Self-manage vs property manager
Question from Paras updated on 30th January 2018:
I have bought an investment property in Epsom which is just two kilometres away from where I live. Should I manage the property myself or should I give it to an agency? What are the pros and cons of each option? Please advise.
Our expert Kris Pedersen responded:
There is a lot of increased regulation hitting landlords at the moment and you need to be aware that the law and general mood is definitely favouring tenants. This can be seen when looking at the Tribunal statistics in regards to who is actually causing most of the problems. Taking this into consideration it then comes down to whether you want to put the effort in to make sure you are up with all the requirements or whether you would like to offload this hassle. Besides this it is a case of whether you are happy to have the tenant contact you at times that may not suit if there is urgent work required.
While property management looks simple from the outside there are a lot of components that need to be done correctly – such as marketing the property effectively, qualifying the tenants, doing suitable inspections, handling maintenance enquiries, etc. I've always believed that property management is actually more about effective "people management" and attention to detail so take that into consideration if you think these are skillsets you possess. Otherwise you might be better placed to outsource this to a good property manager.
[Disclosure: I own a property management company so may be conflicted slightly here :) ]
Kris Pedersen of Kris Pedersen Mortgages is a commentator on property and finance. His team sources top finance strategies. www.krispedersen.co.nz