What does a property manager do for Dunedin landlords?

If you've never used a property manager before, you might wonder what they actually do. Collect the rent? Carry out an inspection every few months? Call a plumber when something breaks? Those are all part of the job, but they're only a small part of managing a tenancy from beginning to end.

A property manager takes responsibility for the day-to-day management of a rental property on behalf of the owner. For Dunedin landlords, that means having someone oversee everything from finding tenants and collecting rent, to inspections, maintenance, and tenancy requirements while dealing with issues that arise along the way. For many property owners, the real value isn't any one of those individual tasks. It's having someone else responsible for making sure they all happen when they need to.

Let's take a deeper look at what a property manager does throughout a typical tenancy.

Advertising the property and finding tenants

When a property becomes available, a property manager assesses the current market rent, prepares the advertising, responds to enquiries, and arranges and attends viewings. Depending on the property and the market, this can mean dealing with a large number of prospective tenants within a relatively short period.

Screening and selecting tenants

Once applications are received, a property manager assesses and screens prospective tenants before making a recommendation to the owner. Screening can include checking current and previous landlord references, employment or income information, credit history and other relevant background information.

Some property managers go further. South Property's tenant-selection process, for example, includes landlord, employer and personal references, verification of landlord information, and multi-bureau background checks.

Good tenant selection isn't simply about finding someone who can move in quickly. It's about finding the right fit for the property. Someone whose needs align with what the home offers, who will look after the property and meet their responsibilities throughout the tenancy.

Preparing the tenancy

Between choosing a tenant and handing over the keys, there’s still some preparation to do. This includes arranging the bond, coordinating any minor repairs, maintenance or touch-ups that need to be completed before the tenant moves in.

The condition of the property is then documented in a Property Condition Report so there is a clear record of how it was presented at the beginning of the tenancy. This becomes particularly important if there is a disagreement about cleaning or damage when the tenancy ends, as photographs and condition records can help establish what has changed.

Collecting rent and managing arrears

Collecting rent is one of the most obvious parts of property management, but receiving the money is only part of the job. Rent is monitored so missed or incomplete payments are identified quickly. If a tenant falls behind, the property manager follows up and manages the appropriate process if the arrears aren't resolved. At South Property, for example, rent is monitored daily.     

A property manager will review the rent periodically and advise the owner on where the property sits within the current market. That doesn't automatically mean increasing it. Comparable properties, market conditions and the existing tenancy can all form part of the decision.

Carrying out routine inspections

Routine inspections are an opportunity to see how the property is being cared for. A useful inspection gives the owner a clear picture of what's happening at the property, identifies any maintenance required and builds an ongoing record of the property's condition throughout the tenancy.

The frequency and level of detail can vary between property managers. At South Property, routine inspections are carried out quarterly and owners receive a report with photographs, notes on how the property is being cared for, maintenance identified and any action taken or requested.

Coordinating repairs and maintenance

When a tenant reports a maintenance issue, the property manager becomes the point of contact between the tenant, owner and tradespeople. They coordinate the necessary repairs, including arranging tradespeople, organising access, obtaining quotes where required and ensuring the work is completed.

Management agreements will generally set out how much authority the property manager has to approve routine repairs. Owners can also choose how involved they want to be, from having the manager coordinate most maintenance to using their own tradespeople or carrying out the maintenance work themselves.

Some property managers also offer project management for larger improvements or renovations, such as a kitchen upgrade, bathroom renovation or full exterior repaint. For Dunedin rental properties, this can be particularly valuable when an owner lives out of town and isn’t available to oversee the work themselves.

Managing compliance and tenancy requirements

A rental property comes with legal and compliance responsibilities, and part of a property manager's role is making sure the correct processes are followed. That can include tenancy agreements, bonds, notices, rent increases, inspections and access, maintenance, Healthy Homes requirements, smoke alarms and record keeping.

Tenancy requirements also change over time, so keeping up with those changes is part of managing a rental. When a situation becomes more complicated, a property manager should also recognise when specialist legal or other professional advice is required.

Communicating with tenants and resolving issues

The property manager is generally the tenant's main point of contact. They receive maintenance requests, respond to questions, arrange access and inspections, and handle more difficult conversations such as overdue rent or issues identified during an inspection.

Many issues can be resolved through good communication. If they can't, a property manager can manage the next steps, which may involve formal notices, mediation or the Tenancy Tribunal depending on the circumstances.

Managing statements, payments and tenancy records

There's also administration behind a managed tenancy. Rent, invoices, maintenance expenses, fees and payments to the owner need to be recorded accurately, with owners generally receiving regular statements showing the income and expenses associated with their property.

The tenancy also generates agreements, inspection reports, notices, correspondence and maintenance records that need to be kept. These records can become particularly important if evidence is required later. At South Property, owners also receive monthly statements and annual statements for financial reporting.

Managing the end of a tenancy

When a tenant leaves, a final inspection is carried out and the property's condition is compared with the record from the beginning of the tenancy. Any outstanding maintenance, cleaning, damage or other issues need to be dealt with and the bond resolved.

If the property is being rented again, the rent may also need to be reviewed, advertising prepared, viewings arranged and applications processed. The aim is to minimise unnecessary vacancy without rushing the tenant-selection process simply to get someone into the property.

So, what are you actually paying a property manager for?

When considering property management fees, it's important to understand that you're paying for more than rent collection. Property management covers the day-to-day work, problem solving and relationships that come with managing a tenancy. While much of that work happens behind the scenes, its value can become particularly apparent when something unexpected happens. 

A fixed-term tenant who suddenly needs to move out, for example, can mean navigating the correct process, reaching an agreement, advertising the property, screening replacement tenants and coordinating the changeover. Other situations might involve rent arrears, significant maintenance, property damage, insurance claims or disputes requiring mediation or the Tenancy Tribunal.

These situations can be time-consuming, stressful and potentially costly if not handled correctly. An experienced property manager understands the processes, knows how to manage difficult conversations and can take the necessary steps to protect the owner's interests.

Ultimately, you're not paying a property manager because managing a rental is difficult every day. You're paying someone else to take responsibility for managing it every day, including when things don't go to plan.

Does using a property manager mean giving up control?

Using a property manager doesn't mean handing over every decision about your investment. The owner still makes the important decisions, with the management agreement setting out what the property manager is authorised to handle on their behalf.

Some owners prefer to remain closely involved in tenant selection, maintenance expenses and improvements, while others are happy to leave most day-to-day decisions to their property manager. The important thing is establishing those expectations from the beginning, so you have the level of involvement that works for you.

Do you need a property manager?

Not necessarily. Plenty of landlords successfully manage their own rental properties. If you have the knowledge, time and systems to manage a tenancy well, self-management can work perfectly well. The decision is often less about whether you're capable of doing the individual tasks and more about whether you want responsibility for making sure they all get done when they need to. We've looked at that question separately in our guide, Should I manage my rental property or use a property manager?

If you decide you'd rather hand the day-to-day responsibility to someone else, that's where professional property management can become worthwhile.

South Property is an independent, locally owned company providing property management in Dunedin, Mosgiel and East Otago. We've been working with local landlords for more than 15 years.

If you'd like to understand how our property management service works, get in touch for a confidential chat or request a free, no-obligation rental appraisal.