New Zealand landlords are becoming more likely to leave their property management in the hands of the professionals, one industry participant says.
By Susan Edmunds
David Faulkner, of Property Brokers, said a comparison of listing websites TradeMe and Realestate.co.nz showed that up to half of all rental properties were now being looked after by a manager, rather than a DIY owner.
It had traditionally been reported that only about a third were under management.
Faulkner said the shift was partly because there were now so many more property management firms operating, many of whom were doing it to a higher standard, and partly because of a generational shift.
The deregulation of property management meant that it was not hard to open an office, he said. Anecdotally, he had heard that where there were once eight property management firms in Hamilton, there were now 40.
But he said many offices were putting a lot more emphasis on doing rental management well. Sales teams had realised during the downturn that it was part of the market that should not be ignored.
“There’s a lot more competition out there,” he said.
In bigger centres, that was forcing management costs down to 6% or 7%, he said. Regional offices were still charging up to 10%.
The aging population was also leading to more management, he said.
Baby boomers who were less likely to use a property manager were opting to sell their properties, or passing them on to their children. “They’re passing them to my generation, generation x. I’m a landlord and manager of a property management business but I still get my property managed because I’m too busy.”
He said the younger generation was more likely to get someone else to do it and was more demanding in what they expected from their manager. “We have to ensure we’re at the top of our game.”