While property owner-managed rental properties are still the majority, the tide has turned so to speak and engaging Property Management companies is now the norm in many areas around the country particularly in the main city centres.
Property management has matured over the past ten years. The rising population and high cost of homes has created a much larger rental market. Property investors have grown to trust the services offered by property management companies and this trend is set to continue.
“72% of New Zealand’s rental properties are being self-managed by the owners. Only 28% of rental properties are professionally managed using a Home Rental Management Company.”
In 2011 another property management company reported 80 % of rental properties were self managed; therefore it’s fair to say in 3 years there has been a steady shift towards outsourcing property management to third parties.
Stake Property Rentals say there are major contributing factors for the move to professional property management:
- Larger pool of prospective tenants
- More Bond
- Higher Rents
- Professional Property Inspections
Engaging a property management company does come at a cost however the cost-benefit ratio is clearly in favour of outsourcing the job therefore expect the trend to professional property management to continue to grow.
Written by Mobilize Mail for Stake Property Rentals