Pros and Cons of Hiring a Property Management Company in Auckland
Posted: Feb 20, 2016
Owning a lucrative investment property in Auckland is a great way to create passive income, build your financial portfolio, and increase your overall assets. If you are getting ready to enter the landlord game, you must be wondering if it’s more prudent for you to hire a property manager or just manage your new rental by yourself. Like everything in life, there are pros and cons to each strategy.
The Disadvantages of Hiring a Property Manager in Auckland
The only disadvantage you have to consider when working with a property management company in Auckland is the cost. Terms vary, but on average, property managerstake 8% to 10% of the monthly rent as payment for their services. Some might also take the first month's payment to cover their money they shell out for advertising and showing your rental property, processing applicants, as well as credit administrative costs that are involved in new accounts.
To ensure that your investment property remains profitable despite these management costs, be sure to do the math and test for feasibility.If the numbers work and you don’t have to supplement costs to the property manager to keep your property, then it’s a workable arrangement. It also helps to confirm all expenses before you sign a contract with a property management company in Auckland. It always makes good business sense to communicate everything on the front end.
The Advantages of Hiring a Property Manager in Auckland
The pros of using a property manager far outweigh the cons. First of all, these exerts are up to date on laws and regulations involving tenant/landlord responsibilities and requirements. If you manage your property yourself, you might end up in violation of some laws and putt your property—as well as your finances—at risk.
Property managers can also establish the best market rental rate to ensure that your property remains attractive to renters while being profitable. The Auckland rental market is fluid; rates change in a matter of months. A property manager can see to it that you’re getting the highest possible rent based on market markers.
Of course, property managers will serve as the intermediary between you and the tenant. They will take care of everything from the interview process down to managing emergencies and complaints that may arise in the middle of the night.
Your property management company will also find and screen good tenants. If you are all by yourself, you might inadvertently accept an irresponsible tenant—and commit financial suicide in the process. A manager can screen out risky tenants so that you can rely on a steady income from your investment property.
a href=http://vipproperties.net.nz/Vip Properties is a property management and maintenance company. Their team members are knowledgeable, understanding, and they provide a unique approach to this business.