Should I use a property manager?
You're a landlord property investor with a property or two.
You've bought these as long-term buy and hold investments, waiting for the houses to increase in price.
And as you're patiently waiting for your properties to make you a property millionaire, you've got tenants in to pay your mortgage and look after the property.
But, then the rent stops coming in. The tenants, who seemed so nice when you interviewed them, turn out not to be as great as you first thought ... in fact, they could have been featured on that old TV show, Renters.
All of a sudden the investment that's supposed to secure your financial freedom is causing you headaches.
You're not into this. The time, the effort, the late-night worries ... knowing that you're going to have to have a tough conversation with your tenant in the morning. And that's if they pick up the phone.
Reluctantly, you decide to sell early and swear off investment property for good.
Sadly, you don't get any of the capital gains you dreamed about when you first bought the property.
So how do some people buy 100's of rental properties, while others struggle with managing one?
The reason some investors end up with a large portfolio and happily sleep at night, while others will lie awake dreading the next day is this. Successful property investors outsource the management of that rental property to someone else.
A property manager.
A good property manager will take on that effort to save you the time and the hassle of managing your tenants and maintaining the property.
That means that property investors can hold their properties over the long term so they can get the long term gain in prices that comes from property ownership.
Someone you trust will be looking after the property, finding tenants, making sure the lawns are mowed, ensuring the rent is paid and in your bank account, and going through the property every 3 months to inspect it. That means that you'll have the confidence that the property is well looked after and your insurance isn't void.
What Does a Property Manager Cost?
A property manager typically charges a percentage of the rent to manage the property. This can range from 7% + GST - up to 12% + GST.
On top of this, some property managers will charge additional fees for other services. These are sometimes charged for organising maintenance or inspecting the property.
Here at Venture Management, we don't like that model. That's not just because it's not open and honest. But, because our goal at Venture is to make sure that you can hold your property for the long term without stress.
If we charge you additional fees for inspections or other services, then you might think "I don't need an inspection this quarter, I'm sure it's fine." But, if that voids your insurance, and then you run into an issue, you may be discouraged from holding the property over the long term.
That's why we charge one fee – 9.99% + GST* of the rent on your property. And that includes:
- The property is inspected every quarter, which you'll receive a full report on
- No Tenant Sourcing Fee - Marketing and processing of applicants to find you the right tenant for the property.
- Ensuring your rent is up to market standards so that your property is as profitable as it can be
- Your maintenance organized so that the property stays at its current standard
- Rent being checked and paid into your bank account every fortnight
- Dealing with any problems or questions from the tenants
- When they need to happen, we are the ones that have the hard conversations with tenants on your behalf
And much more.
Ultimately, this allows you to focus on growing a property portfolio, rather than managing your properties.
* Additional costs apply for compliance and extra services.
Ready to Get Started?
If you want to give up the hassles, time commitment and effort of managing your property yourself, then click the button below to book a rental appraisal of your property.
Who are Venture Management?
We won't lie. Property management is hard work. And we are a close-knit team of 8 hard-working property managers.
We've been helping investors and rental property owners sleep easy while their property goes up in value for the last 6 years, covering Christchurch, Auckland, Hamilton and Tauranga.
We also know a bit about property investment and how to make property investment work for you. Our sister company, Opes Partners has helped over 1,000 Kiwi mums and dads become property investors.
Through that, we've learned what rental property owners really want from a property management company, which is why we've introduced policies like our flat-fee, low-cost structure because we know property investors benefit from knowing exactly what their outgoings are each year.