Owning property is possibly the biggest investment you will make, but the property ladder can be tricky to climb. It’s wonderful when all goes well, tenants take care of your mortgage and eventually the passive income begins to flow in like clockwork. Unfortunately, the opposite can be just as likely.

A property manager should make life simple for you by ensuring your properties are occupied, maintained, and looked after. But with so many choices available, how do you pick the right one? To help get you started here are four tips on how to choose a property manager: 

Personable and professional

You don’t need to be friends, but as they will be looking after your investment it’s important you trust them and relate with them. A good property manager should be easy to deal with, involve you as much or as little with decisions as you want, and take care of you and your tenants.

You need more than a nice person though. Are they members of Leading Property Managers of New Zealand (LPMNZ), the Independent Property Managers Association (IPMA), are they landlords themselves, and why are they property managers? A personable and professional connection will help you choose a good property manager.

Finding and choosing tenants

What kind of screening process do they have in place for tenants? At the very least a property manager should be checking references, criminal history and making sure they’re legitimate. A good one will also research the Tenancy Tribunal history, credit history and their background so you can both be sure about who’s getting the keys to your retirement savings.

Read more: 4 ways a property manager can help you find the best tenant

Additional services and value

Not all property management companies are equal. Some offer more services than others, which might also influence their monthly fees. Sit down with them and be clear about what you want, while also understanding what they expect from you.

• How will you ensure my properties are managed over holiday periods?
• Can I see an example of a reporting package?
• What kind of inspections do you provide during and in-between tenancies?
• On average, how long does it take to fill a vacancy?
• What kind of insurance cover do you have, and is there fidelity fund coverage?
• Are they up to date with the latest legislation changes?
• Are they local? There’s something to be said for property managers that pass by your investment regularly - not just when an inspection is due.

It’s better to be upfront now than have a difference of opinion down the track when there’s time, money and stress on the line.

Customer service

What’s your initial impression? How friendly are they over the phone? Do they answer your questions quickly, and how long does it take for them to return a message?

Everyone is busy, but a property manager that takes two days to reply to an email or return a call is going to miss opportunities to place tenants in your rental. It’s also unlikely tenants will be able to reach them if repairs and tradespeople are needed?

A good property manager understands the challenges of owning investment property. They should choose quality tradespeople to undertake repairs and maintenance, communicate quotes, conduct thorough inspections and background checks (with photos if necessary), be willing to chase rental arrears, even if it means holding tenants accountable in front of the Tenancy Tribunal. The right property manager will help you relax about your properties, giving you rental peace of mind.

Download our A-Z guide is a handy guide to help you navigate the property investment world, and make buying, leasing, and selling homes that much easier: