Investor Article

What do Property Managers do?

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Author: Oliver Pearson

Manager and Property Investor for 20+ years

May 27, 2020
Property manager on motorbike

In the broadest terms, and as described by Tenancy Services, a property manager is “the landlord’s agent who looks after their investment”. In practice, acting as "the landlord's agent" means a property manager's role encompasses a wide range of responsibilities, some of which we have outlined below:

 

Leasing the Property

A good property manager will:

  • Market a property for rental in a creative manner with a view to minimizing days on market
  • Conduct successful open homes and provide market feedback to the landlord
  • Verify all information and references provided by tenancy applicants within 1 working day of receipt
  • Screen all tenancy applicants on national tenancy databases

 

Rent Payment and Arrears

Proactively managing the collection of rent and the management of tenants in arrears is vital to the landlord’s economic return.

A good property manager will:

  • Identify, manage and remedy rent arrears
  • Where necessary, negotiate and monitor payment plans

Tenancy Inspections

Tenancy inspections both define the condition of the property at the start and end of the tenancy and also serve as an important risk management tool to check on the health of an active tenancy.

A good property manager will:

  • Conduct routine inspections at the frequency agreed with the landlord (usually quarterly)
  • Carry out pre-tenancy inspections and exit inspections with utmost duty and care

 

Repairs and Maintenance

Coordinating repairs and maintenance on the property is one of the most fundamental roles of a property manager.

A good property manager will:

  • Review and triage maintenance issues with tenants or as requested by the owner
  • Issue work orders for maintenance promptly and follow up on all maintenance items frequently

 

Review, Renewal and ending the Tenancy

Proactively managing each tenancy’s lifecycle ensures good tenants stay, rent levels reflect the market conditions, bad tenancies are ended quickly and cash flow is maximized.

A good property manager will:

  • Conduct a Comparative Market Analysis on all properties with expiring leases
  • Review lease renewal documentation
  • Manage any bond disputes that may arise at the end of a tenancy

 

Breaches and Tribunal

When a tenancy does not go to plan then the property manager must manage the downside risks and the legal constraints while looking for good outcomes for stakeholders.

A good property manager will:

  • Be solutions orientated with a clear objective to settle any minor tenancy matters
  • Prepare tribunal applications and attend hearings
  • Ensure tribunal decisions are complied with

 

Risk Management

Responsibly identifying and managing landlords’ risks is an increasingly important skill, and is crucial for the long term property investor.

A good property manager will:

  • Work with landlords to ensure their properties are fully compliant with current NZ laws and regulations
  • Have an intimate understanding of each owner’s authorities and preferences
  • Have a commitment to demonstrating industry best practices
  • Display a mastery of tenancy laws and regulations and be committed to the implementation of best practice.
     

In terms of skills that a property manager brings to the table, we find our best property managers are well organized, proactive, detail orientated, knowledgeable and most of all, excellent communicators.

 

At Waikato Real Estate we firmly believe that clear and frequent communication between property manager and tenant, and property manager and landlord, is the single most important facet of good property management. Communication is the grease that keeps Waikato Real Estate’s wheels spinning!

 

Author Image

Oliver Pearson

Manager and Property Investor for 20+ years

Author Image

Oliver Pearson

Manager and Property Investor for 20+ years

Oliver Pearson began investing in property aged 21 and has since bought, developed and sold real estate in the UK, USA, South East Asia and New Zealand. After a career in banking he is now on the management team at Waikato Real Estate and has contributed to property articles for NZ Herald, Stuff and Property Investor Magazine.

Based in Raglan, Oliver's passions extend beyond property to surfing, hydrofoiling, and providing a taxi service for his children.

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