Ask if and how they select tenants
- Ask how they handle emergencies
- Ask about their bond policies and payment frequency
- Ask about their legal and property market knowledge
- Make the right choice with Harper Properties
Ask what they can do for you and how much it costs
Of course, value for money is one of the most critical factors influencing your decision to hire a property manager. If they’re going to be taking a cut of your rental earnings, you need to make sure what they’re providing in return is well-worth it.
Don’t be shy about asking detailed questions regarding their fees and services. A reputable property manager should be upfront and transparent about their pricing structure.
What is your standard service rate, and what does it include?
Property management fees are typically around 10% of the monthly rent, plus a one-time onboarding fee. A strong package includes:
- Marketing your property
- Tenant screening
- Inspections
- Maintenance
- Rent collection
At Harper Properties, we’re proud to offer a competitive 8.5% rate, just $45 per inspection, and no letting fees, maintenance fees, or add-ons. It’s one of the many reasons our clients love working with us.
Are there any non-standard charges, and in what instances would they apply?
Property managers may charge more for managing contractors for repairs, renovations, evictions, or Tenancy Tribunal hearings. Knowing who has to pay for these costs beforehand is important to avoid surprises later.
Do you charge fees even when the property is vacant?
Check if the property manager offers a reduced fee or waives their service rate when the property is vacant.
Ask about what areas of property management they specialise in
As a landlord, you’ll want to work with a property manager whose expertise aligns with your property type and location. Different areas and property categories require unique knowledge and experience to manage effectively.
For instance, managing a high-end apartment complex in Auckland CBD demands a different skill set than overseeing a portfolio of family homes in Howick.
What is your property management specialty in terms of location and types of tenancy?
A good property manager should know their strengths and what type of properties they’re confident in managing. If they claim to be a jack-of-all-trades, you might want to dive deeper – you want a specialist, not a generalist.
Additionally, consider the property management company’s geographic coverage. If your properties are spread across multiple regions, you’ll want a manager with a strong local presence and a deep know-how of each area’s rental market dynamics.
Ask about their processes and compliance
Don’t be afraid to dig into the nitty-gritty details here — an ounce of prevention is worth a pound of cure. Strong in-house processes help secure full compliance with relevant regulations and laws.
What is your in-house service compliance process?
A good property management company should have strong internal processes. Ask to see their quality control and compliance procedures and check for clear workflows and oversight.
How do you ensure legal compliance with tenancy regulations and local laws?
Property management is a minefield of rules and regulations that differ across regions. An experienced Auckland property manager will be an expert on all the relevant tenancy laws in your area.
The right company will also have documented policies, training and quality checks to guarantee they never put you or your investment at risk through non-compliance. If they seem vague on the specifics, it’s another red flag.
Ask how they’ll keep you updated
Effective communication shouldn’t just be a nice benefit. Especially when the property manager is responsible for one of your biggest investments.
How often do you communicate with and report to landlords?
Property managers should have good communication skills. They should give monthly reports on:
- Rent collected
- Maintenance issues
- Inspections
The best managers give updates on potential vacancies or tenant issues.
Can you provide an example of a monthly report that landlords receive?
Don’t just take their word for it – ask to see a sample report. A good report contains all the important details. If the report looks sparse or disorganised, it could be yet another red flag.
Ask how they manage tenancy issues
One benefit property managers bring is their clever strategies for managing tenancy issues.
What are your tenant-churn rates, and how do you manage tenant turnover?
High tenant turnover affects rental income and profitability. Ask about the average tenant tenure and vacancy rates to know what to expect in the long run.
What measures do you take to ensure prompt rent collection and minimise arrears?
Late rent payments disrupt your cash flow and signal communication breakdowns with tenants.
Agencies have strict rent collection protocols, such as:
- Issuing arrears notices
- Pursuing debt recovery
- Maintaining an arrears database
Have you had to go to the Tenancy Tribunal, and were you successful?
Tenancy disputes might still occur despite precautions. A good property manager should have a history of successfully representing landlords in court.
Tip: Dig deeper and ask about their experience with the legal system, case outcomes, and strategies.
Ask about how they conduct maintenance and inspections
A good property manager takes maintenance and inspections very seriously. Regular property inspections and preventative maintenance help protect your investment and keep tenants happy.
How do you respond to repair and maintenance calls?
You’ll want to know the typical response times for urgent and non-urgent repairs and how they assess and prioritise maintenance requests. A good property will have a property maintenance checklist and a few reliable licensed tradies on call.
How often do you inspect properties, and how do you document inspections?
Regular inspections help identify any issues early before they become costly problems. Find out:
- How do they schedule inspections
- What they look for
- How inspection reports are shared with landlords
Ask about their resolution process
Another key question to ask a property manager is how they can resolve issues that may arise during the tenancy. A good resolution process can minimise stress, protect your investment, and make it a positive experience for both landlords and tenants.
How soon do landlords discover rent arrears, damages, or abandonment issues?
A professional property manager should have well-defined procedures in place to address these concerns promptly and fairly.
For instance, if a tenant falls behind on rent, you’ll want to know how quickly the property manager will notify you and what steps they will take to rectify the situation.
- Will they issue notices?
- Follow up with the tenant?
- Or initiate legal proceedings if necessary?
Understanding their process for handling rent arrears can give you peace of mind and help you make informed decisions.
How do you handle disputes between tenants and landlords, and what is your conflict resolution process?
Disputes between tenants and landlords can also arise. Inquire about their conflict resolution process and the mediation or escalation procedures. A skilled property manager should have the expertise to deal with these situations impartially and professionally.
Ask about rent reviews and recommendations
Rent reviews and recommendations from your property manager can greatly impact your rental returns over time. It’s important to understand their approach and how often they’ll assess the market to maximise your income.
How often do you review rent, and what factors inform your decision to raise rent?
A property manager regularly checks the local rental market for reasons to increase rental income. They consider factors like:
- Comparable rates
- Demand
- Property conditions
- Economic trends
Do you regularly make suggestions and recommendations to help landlords increase their rental return?
The best property managers don’t just wait for rent reviews — they’ll actively identify opportunities to increase your returns. They will advise on:
- Renovations
- Upgrades
- Strategies for reducing vacancy periods
- Ideas for amenities or services
Ask if and how they select tenants
A stringent screening process is worth the long wait. It minimises future headaches around missed payments, property damage, and drawn-out evictions.
How do you background check potential tenants, and what informs your decision?
The most experienced property managers can sniff out liars and troublemakers from the first interaction. However, you’ll still want to know if they will do their due diligence and follow through with:
- Background checks
- Employment verification
- Credit checks
- Reference calls
Do landlords approve tenant selection?
It’s wise to clarify if you, as the landlord, want to have final approval over tenant selection. Some managers make the call themselves, while others like to involve the owner.
And if you have specific criteria, like no pets or students, confirm the manager enforces your preferences.
Ask how they handle emergencies
Emergencies can strike at any time, and how they are managed can significantly impact your property’s condition and your tenants’ satisfaction.
Understanding a property manager’s emergency protocols helps guarantee that you’re not left in the dark when urgent situations arise.
How do you handle necessary repairs in an emergency, and do you seek landlord permission beforehand?
Look for agents who prioritise swift and effective responses to handle urgent repairs immediately to prevent further damage.
Property managers also typically ask a landlord for permission to incur significant expenses. However an experienced team might make certain decisions on the spot when necessary to save time and hassle.
Ask about their bond policies and payment frequency
The policies around bonds and rent payments directly impact your cash flow and financial security as a landlord.
What are your bond policies, and how much bond do you collect at the start of a tenancy?
In New Zealand, the regular bond amount for short-term tenancies is four weeks’ rent. However, some property managers may have other policies, so check their approach. A good property manager should collect the highest possible bond to protect your interests as a landlord.
How often will landlords be paid rent?
As a landlord, you want to know how often you’ll get rent payments from your property manager. That way, you can count on a steady income from your rental properties.
Ask about their legal and property market knowledge
Property managers protect and increase your yields by staying on top of the ever-changing rental laws and regulations.
What support do you offer landlords in terms of legal compliance and regulatory updates?
A great property manager should clearly explain how they’ll protect your properties and follow laws when they change.
How do you stay updated on market trends and changes in rental laws?
Ask for evidence that they actually analyse rental data for your area. The best operators will be able to show examples of how their data-driven approach has benefited other landlord clients.
Make the right choice with Harper Properties
At Harper Properties, we pride ourselves on our commitment to transparency, proactive communication, and stringent tenant screening processes. With over 40 years of combined experience, we manage properties with the same care and dedication as if they were our own.
Our competitive rates, comprehensive compliance handling, and advanced tenant screening technology set us apart, ensuring your investment is protected and your rental returns are maximised.
Contact Harper Properties today at 093612810 or auckland@harperproperties.co.nz to schedule a consultation and experience the peace of mind that comes with partnering with a trusted and reliable property management team.