Investing in rental property

Owning a rental property used to be something only highly affluent people did. These days, owning property to rent is more commonplace, and as the demographics of our country shift, the demand for rental property remains strong.

As a result, I've found that investing in rental property is an increasingly popular way to save for retirement in New Zealand. Property investment can provide a steady income stream and financial security for years to come.

I believe rental properties are relatively low-risk investments, and a well-managed rental property can provide a steady stream of income and potential capital gain. This income can supplement my retirement savings, helping me save more for retirement. A rental property can also help hedge against inflation, as rents tend to increase over time. By using the rental income to cover the cost of the mortgage payment, I ensure that my retirement savings are maintained.

Additionally, rental properties can be leveraged to purchase additional properties, allowing me to build a more extensive portfolio of rental properties over time. This can be a great way to diversify my investment portfolio and ensure a steady income in retirement.

As a landlord, I can claim expenses against my income, such as mortgage interest payments, insurance, repairs and maintenance, and other costs associated with being a landlord.

Using a Property Manager

Why would I use a property manager for my rental investment?

As a rental property investor, having a reliable property manager to take care of my property is one of the best investments I can make. The benefits are more than just financial; many other parts of property management can be arduous for landlords.


Running a rental relationship involves much more than selecting a tenant and collecting rent. It is a business, and having a buffer between myself and my customers prevents me from feeling compromised by having a personal relationship with tenants. Keeping the tenancy professional will reap financial rewards and reduce the need for dealing with conflicts. Being confident that my Property Manager has it all under control is priceless.


Property maintenance can take up a lot of time, and when something isn’t working or needs repairing, tenants want it fixed asap. Sourcing quotes from tradespeople and managing access and performance can be quite arduous, especially if my property isn’t close to home. Property Managers have a roster of great suppliers for my property’s needs and likely have preferential relationships with their network of providers. This means they will get an excellent price for any work and are more likely to be prioritized in expedience. And I can sleep well knowing my phone won’t be ringing at midnight because the tenant’s toilet is blocked.


As well as a great network of suppliers, my Property Manager will have a wealth of knowledge about my legal requirements and obligations as a landlord. This can save me time and money!

This is crucial when I am looking for new tenants. Property Managers deal with people all day, every day and provide significant insights when it comes to choosing the right tenant for my investment. They have tools that allow comprehensive background and credit checks and have a strong understanding of the Residential Tenancy Act (RTA). Investors not up to date with the changing law can end up in complex (and expensive) situations. They can advise me about Healthy Homes Certificates and know what to look for when doing regular inspections, quickly identifying any potential red flags!


Property Managers come at a cost, but the benefits they provide often mean they pay for themselves quickly. From understanding market rates for rent, managing rent increases effectively, and preventing me from being lumbered with damage and unpaid rent. If my property is out of town, they can save me the time and cost of travel, and I can benefit from savings from their suppliers whom they use regularly.


Experience counts for everything. My rental property may be an old family home with emotional ties, or I may find that particular tenants don’t live the way I do. Property Managers understand that my investment is crucial to me, but the tenant has the right to live without a landlord constantly looking over their shoulders. A Property Manager will know what is legal and fair in terms of access and assessment of the house’s condition and will build a relationship based on trust and respect, allowing me to enjoy the financial gains with my feet up.

Find out more about Classic Property Management now available in Auckland, Bay of Plenty and Waikato HERE.