Quinovic

Top 10 hazards of bad property management

When selecting a property management company it’s important to make an informed choice. Here we share the top 10 items to consider when handing over your financial future.

1. COST V’S SERVICE
A good property manager will earn you money on your investment, while a bad one will cost you dearly. Engaging a good property manager is priceless. It may be worth paying a little more for a manager doing an outstanding job, rather than below value for one not worth anything.

2. BAD COMMUNICATION
Lack of communication can cause major issues, including situations escalating to litigation before you are aware. Communication is important on all aspects of management from maintenance concerns to tenant selection processes. It pays to have Landlord Insurance in place for added protection.

3. SLOPPY SERVICE
You shouldn’t have to manage your manager. Particularly once your portfolio grows, it is not possible to constantly assess rental statements – that’s what you pay the manager for. The property manager should ensure rents are on time and take action when they are not. You should not have to step in and manage on your agent’s behalf.

4. TRUSTWORTHY
There have been occasions of dodgy property managers dipping into accounts. You must have trust in the people managing your property – if it doesn’t feel right, it probably isn’t.

5. EARNING THEIR FEES
Property managers should be completing regular inspections to avoid major issues developing. As discussed already, communication of these inspections and any items discovered is a basic requirement of good property management.

6. QUALIFIED
Ensure their staff are trained and qualified to a satisfactory standard and that they have been established in the area for some time. It’s also good to meet the property manager who will be in charge of your property.

7. MARKET AWARENESS
Always ensure property rents are up-to-date with current rental market value. Good property managers will conduct regular market rental reviews and ensure the ‘right’ tenants for your property.

8. POOR ADVERTISING
There are still some property managers with no website and no active advertising – this should set off alarm bells. Most decent property managers engage websites like trademe.co.nz and realestate.co.nz as a minimum. If they’re not, you need to ask yourself why they’re not spending the money to be a part of a significant lead generator for your property.

9. WHERE DO THEIR LOYALTIES LIE?
Is the Property Manager working on behalf of the landlord or the tenant? A good property manager must always have the interests of the landlord at heart.

10. THE RIGHT ADVICE
Overall, your property manager is responsible for ensuring the best possible rental return for your investment, so it is important they are able to provide the best advice for your property.

If you have any questions or other comments on this topic or anything else then let us know about it in the comments section below.


What expenses should I be claiming for on my investment property?

Do you want to reduce your end of year tax bill and increase your yield on your investments? We want to help ensure you know what expenses you are able to claim to reduce your costs and increase your profits. This will require good record keeping so ensure you make a plan at the start of the new business year to have everything you need come tax time.

Insurance and rates

  • Insuring your rental property is a must, and what’s even better is that you are able to claim back the cost of this on your end of year tax amount. The rates for your property are also an expense you can claim.

Interest

  • The interest that you get charged on money you borrow for your rental property is able to be claimed back. However, this excludes any money which was borrowed for another purpose or if the mortgage is topped up for another purpose.

Fees and commission

  • If you have decided to have your property managed by a rental company you are able to claim the fees/commission paid. If you don’t use management services but pay letting agents to find you a tenant this is also able to be claimed on.

Accountant fees

  • Unfortunately the costs involved in setting up your rental property are not able to be claimed however you can claim for your accounts to be managed, tax returns to be prepared and advice.

Repair and maintenance costs

  • General maintenance to your rental property is able to claimed however if you are carrying out the work yourself, then only the materials can be claimed – not the labour.
  • If the work being carried out isn’t classed as a repair, but more of an improvement or upgrade then this cannot be claimed as an expense.

Motor vehicle expenses

  • The running costs of travelling to inspect your property or carryout repairs can be claimed on, this can be done in one of two ways. You can do it by using kilometer rates, or claiming a percentage of the total running costs and depreciation.

If you want to deal with independent property management specialists who’s sole focus is the upmost care of your property whilst obtaining the highest yield possible on your investments then call Quinovic Mt Eden today.