When buying an investment property, there are many things you must consider as a landlord. Being a landlord is not just about buying a property and renting it out, it means understanding the legal responsibilities and rights of both yourself and your future tenants.
It is recommended that you use a qualified property manager or agent to look after your rental property, as they take a lot of the responsibilities out of your hands. They would be familiar with the provisions of the Residential Tenancies Act 1995 and would be responsible for arranging inspections and reports, advertising the property for lease, selecting the tenant (with your approval), chasing rental arrears and dealing with any complaints.
A management agency agreement should be negotiated and signed by yourself and the property manager or agent prior to renting out the property. This agreement would set out all the commissions, charges, fees and other services to be provided by the agent.
The property manager or agent will carry out inspections on the property but the landlord is responsible for the repairs and maintenance and ultimately ensuring the property is safe. Your management agency agreement will outline to what extent the tenants or agent can arrange for repairs.
If you decide to manage the property and tenants yourself, there are several rules and processes under the Residential Tenancies Act 1995 that you must follow. There can be a lot of time involved in dealing with tenants and organising repairs and you will have to handle any complaints yourself.
Other things to think about if you are planning to buy an investment property are capital gains tax, GST, insurance, land tax, security and maintenance on the property. Your local property manager or real estate agent is a good source of advice for all of these important issues.