Joining a property management company ensures hassle-free rental returns with a higher return on investment. With your property in the hands of seasoned professionals, the overall risks involved are reduced, suitable tenants are acquired more effectively, and your property is sure to stand out in the market.
While some landlords opt to self-manage their rental portfolio, they are also personally responsible for all forms of communication, marketing, property viewings, tenant vetting, letting, rent collection, urgent repairs, inspections, and many other tasks. Self-managing demands considerable time and energy, something that will also amplify if additional properties are added to your portfolio.
Ensuring you remain compliant with relevant legislation is another essential requirement for rental properties. Given the government’s growing number of rules for landlords, compliance risks need to be monitored regularly to stay on top of the game. Property management companies like Hammond & Xo know the ins and outs of renting a residential property and can set you up for success from the beginning of your journey. All you have to do is sit back, relax, and invest your free time in the areas of your life that truly matter.
What does a property manager do for you?
A property manager oversees all of the workings of a real estate investment. They provide expert advice to maximise a landlord's rental returns while remaining compliant with legislation to reduce any financial risks involved. Every aspect of a tenancy is taken care of by a property manager, from acquiring new tenants to completing regular inspections, collecting rent, dealing with repairs or maintenance, and ensuring rental properties meet the appropriate standards for both past, present, and new rental regulations.
Lack of experience in the rental industry can have a negative impact on a landlord's rental returns, from the undervaluation of rent to extended vacancies between tenancies. A property manager works with landlords to minimise financial risks through their extensive industry expertise.
With the most recent regulations for Healthy Homes and ongoing government scrutiny in the rental sector, the compliance regulations for rental properties are becoming increasingly complex. A property management expert has in-depth knowledge of rental legislation and laws, safeguarding a landlord's investment and ensuring they remain compliant at all times.
Rent arrears, bad tenants, and disputes can occur for any number of reasons and must be proactively mitigated to avoid adverse effects on rental income. To ensure success from the get-go, a property manager will implement a thorough vetting process to find suitable tenants alongside rent management processes to reduce financial risks.
Landlords can expect a property manager to:
- Personally meet any prospective tenants to show them through their rental property
- Ensure all interested parties complete an application with express permission to verify their information
- Use industry-leading technologies to perform
- Credit checks
- Tenant database checks
- Verify their employment status
- Review any Ministry of Justice tribunal orders
- Contact landlord references
Your property manager will use the information they have collected and their expertise to make a shortlist of prospective tenants for your property and often make a recommendation. Still, you will have the final decision on which application to accept. Legally we do not have to give a reason why an applicant was unsuccessful. Typically, we will only notify successful applicants unless otherwise specified.
Move-in costs and rent
It is standard practice for tenants to pay all move in costs before occupying a rental. A property manager will ensure this is a seamless process for both tenants and landlords. Alongside the tenant, they will organise:
- Rent: One to two weeks of rent paid in advance, plus a compulsory direct debit for future rent payments
- Bond: Up to four weeks of rent rent can be collected from new tenants as a security deposit for rental properties. A property manager works with landlords to establish the appropriate amount of bond for their properties. They will also collect the bond from the tenant and lodge it with Tenancy Services on behalf of the landlord and tenant.
Rent collections and payments
During a tenancy, rather than worrying about missed payments and ensuring the correct amount is paid each week, a property manager will collect a tenant's rent and organise a deposit to the landlord.
If rent arrears do occur or tenant's have any issues with a bond reduction at the end of their tenancy, property managers will handle the missed payments, any bond disputes, as well as potential evictions if needed. As residential rental property experts, this will save owners time and money in the long run.
Maintenance & repairs
If any maintenance or repair issues arise, property managers are a tenant's first point of contact. If an immediate resolution cannot be found, they will automatically begin the repair and maintenance process and keep both the landlord and tenant well informed on what's happening.
A property manager will thoroughly inspect your property on a regular basis to ensure it is in good shape before, during and after a tenancy. This includes pre-tenant inspections, routine inspections during a tenancy, and a final inspection once a tenant has vacated the property.
Landlords need to keep in mind that the majority of home and contents insurance policies require a certain number of inspections to be carried out each year. Hammond & Co typically completes property inspections at least once every three months (13 weeks). If you decide to take on the services of a property manager, we would advise any landlord to check the policy wording of their home and contents insurance so they know the frequency of inspections needed.
Lease renewals and changes
A property manager is responsible for managing a tenancy from start to finish, including the signing of a Residential Tenancy Agreement, lease renewals, or any changes to a tenancy. In most cases, a tenant will begin their tenancy on a fixed-term lease, typically lasting 6 or 12 months. A property manager will touch base with a tenant nearing the end of their agreement to see if they are happy to roll over to a periodic tenancy, plan to leave at the end of the lease, or want to exercise their right to renew their fixed-term agreement if applicable.
With a professional property management company, landlords will only need to join the conversation if they wish to make changes to the agreement, or to approve any new tenants if the current tenant decides to leave.
If you own a property in New Zealand and leave the country for more than 21 consecutive days, the Residential Tenancies Act requires you to have a local agent managing your property. They will ensure your tenants have a point of contact at all times and manage all of your legal responsibilities as a landlord.
What can Hammond & Co offer landlords?
At Hammond & Co, our team of experts understand that each owner’s property goals are unique. When you join our portfolio, we ensure you receive a personalised and responsive service that delivers consistent rental returns and income stability. Our comprehensive suite of property management services are available to all property owners within the Auckland region. These services include:
- Free rental appraisals
- Responsive owner and tenant communications
- Legislation compliance advice and support
- Strategic marketing of vacant and soon to be vacant properties
- Tenant screening and selection
- Ongoing tenant education and advice to ensure your property is well cared for
- On call tenancy law advice through NZ’s #1 tenancy law specialist
- Daily rent reconciliation and management
- Property inspections every 13 weeks
- Proactive and reactive maintenance
- Lease renewals
- Regular rent reviews - based on current market conditions
- Comprehensive financial reporting
- Mediation and hearing attendance
- Project management
- Online owner’s portal with 24/7 access to information on your rental properties
If you are interested in learning more about joining the Hammond & Co portfolio, you can email our Business Manager, Gina Colcord, at Gina@hammondandco.nz or speak to her directly by phoning 0508 426 326.