Owning a rental property was once a privilege reserved for the affluent. However, in today’s shifting demographics, the demand for rental properties remains strong, making property investment an increasingly popular choice for saving for retirement in New Zealand. Investing in rental property provides a steady income stream and offers long-term financial security.
Rental properties are considered relatively low-risk investments, and with proper management, they can yield a consistent income and potential capital gains. This additional income can supplement your retirement savings, allowing you to build a more substantial nest egg. Moreover, rental properties hedge against inflation since rental rates increase over time. By using rental income to cover mortgage payments, you can ensure that your retirement savings remain intact.
Another advantage of investing in rental properties is leveraging your existing properties to acquire additional ones. This strategy allows you to expand your portfolio and diversify your investments, providing a stable income during retirement.
Managing a rental property, however, can take time and effort. That’s why enlisting the services of a reliable property manager is one of the best investments you can make as a rental property investor. The benefits extend beyond financial gains, as property management encompasses various aspects that can be burdensome for landlords.
Renting out a property involves more than selecting tenants and collecting rent. It is a business; maintaining a professional relationship with tenants is essential to avoid personal conflicts. Entrusting a property manager to handle these responsibilities ensures a smooth and professional tenancy, resulting in financial rewards and reduced friction.
Property maintenance can be time-consuming, especially when repairs or fixes are required. Coordinating with tradespeople, obtaining quotes, and managing access to the property can be arduous, particularly if your property is not nearby. Property managers have established networks of reliable suppliers and tradespeople, ensuring prompt service at competitive prices. With a property manager, you can rest assured that your phone won’t be ringing at midnight due to a blocked toilet.
Property managers possess extensive knowledge about legal requirements and obligations for landlords. This expertise saves you time and money as they guide you through tenant selection, background and credit checks, and the Residential Tenancy Act (RTA) compliance. They can also advise you on obtaining Healthy Homes Certificates and conducting regular inspections to identify potential issues early on.
While property managers come at a cost, their benefits often outweigh the expense. They deeply understand market rental rates, effectively manage rent increases, and protect you from unpaid rent and property damages. If your property is far from your residence, a property manager can save you the time and costs associated with travel. Additionally, their established relationships with suppliers result in cost savings for maintenance and repairs.
Experience is invaluable in the rental property market. Property managers understand your investment’s significance but also respect tenants’ rights to live without constant interference. They ensure legal and fair access to the property and handle assessments with trust and respect. By building a solid relationship with tenants, property managers allow you to enjoy the financial gains while enjoying peace of mind.
Investing in rental property can be a lucrative and rewarding venture, especially when coupled with the expertise and support of a reliable property manager. Classic Property is committed to helping you navigate the rental property market and achieve your retirement goals. Our knowledge, experience, and network of trusted professionals ensure that your investment is in good hands.
Please note that while this article provides valuable insights, seeking independent financial advice tailored to your specific circumstances is essential.
The Classic Group has 26 years’ experience in the property sector and includes Classic Developments (a land development company) and Classic Builders (one of New Zealand’s largest residential builders).
Its projects include a joint venture partnership with Western Bay of Plenty District Council to deliver affordable housing in Omokoroa, a 13.8 hectare joint venture project in Papamoa, 120 hectares of future development in Tauriko, a 72 lot subdivision in Queenstown, Edgewater Apartments in Hobsonville, 650 lot subdivision at Ramarama (Hunua Views) in Auckland, as well as having worked with Kainga Ora on KiwiBuild developments in Tauranga and Christchurch.
All up, Classic currently has a land bank of approximately 3000 sections .Kaha Ake anticipates making announcements on future development opportunities in due course.
Find out more about Classic Property Management, now available in Auckland, the Bay of Plenty and Waikato, HERE.