New service turns property management on its head

New service turns property management on its head

A new business is promising to shake up the property management industry, making property investment easier and more profitable for New Zealanders.

AcQuire Property Ltd has launched its Residential Management division, a full property management service that takes the hassle out of monitoring rental payments – at a price that every landlord can afford in even the toughest economic times.

Unlike other property management services, which charge a commission of around 8% of rent plus GST, Residential Management is charging a flat fee of just $899 a year, including GST. Even on a basic one-bedroom property renting at $350 a week, that’s a saving of almost $750 a year for the landlord.

That saving means a higher yield for landlords using existing property management services. And it makes professional property management more affordable – and being a landlord much less of a hassle – for those who have been managing their own properties.

“As people are beginning to feel the pinch, we have seen more tenants missing rental payments and even fleeing properties, owing thousands of dollars,” says AcQuire Property Ltd principal Ritesh Mani.

“Many smaller landlords who are managing their own properties simply don’t have the time or expertise to handle these situations, and so end up hugely out of pocket.

“Residential Management checks rental payments daily – if a payment is missed, we will ring the tenant that day. If it still hasn’t been paid the day after that, we will send them a letter. And if it remains unpaid, we’ll start Tenancy Tribunal proceedings.

“How many small landlords check their rental payments every day – or feel able to act as soon as a payment is missed? Having been in the property business for several years, the team working with Ritesh Mani have the expertise to deal with these situations, and can save landlords thousands of dollars by ensuring they get the rent they are owed.”

The flat fee structure has been tested in London, where Residential Management London built up a portfolio of 2,000 properties in less than a year.

“New Zealand has a very high level of residential property investment,“ says Mani. “Often people buy an investment property to secure their financial future, and then spend all their free time acting as landlord because they can’t afford a professional property manager.”

During a down-turn in the market, a flat-rate property management service could be the difference between some investors keeping all their properties or having to sell down into a depressed market, says Mani.

“An investor with three properties renting at $350 a week will save $2200 a year – that’s boosting their yield, and it’s money that could be going straight into mortgage repayments.”

Importantly for investors, AcQuire Property Ltd is accredited by the Real Estate Institute of New Zealand, and all rent goes directly into an audited trust fund. “Even if disaster befell our company, there is absolutely no risk of investors losing their rent as they have done in high-profile company collapses such as Blue Chip,” says Mani.

“This model not only saves investors money, but it also gives them peace of mind.”

AcQuire Property Ltd is launching Residential Management into the Auckland rental market, having bought the client list and database of Vault Property Management Ltd.

As it grows, it will expand into other markets through a franchise model, says Mani.

Mani, who has worked in property and investment for seven years, says the flat-fee model is definitely viable for property management.

“We have worked in property and investment for seven years,” says Mani. “We know the service that landlords want, and we know how to provide it to them in a cost-effective manner that enhances the value of their investment.

“We fully intend to turn New Zealand’s property management model on its head while providing a service that is second to none.”

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