Enhancing Residential Investment Property Rent Returns

Property Magazine International printed an article this week about enhancing private rental sector returns from the third quarter Young Index. The article gauged landlords views on the value of professional property management and its impact on residential investment returns.

Stats are for London but the trend is definitely reflected in Auckland’s investment property market.

Here are the trends:

76.6% of landlords believe that tenants pay higher rent for properties that are managed by professional property managers

82.9% of landlords believe that average tenancies are longer for property that is professionally managed

73% believe that professional property management enhances capital value

85.7% believe that professional property management is money well spent

77.6% recommend using professional property managers

81% spoke to use a professional property manager

17.2% only, manage their own properties.

The percentage self managing their properties is probably higher in the New Zealand rental property market due to the Kiwi do it yourself mentality in the name of cost saving. False economy?

In our experience properties we manage:

  • are well maintained so attract & retain good tenants and enhance property value
  • attract above average rents and with 6 monthly rent reviews ensure the best return and well and truely justify management fees
  • attract higher than average rents at letting time because tenants are not faced with letting fees.

Contact us for rental appraisals and management proposals , rental houses, rental units, rental townhouses, apartment blocks in Auckland.

Mary and David Vinsen and our team at Quinovic Parnell, Thomas Goehring, Gordon Walker, Chris Fleming.

www.quinovicparnell.co.nz

More on Rent Arrears…

Having written last week on “How to Achieve Zero Rent arrears” I was amazed to discover two friends whose rental properties had fallen into serious arrears while being managed supposedly by professional property managers. Sadly we hear the same story time and time again so this was just another example (two more actually) Why would any landlord accept tenants who fall behind in their rent payments. Well example number 1. Owner of a very nice 5 bedroom home under-rented, managed by a property manager who was under resourced to cope with the business, did no inspections in a year, did not review the rents and allowed rent to be in arrears to the tune of $9000?? The question is why? Why does an owner put up with it? They said they didn’t want to lose the tenant in case they couldn’t find another one?? But worse still, they didn’t want to terminate the agreement with the property manager because the property manager was a friend and was cheap!!  Example number 2. Property investor with several rental properties, some managed by property management company and some self managed.  The self managed properties lost $16,000 in rent arrears in one year? Why? The investor could not be bothered to check his bank statements nor did he review rents or inspect the properties. Needless to say we will be offering to turn the situation around in both cases including chasing the rental arrears. As a property investor myself and owner of Quinovic Property Management Parnell I know there is a better way. Contact us Mary Vinsen or David Vinsen and have your property or properties managed professionally.