Self-manage vs property manager

Paras asks:
(updated on Tuesday, January 30th 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 Experts Answer:

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 :) ]

Select Home Loans 4.29
TSB Special 4.34
ICBC 4.39
HSBC Premier 4.39
Heartland Bank - Online 4.40
China Construction Bank Special 4.45
SBS Bank Special 4.55
Kainga Ora 4.57
Co-operative Bank - First Home Special 4.75
Kiwibank Special 4.85
AIA 4.85
Select Home Loans 4.86
Heartland Bank - Online 4.90
TSB Special 4.99
ICBC 5.09
HSBC Premier 5.15
SBS Bank Special 5.19
China Construction Bank Special 5.19
Kiwibank Special 5.19
AIA 5.35
Co-operative Bank - Owner Occ 5.35
First Credit Union Special 5.45
Select Home Loans 5.20
TSB Special 5.75
Kiwibank Special 5.79
HSBC Premier 5.89
ICBC 5.89
SBS Bank Special 5.95
BNZ - Classic 6.19
Resimac 6.33
China Construction Bank Special 6.35
Westpac Special 6.39
Kainga Ora 6.43
Select Home Loans 4.09
Heartland Bank - Online 4.10
Pepper Money 4.49
TSB Special 4.79
Liberty 4.84
Kiwibank Special 5.00
ICBC 5.25
Kainga Ora 5.43
China Construction Bank 5.50
Kiwibank 5.50
Kiwibank - Offset 5.50