With ever-increasing costs, Landlords often wonder if they’re doing the right thing using a Property Manager, and it’s a topic that’s discussed a lot on PropertyTalk. Why pay for the service when they could do it and save hundreds of dollars every year per property? Well one reason to not do it yourself is all the rules and legislation. The use of property management firms is increasing due to the complexity of owning rental properties today.
Ministry of Business, Innovation and Employment (MBIE) recently published an article on the responsibilities of Landlords. It’s a reminder to rental property owners that they’re running a business and like all businesses there’s rules and regulations to adhere to. Failure to comply with the rules may result in hefty fines.
Landlords can be fined up to $4000 for failure to comply with the Residential Tenancies Amendment Act 2016.
- smoke alarms are now compulsory in your rental home and you must fit the right type in the right places
- all your new tenancy agreements must now include an insulation statement disclosing if there is insulation, where, what type and its condition – you must make all reasonable efforts to provide this information so tenants know what to expect
- you will need ceiling and underfloor insulation, where reasonably practicable, by July 2019, though some exclusions could apply.
A spokesperson for this Auckland property management firm says their Landlord clients now rely on them to inform, and manage the process of compliance of many of the rules, particularly new legislation like the Residential Tenancies Amendment Act. This value-add service is now a fundamental part of our business.
Landlords are now less likely to go it alone as soon as they get a taste of what’s required of them. Owning rental properties is not a passive investment, therefore most Landlords today prefer to use a property manager.