Besides choosing the property itself, deciding whether to self-manage or use a property management company is the biggest decision any landlord will make.
Some choose to do it themselves, screening tenants, collecting rent, organising repairs and carrying out inspections. Others prefer a more hands-off approach, enlisting a property manager to take care of the day-to-day responsibilities.
Neither is right or wrong; it’s often decided by your circumstances, the time you have available, and how involved you want to be as a landlord.
From first-time investors to owners with diverse portfolios, Inspire Real Estate supports landlords across New Zealand. If, after reading this article, you’d like to learn more about property management, we welcome you to contact your nearest office.
Property manager vs landlord self-management
Before deciding on the best course of action, it’s worth understanding what you’re signing up for.
If you self-manage your rental, you’re responsible for:
- Advertising the property and finding tenants
- Screening applicants
- Preparing compliant tenancy agreements
- Collecting rent and managing arrears
- Carrying out routine inspections
- Organising maintenance and repairs
- Keeping up with Healthy Homes standards and tenancy legislation
- Managing tenant questions and disputes
A property manager takes care of all of the above, as well as:
- Providing regular reporting and updates
- Managing contractor relationships and maintenance coordination
- Following established systems and processes
- Keeping you compliant with tenancy legislation and Healthy Homes standards, so you avoid the fines that come with getting it wrong
- 24-month rental guarantee
Inspire’s rent guarantee means your income doesn’t pause for vacant weeks, difficult tenants, or anything in between. You get the same payment, on the same date, every month for 24 months.
The real cost isn’t always the fee
People often compare self-management and professional management by looking at fees, but that’s only one part of the equation.
Managing a rental also takes time, which is a resource many of us don’t have enough of. While it varies depending on the property and tenants, self-managing a rental can typically require around 25 to 50 hours per year.
There’s the underlying risk of the investment to consider too. An overlooked maintenance issue or compliance requirement can quickly become far more expensive than the management fee itself. Not to mention the unexpected costs that can result from a poorly chosen tenant. It’s also worth checking with your insurer, as many insurance companies require a professional property manager to be in place for a rental property to remain fully covered.
Most of the time, self-managing is manageable. It’s when something goes wrong, a difficult tenant, an unexpected repair, or a tenancy dispute, that it can take a real toll on your time and peace of mind.
That’s not to say that a landlord needs a property manager; they’re just factors that should be understood by anyone who will be managing a rental property.
A quick self-check
Before making a decision, ask yourself:
- Do I have time to manage tenant enquiries, inspections, and maintenance?
- Am I confident about keeping up with tenancy legislation and Healthy Homes standards?
- Am I willing to deal with rent arrears or a tenancy dispute?
- Would I rather stay involved, or delegate to someone else?
The right choice depends on you
In terms of property manager vs landlord self-management, there isn’t a universal right answer to which is best. Some landlords genuinely enjoy managing their own properties and have the time to do it well. Others would rather pass those responsibilities to someone with the systems, experience, and capacity for the role.
If you’re leaning towards outsourcing your property management, get started by booking a free rental appraisal, or to discuss the best approach for your property, contact our team.
