How to select a property management company

24 June 2024

property management meeting

Selecting a property management company is a crucial decision for property investors and owners in New Zealand. The right company can ensure your investment is well-maintained, tenants are satisfied, and your returns are maximised. Here are key steps and considerations to help you make an informed choice.

Research local expertise.

When selecting a property management company, prioritise those with extensive local knowledge. New Zealand has unique property laws and market conditions, and a company that is well-versed and an expert in these aspects can manage your property more effectively. 

Understand their services.

Property management involves numerous tasks, including tenant selection, rent collection, maintenance, and compliance with local regulations. Ensure the company offers comprehensive services that cover all your needs.

Some companies offer detailed services, including regular property inspections and financial reporting, which can be crucial for maintaining the value of your property. Hammond & Co is a prime example of a company that provides a broad range of property management services.

Evaluate their communication.

Effective communication is vital in property management. The company should be responsive and keep you informed about your property's status. Assess their communication methods and frequency.

Advice: Ask about their reporting system and how often you can expect updates. Regular, transparent communication helps build trust and ensures you are always in the loop.

Consider their fees. 

While cost shouldn't be the sole factor, it's essential to understand the fee structure. Compare the fees of different companies and what those fees cover. Be wary of hidden charges.

Insight: Typically, property management fees in New Zealand range from 7-10% of the weekly rent.

Check for compliance. 

Ensure the property management company complies with all relevant New Zealand regulations, including the Residential Tenancies Act and the Healthy Homes Standards. Non-compliance can lead to hefty fines and legal issues.

Resource: The Tenancy Services website offers detailed information on landlord and tenant responsibilities and compliance requirements.

Interview potential companies. 

Before making a decision, interview potential property management companies. Prepare a list of questions to understand their processes, experience, and approach to handling issues.

Questions to Ask:

● How do you handle tenant screening?

● What is your procedure for dealing with maintenance requests?

● How do you ensure compliance with local regulations?

● Can you provide examples of how you’ve successfully managed challenging situations?

Look for value-added services. 

Some property management companies offer additional services that can enhance your property's value, such as renovation advice, market analysis, and investment strategies.

In summary.

Choosing the right property management company in New Zealand requires careful consideration and research. By evaluating local expertise, understanding services, assessing communication, considering fees, ensuring compliance, interviewing potential companies, and looking for value-added services, you can find a company that will manage your property effectively and enhance your investment returns.

For further reading and to explore more about property management in New Zealand, visit the New Zealand Property Investors' Federation (NZPIF) for valuable resources and information.

By following these steps, you can select a property management company that meets your needs and helps you achieve your property investment goals.

Hammond & Co is a specialist property management company based in Auckland. Our purpose is to navigate the increasing complexities of long-term property rentals, delivering optimum outcomes for owners and tenants through our tailored property management approach. Contact Hammond & Co for expert advice on getting the most from your property investments.

-

Gina Colcord

Business Manager

Gina Colcord is an experienced Business Manager in property management with over 16 years of experience. She has worked across various property types and has been recognised for her achievements, including being a finalist for the REINZ Business Development Manager Award in 2020 and previously winning the LJ Hooker National Award for Best Property Investment Management in NZ.

You can contact Gina on 027 266 8367 or emailing gina@hammondandco.nz