Earlier this month the real estate industry celebrated National Property Managers’ Day.

Hosted by REINZ, the day acknowledges property managers – the unsung heroes of the real estate industry – and their vital role in maintaining our communities.

The initiative is in part a response to absent regulation which might otherwise provide broad assurances about the standards of professionalism in the sector.

For years now Goodwins has lobbied regulators about the importance of industry regulation.  Sadly, nothing has changed.

Earlier this year, the government scrapped a bill designed to regulate property managers over concerns about unethical and unlawful behaviours.

Housing Minister Chris Bishop told Parliament’s Social Services and Regulations Committee that the cost-benefit analysis was marginal and uncertain.

The bill would have established a regulatory regime for property managers, including minimum entry requirements, professional standards of practice, and a complaints and disciplinary process.

So, we continue to operate in the wild west.

Real Estate Institute chief executive Jen Baird sums up how we feel: “In an industry where a modest one-person property management business can oversee assets totalling $60 million in retirement savings, it is inconceivable that such a significant sector remains unregulated,” she said. “No other profession handling assets of this magnitude operates without oversight in New Zealand.”

What a property manager does

Contracting someone to manage your residential property is a bit like hiring an accountant to do your tax returns. You could do it yourself, but it’s better to leave it to a professional. It might cost a bit, but you’ll often come out better off in the long run.

Before you sign on the line, get your agreement in writing. You need to understand fees, reporting, access to information, responsibilities for things like rent reviews, finding and choosing tenants, marketing costs, the process for repairs, and so forth.

In short, a good property manager will ensure you attract and keep good tenants, maximising your returns, and preserving the value of your asset.

The main tasks of a property manager.

  • Find the best tenant: Conduct a property assessment to determine market rent and ideal tenant; instigate a database search and advertising campaign to promote the property; organise viewings; narrow down candidate list; conduct background checks; make a final selection; manage contracts and access, including key handover.
  • Collect rent: Collect rent on behalf of the owner; monitor payments; remedy rent arrears; transfer net rental funds to owner; provide statements and reporting.
  • Maintain property and manage repairs: The property manager is responsible for keeping the owner’s property up to the required standard specified by the Residential Tenancy Act. They’ll also manage tradespeople to conduct repairs in a manner that meets Health and Safety requirements.
  • Satisfy legal standards: Operating a rental property comes with legal obligations set out under the Residential Tenancy Act, which also includes Healthy Home Standards. The property manager will be conversant with the legislation, including recent changes, such as the reintroduction of 90-day ‘no cause’ terminations, the return of landlords’ notice periods for ending a periodic tenancy to 42 days, and new heating, ventilation, moisture ingress, and drainage standards.
  • Execute property inspections: Regular inspections ensure your property is being cared for, identifies necessary repairs, and provides the opportunity for tenants to flag any issues. Regular inspection reports will also be requested by your insurer to support a claim.
  • Oversee the termination of rental agreements and re-tenanting: A property manager will manage notice periods; schedule viewings; conduct a property inspection to identify damage beyond reasonable wear and tear; organise bond refund and manage reletting

How to select a property manager

Are you dealing with a pro? Here are some questions you should ask:

  • How long have you been managing properties in the area?
  • What qualifications do your property managers hold?
  • How is your team structured and what are the main support processes?
  • What computer system and software do you use?
  • Are you a member of a professional body with a code of ethics?
  • How many properties does your business manage? How many are currently vacant?
  • What kind of insurance coverage do you have?
  • Can I see an example of a monthly reporting package?
  • Have you appeared in Tenancy Tribunal cases? If so, what happened?
  • How do you keep up to date with changes in renting law?

Don’t put your investment property into the hands of a cowboy operator. Get a property management pro on the job. Call 0800 GOODWINS.