Residential Tenancies - Does the 80:20 Rule Apply?

[Perry]

I.e. With tenants or LLs, are they 80% good and 20% bad?

Or do you think the ratio is quite different?

[Bobsyouruncle]

Don't understand this. Which is landlords and which is tenants? Is 90/10 90% good tenants and 10% bad landlords?

[Perry]

My best guess, based on experience, is that 90% of tenants are good. Possibly even a bit higher than that. I suspect that the same ratio would apply to LLs, too. But it may depend on which socio-economic group / zone one's portfolio is based in.

I've amended the poll to remove (I hope) any ambiguity.

[Keys]

I would say 98% of tenants are good.

I would also like to remind readers that over 90% of TT applications are made by landlords.

[Rentex]

Agree with Keys.

[ParnellPro]

Most private landlords may struggle to make a Tenancy Tribunal application

[Peter Griffin]

Most private landlords may struggle to make a Tenancy Tribunal application

What evidence do you have to support that? I'm a private Landlord and have made several applications to the TT. What I struggled with was the outcome, I've lost more times then I've won.

[Bobsyouruncle]

Agree Peter, a strange comment. It's not like it's hard. If you can't make an application you have no business being a landlord.

[Keys]

I find it a total pain in the ass. It takes me about 30 minutes to gather the data into one, easily accable, folder and complete the process. And that's with my browser prompting me for my saved data. One of my processess is to log onto a seperate site (two tier log on system) to retrieve my real me username and password.

[ParnellPro]

What evidence do you have to support that? I'm a private Landlord and have made several applications to the TT. What I struggled with was the outcome, I've lost more times then I've won.

Been involved in the industry for many years now. You hear your horror stories and many private landlords don't have the same awareness that property management companies do. Therefore the private landlords are a target by those prepared to rip-off. How many private landlords are able to do credit checks for example??

[Don't believe the Hype]

Been involved in the industry for many years now. You hear your horror stories and many private landlords don't have the same awareness that property management companies do. Therefore the private landlords are a target by those prepared to rip-off. How many private landlords are able to do credit checks for example??

they're all able to do credit checks... They choose not to... I for one have no idea why you would do your own property management... The 'savings' of a small % of the rent is almost always lost in the hours required to do the job, or lost rent due to vacancy, under renting, rent default... In fact a good PM should make you money not be a cost.

The PM game is one of scale... No money to be made on the first one (could be up to probably 30-40) properties managed depending on weekly rents in the location you work... Once you have the scale to cover costs, hourly rate you then start to see profitability in PMing - many PM's work off 100+ properties/PM.

Quite frankly I would rather employ a PM to free up my time to earn $$ to add to my investment pool than save a few bucks being my own PM.

[Peter Griffin]

Parnell Pro, I think you're extremely out of touch. Credit checks are not hard. I think you'll find that Managers can get 'ripped off' as well. Managing too many properties, hiring inexperienced staff and not training them adequately can result in managers who are easily manipulated. I have had first hand experience with incompetent and over worked managers in Glenfield, Birkdale, Milford and Papakura over the years. I've had to be compensated by one company $3,000 after they let a tenant leave after a very poor Final Inspection. If you can go along to an APIA meeting, I think you'd be surprised at how sophisticated and informed private landlords are, who take a professional approach to investment property.

P.G

[Perry]

In fact a good PM should make you money not be a cost.

And therein lies the oft-mentioned-on-PT problem:

The serious under-supply of good PMs;

Plus - how to identify them.

[Nick G]

And therein lies the oft-mentioned-on-PT problem:

The serious under-supply of good PMs;

Plus - how to identify them.

It has nothing to do of course with people wanting the cheapest service available.

[Don't believe the Hype]

And therein lies the oft-mentioned-on-PT problem:

The serious under-supply of good PMs;

Plus - how to identify them.

i pay nearly 10% to my PM and he's had a number of new phones as on top gifts from us for his great work... I could negotiate a discount - probably 2-3% but the saving won't actually be a saving...

Perry - You're right... They're hard to find... Had my share of shockers too... But when you find the good ones hang on to them with both hands.