Investing in Property – Know Your Options
People chose to invest in property for a variety of reasons. Often they chose this avenue to build a retirement portfolio whilst they continue to work a full-time.
Because having a life, a family, plus a full-time role is enough to focus on, investors subsequently chose to appoint a property manager to deal with the challenges of owning an investment property, such as, managing both the property and tenants. Trust me, it is a challenging profession and requires specific knowledge and skills.
There are many things to consider when investing in property:
- Time Consuming - Quality property management demands time, it is a full-time job. The variety of tasks are very time consuming, inspections, viewings, marketing, paperwork, rent control, repairs and maintenance.
- Legal Consequences - No longer ‘making it up’ or ‘having a go’ will do. There are onerous requirements on landlords and severe financial consequences for not abiding by the law.
- Sound knowledge – The Residential Tenancies Act is vital for any property investor and ignorance is no defence in court. From the outset of the tenancy agreement till the end, documentation is key to success. Tenants are very educated on what landlords are and are not allowed to do. They can and will seek damages via financial compensation for any failure to meet their responsibilities as a landlord.
Between these three considerations alone, time and legalities, often landlords find out the hard way that this is not everyone’s cup of tea and suffer from the loss of income from rent arrears, ‘runners’ by tenants, long term undetected damage to name a few, before then turning to a professional.
Sadly the reality is that some tenants will often target private landlords as they lack the systems and services that ensure a higher level of accountability.
Finding the right property management firm is as key a decision as the initial tenant selection is.
A professional property management firm will display behaviour worthy of your trust with clear communication and will focus daily on maximising the returns from your hard earned asset whilst you focus on your own profession, family and lifestyle. For more information speak to your professional property manager.
Celia Burbery Property Management Business Development Executive Ray White NZ
Tags: Celia Burbery, Investing, investment property, Loan Market, property manager, Ray White