Property Management vs Managing Yourself
Managing Your Rental Property: Pros and Cons of Going Solo vs. Hiring a Pro
Owning an investment property in New Zealand opens doors to financial security and wealth creation. However, the day-to-day management of that property requires significant effort and expertise, especially with the evolving regulatory landscape. Let's weigh the pros and cons of taking the reins yourself versus partnering with a professional property management company.
Going Solo: Taking the DIY Route
Pros:
Cost-effective: You avoid the management fees associated with professional services, maximizing your rental income.
Direct Control: You have full control over every decision, from tenant selection to maintenance choices.
Personal Touch: You build a relationship with your tenant, potentially fostering a more understanding and flexible environment.
Cons:
Time Commitment: Managing a property is a time-consuming endeavor, encompassing tasks like advertising, tenant screening, rent collection, maintenance coordination, and regulatory compliance.
Legal Expertise: Understanding and adhering to the ever-changing RTA requirements can be complex and potentially lead to legal issues if not navigated correctly.
Limited Network: Finding reliable contractors, negotiating competitive rent, and efficiently managing finances might require more legwork compared to utilizing established industry connections.
Partnering with a Pro: Letting Experts Take the Wheel
Pros:
Peace of Mind: Property managers handle the day-to-day tasks, freeing up your valuable time and reducing stress.
Compliance Expertise: They stay current with legal regulations, ensuring your property adheres to RTA standards and protecting you from potential fines and legal ramifications.
Tenant Expertise: They leverage established screening processes to find high-quality tenants, minimizing vacancy periods and reducing risks associated with problematic tenants.
Market Knowledge: They possess a deep understanding of the local rental market, allowing them to negotiate favourable rent prices and maximize your returns.
Network & Resources: They have established relationships with reliable contractors, offering access to cost-effective and timely maintenance solutions.
Financial Management: They handle rent collection, manage outgoings, and provide regular financial reports, keeping you informed and organized.
Cons:
Management Fees: You incur fees for the services provided, impacting your overall rental income. These can range from 7 - 9%
Limited Control: You relinquish some control over day-to-day decisions, relying on the expertise and judgment of the property manager.
The Choice is Yours:
Ultimately, the decision to manage your property yourself or partner with a professional comes down to your individual circumstances, risk tolerance, and available time.
If you value time, peace of mind, and professional expertise in navigating the complexities of property management, partnering with a reputable and qualified property management company might be the smarter investment strategy.
Remember, a well-chosen property management company can become a valuable partner in maximising your rental income and securing your investment for the long term.
Wolfe Property recommends Property Scouts who have nationwide teams and they go above and beyond for our clients