Property Management
4 min read
When you buy a property through Opes, around 80-90% of investors will use Opes Property Management to rent their properties.
So if you’re investing in a property that’s in a block of 20 townhouses, you might wonder: “If we all use the same property manager does that mean it’ll take longer for my property to rent?”
Or worse: “Will my property miss out?”
It’s a fair question and one I often hear.
So, in this article you’ll learn the benefits and drawbacks of having the same manager as your neighbours.
But before we start you really should know that I work for Opes Property Management.
That means I have an incentive to tell you our property management is great and that you should absolutely use us.
I’m not going to do that. My promise to you is that this will be an unbiased look at how property management works in large New Build developments. That way you can make the right decision for you.
Using the same property manager in a large development can help properties rent faster through coordinated marketing and shared tenant demand.
In big New Build developments there can be a challenge right at the start.
A bunch of townhouses might settle in the same week. That means there’s a big rush of investors who all list their properties at the same time, and some properties will find tenants before others.
So some investors think: “If everyone uses the same property manager, then that company’s attention is split. But if I use a different property manager from everyone else, then that company is only focused on my unit. So maybe it’ll rent faster.”
It feels logical. If you separate yourself from the crowd you can get ahead. But in practice? This strategy has pros and cons you need to know about.
Let’s start with the downsides of all these landlords using the same property manager.
Let’s start with the downsides of all these landlords using the same property manager.
#1 – A single point of failure
When one company manages most (or all) of the development, you’re putting a lot of trust in a single team.
If they do a great job, everyone benefits.
But if they drop the ball, every owner feels it.
What happens if the property managers in one company all have bad communication? All potential tenants notice it.
When landlords use different property managers, if one company is substandard it only impacts a handful of owners.
That doesn’t mean you shouldn’t use the same property managers, but it does mean you want to be confident in the company’s systems, staffing and stability.
#2 – Less competition to get your unit rented
When most owners choose the same property manager, there’s less competitive tension.
This can be a good or a bad thing (see more below).
Competition can keep standards high. If different landlords choose different companies, they’re all competing to get the first tenant.
If most owners choose just one company, that competitive pressure softens.
When multiple investors in the same development use the same property management company, that can have benefits too:
#1 – The properties piggyback off each other
When you’re all looked after by one property manager, you become part of a coordinated marketing strategy.
So, instead of every owner fighting for the same tenants … often one team looks to get tenants for every property.
For instance, one listing on Trade Me might get interest from 20 tenants, but only one tenant can rent that property.
If you use one team, the 19 other potential tenants can be shown the other properties in the development.
That doesn’t happen if every unit uses a different property manager because each manager only has access to one unit.
On top of that your manager can run group viewings, showing 10-20 units at once.
This matters because:
#2 – Tenants have more consistency
With one property management company all tenants across the development deal with a single office.
That tends to make it easier for the property manager to be across all issues, and communication is a lot clearer.
This reduces confusion, complaints, and more stable tenancies for owners.
#3 – It helps prevent and resolve tenant disputes
Legally, landlords must take reasonable steps to ensure tenants don’t interfere with each other’s peace or privacy.
One manager looking after multiple properties can mediate issues pretty quickly. If five different managers are involved, issues often get stuck in back-and-forth delays.
A single manager acts as a neutral third party and issues breach notices to tenants if necessary.
#4 – Owners have more coordinated marketing
It’s hard for one property manager to spend money on marketing a unit, but if one property management company manages the bulk of units they might stage a unit with furniture.
All units then get the benefit of having photos with furniture in them.
You also get a more coordinated way of promoting and pricing. For instance, if tenants give feedback about the level the rent is set at … then all owners can get that information at the same time.
In my experience you’ll often rent faster if you and other owners use the same company.
That’s because you’re not fighting your neighbours, you’re working with them (even if unintentionally). That way you get coordinated management, marketing, and tenant placement.
Business Development Manager with 5 years Property Management industry experience. Property Investor in Christchurch
Tom Greene is the Business Development Manager at Opes Property Management in Christchurch with over five years of industry experience and is also an experienced property investor. Tom provides tenancy guidance and insight to those both starting and continuing their investment journey.
This article is for your general information. It’s not financial advice. See here for details about our Financial Advice Provider Disclosure. So Opes isn’t telling you what to do with your own money.
We’ve made every effort to make sure the information is accurate. But we occasionally get the odd fact wrong. Make sure you do your own research or talk to a financial adviser before making any investment decisions.
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