You, Your Property Manager and Your Tenant
It may not be obvious at first, but investing in real estate is actually all about relationships. There is the relationship between your property and your location, the relationship between the government and your investment, and then there is the most important one: the three-way relationship between the landlord, the property manager and the tenant.
If this is an effective relationship, it will have benefits for everyone: the tenant will have a great place to live, the landlord will have regular rental income and the property manager will have happy clients on both sides. However, when this relationship goes wrong, it can affect the viability of your entire investment.
Here’s some more information about this investment relationship and how you can get it right.
The Landlord and the Tenant
From a purely financial perspective, a tenant is a landlord’s source of rental income, the steady supply of money that can hopefully result in a cash-flow positive investment.
However, beyond the numbers alone, the landlord and the tenant can have a lot more to do with each other, especially if you’re taking care of rental property management yourself. The very act of having a tenant involves:
- Finding an appropriate tenant – including advertising, interviewing tenants, performing background checks and signing a residential tenancy agreement
- Dealing with financial matters – including taking a bond, obtaining rent from the tenant, dealing with delays in rental payments
- Property maintenance – including reasonable renovations, upgrades and repairs, as well as regular property inspections
- Complying with regulations – including health and safety requirements for the property and ensuring privacy for the tenant
As you can see, managing a landlord-tenant relationship can be incredibly involved, and the list above is just scratching the surface. However, that’s usually where a property manager comes in.
Residential Property Management and Tenants
Landlords turn to property managers for their expertise, their hands-on service, and their communication. They can fulfill all the duties listed above and more, liaising with the tenant from the very beginning. In some cases, a tenant may never meet their landlord in person when a property manager is involved. The property manager will:
– Interview and screen tenants
– Be the point of contact for maintenance concerns
– Ensure consistent cash flow through rent collection
– Deal with any disputes the tenant has
– Handle any termination issues if necessary
For a tenant, a great property manager is a responsive professional who gets things done and for a landlord, a property manager saves them time, money and stress.
The Landlord & Property Manager Relationship
Just like a lawyer or an accountant, landlords should look for a qualified, specialised and local property manager. It’s important that the property manager prioritises communication, accessibility, low vacancy rates and comprehensive services.
A property manager should be able to help a landlord maximise their ROI in a range of ways, from competitively pricing their rental to selecting the ideal tenant and performing property inspections. Certain guarantees can also go a long way in setting a great Auckland property manager apart.
Above all else, a property manager will offer great communication and services for both the tenant and the landlord, ensuring everyone is happy and profiting from the arrangement.
Finding the Finest Property Management Companies in Auckland
The landlord, the property manager and the tenant truly are a trilogy, and like any great trilogy, the one in the middle ensures the best results. For the finest property management services in Auckland, talk to Walker Weir Property Management. We are a locally owned and operated team that is proud to offer a no-risk rental guarantee.
January 14th, 2018