Property management seems like the simplest of roles… so why is it so frustrating?
Well, the landlord has provided sole right to what is probably one of their largest assets, so they need to deal with trust and transparency concerns. Tenants must deal with the uncertainty surrounding one of Maslow's most fundamental needs - a safe, comfortable place to call home. Add a third party, such as an agent or management company (looking to make money), into the mix, and it's easy to see why this can become a recipe for dysfunction and frustration.
Typical Problems in Property Management
- Slack systems or processes with poor record keeping so tasks end up forgotten and/or in a mess. Typically seen in: Self-Managed
- Frustration at paying high fees for what appears to be a super simple task and then having to get involved every time something goes wrong anyway. Typically seen in: Professionally managed
- Having to pay marked up prices on maintenance and other services - often these fees are not well disclosed. Typically seen in: Professionally managed
- Lack of control and having decisions taken without you being consulted. Typically seen in: Professionally managed
- Periodic nature of the work. Some months nothing to do and then the week you are busy or about to go away everything happens at once. Typically seen in: Self-managed
- Frustrated tenants due to inaction or poor communication. Typically seen in: Both self-managed or professionally managed
- Understanding and abiding by tenant and landlord rights and obligations. Typically seen in: Self-managed
From these problems, we can summarise..
3 three key components we need to have good management:
Communication
Communication is by far the most important of these components. The Chinese whispers and misunderstood intentions or preferences, which happen when landlords and tenants miscommunicate directly or through an agent, cause most tenancy frustrations. One of the most frustrating problems is an unresponsive tenant or landlord or property manager who is not clearly and promptly passing on information.
Most tenancy problems can be solved with good relationships. Too many landlords and tenants take an attitude of "what I can get away with" or "what my minimum rights and obligations are". They can produce short-term wins for either side, but this approach almost always backfires. When larger issues arise in the future, there is no basis to sit down and resolve them. Almost always, when things end up at the tribunal, both sides will lose in some way (even if they win in the tribunal).
Tenants and landlords can definitely work together and create a win/win relationship where the tenant has a quality, secure home and the landlord has a successful investment. There is no conflict in these objectives.
Reliable Systems
Great systems are the foundation of good property management. Having records, reminders, understanding the tenancy process and implementing them fairly and accurately. Great systems mean lower costs, better compliance, less leakage and lower risk. It should be the foundation of any property management service.
Having great systems is essential when you have 20 or more properties, but they are just as important for a landlord with 1 or 2 properties. In fact, 1 property landlords have more risk than those with 10+ properties because there is a big difference in losing 100% of your income vs 10% if something goes wrong.
Value
For most landlords, their mortgage will be their biggest cost and a cost (if they have done their financial research wisely) they have very little ability to make a significant reduction in.
For managed landlords, their second biggest cost will be their property management fees, and for self-managed landlords, it's usually a loss of rent due to poor record keeping or high tenant turnover.
Value in property management is very subjective for each landlord and their property; and is usually a trade-off between spending 8.5% on a manager or spending time and managing it yourself. Finding a balance is usually the key
How myRent solves these issues
Communication
- Notifications for tenants and landlords for every rental payment received or late, so everyone is completely up-to-date.
- Maintenance issues logged with photos and videos so there is no confusion about the seriousness or scope of the problem.
- Compliant, Customisable and Easy-to-Use Tenancy Agreement Builder with e-signing to help landlords save time and stay compliant.
- Automated bond lodgement and bond refunds with Tenancy Services.
- All tenancy documents landlords need created, e-signed and delivered digitally with ease.
- Bank feeds to record and reconcile rent and expenses automatically.
- Expense tracking, so no receipts are ever lost or misplaced.
- Digital inspection reports that can be created and e-signed through the app.
- Notifications with your options for renewing the tenancy.
- Reminders when rent review should take place.
- One dashboard available 24/7 where you can see everything you need to know about each of your properties
- Storage for all your tenancy documents and private notes
- One place to find all the information about a tenancy that maybe required by your accountant, lawyer or other professional advisor
Systems
Our system is purposely built for NZ tenancies from the ground up by people who are landlords or tenants themselves. It's designed to be simple, compliant and accurate. We have used the latest in app and web technology to bring the service into the 21st century and ensure that your information is safe and convenient.
Value
$50 tenant find service, $17/month property management software.... need we say more? Find that balance between using time and spending money.
We make landlords' lives easier. Partnering with industry experts, we offer on-site inspections, photography services, and discounts on insurance, gas, internet and more. Best of all? You don't even need to be a myRent customer to take advantage of these offers. Take a look at them now.
The information contained in this article is exclusively for promotional purposes. It does not in any way constitute legal advice and should not be relied upon as the basis for any legal action or contractual dealings. The information is not, and does not attempt to be, a comprehensive account of the relevant law in New Zealand. If you require legal advice you should seek independent legal counsel. myRent.co.nz does not accept any liability that may arise from the use of this information.
