Property Managers

Hey Everyone,

I'm interested in knowing how people who use a property manager initially found them. I live in Auckland and there are 100's of property managers here alone. How do you go about selecting the best one? I have read all the articles on what to look for in a property manager, but just getting their details seem hard to me, other than just looking up every website from every PM.

Any tips are greatly appreciated!

Ask ask ask around people who use them. Should be able to get a good manager for re 7% of rent.But beware extra , hidden charges like repairs. I know of a chimney flue that needed replacing in a rental and the prop manager charged $150 in "managing "the fire guy who did the repair.!!! Re $30 for property inspections .

Hey,

Thanks for the response! Is there any other way to research this? Other than asking peers? I'm a little low on peers and asking the forums has given me some idea but there is so much random info out there it doesn't seem to do me any good.

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Originally Posted by QuickPickNZ

Hey Everyone,

I'm interested in knowing how people who use a property manager initially found them. I live in Auckland and there are 100's of property managers here alone. How do you go about selecting the best one? I have read all the articles on what to look for in a property manager, but just getting their details seem hard to me, other than just looking up every website from every PM.

Any tips are greatly appreciated!

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Search for the Auckland Property Investors Assn and go along to their next meeting. Members have great knowledge... Many manage their own, but many are like me, I contract it out as in my case 4 residential rentals doesn't justify my doing regular inspections, researching tenant background/renting history,keeping up with tenancy law etc. Besides, it works best for me to manage the property manager rather than my tenants individually. I'm not invested in Auckland so don't know the managers there. But, I can tell you a good property manager is invaluable, so it is worth going to some trouble to find out who has the "real" skills in your area. Remember if you are going to part with 8-9% of your rental income to have the property managed you want great results. All the best for your property journey.:)

Hey Malus,

Thanks for the info. Had a look at their website and I'm a little deterred by the fact I seem to have to pay to be part of it. I'm subscribed as a free member which gives me 0 access to any of the information available. I get that making an investment is part of the process, but I don't really know why I have to pay to access a forum. In general, where do the collected funds go? What are they used for?

Hi QuickPick,

Sorry for the delay in reply, been busy with a few projects!

Noting your concerns about Auckland Property Investors Assn (APIA) cost of membership... I guess it depends on what value you gain over time (being a member of APIA) relative to your planned future residential (and possibly commercial) investing.

Membership fees go to general running of the Assn's member activities, with $57 capitation to the NZ Property Investors Federation.

Like most I started out with one residential and managed myself, wasn't until I joined the local Property Investors Assn I began understanding this particular business sector I was in. My focus changed as I appreciated the risks.

Being a member introduced me to a number of contacts, who I assessed over time, observed what they were doing and refined my approach.

I quickly learnt there are many property managers out there, some better than others, some you don't want minding your business! Choosing the right manager with proven experience is invaluable.

I believe my membership cost (which is deductible as a business expense) has enhanced the quality of my residential and commercial property returns. In my experience it's a good place to "sort out the wheat from the chaff".

Many people are accidental residential property investors, perhaps through inheritance or shifting for work and not being prepared to take the sale price offered etc. The ride can be a bumpy experience and you can soon find the horror stories on line. Owning residential property (even just one) and renting is a business and like all business's there are risks to manage to get a good outcome.

I'll private message you an APIA contact phone number for you to talk more about the issues you have and the benefits membership might bring.:)

Hey Malus,

Again thank you very much for your response! You have well answered my questions in regards to the importance of making the investment to join an organization like APIA. Guess everyone needs some guidance and learning from people who have done it is invaluable.

In regards to property managers, I've been told a few times that going with an independent property manager like the ones associated with the IPMA is a good bet. Do you have any insight to why those would de better than the bigger names? Ray White, Harcourts, Crockers,..

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Originally Posted by QuickPickNZ

Hey Malus,

Thanks for the info. Had a look at their website and I'm a little deterred by the fact I seem to have to pay to be part of it.

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Lesson One: when you have a rental property you are in business. Treat it as such.

Lesson Two. When in business you have to spend money to make money

Lesson Three. Good advice is available for free but sometimes you have to pay for it. An industry association is going to be about as cheap as it gets. (costs wil be tax deductible - assuming you are out to make a profit)