Why I Bought Four NZ Rental Properties, Not Two

I bought four rental properties over time. People sometimes ask why four, rather than two. This is the story of my own decisions, not a recommended portfolio size or a promise that a particular number of rentals will provide financial security.

I started with the question of what I could afford to own and maintain. I considered rent alongside mortgage costs, rates, insurance, body corporate charges where relevant, repairs and periods without rent. Those estimates depended on the property and the assumptions I used. They were not a guarantee of future income or growth.

Why more than one property appealed to me

With one rental, a vacancy means no rent from that property while many costs continue. With several rentals, income from another occupied property may continue, but that does not remove the risk. Properties can be vacant at the same time, rents or values can fall, borrowing costs can rise, and repairs or body corporate costs can be substantial.

My own experience of vacancy is only an example from a small group of Auckland apartments. It cannot predict another landlord's vacancy rate, tenant demand or returns. Location, property condition, rent, timing and many other factors matter. A comparison should use your own tenancy and cost history, not assume that self-management or professional management produces a particular vacancy outcome.

Cash flow is more than weekly rent

For each property, I looked at expected rent and recurring costs, then allowed for irregular expenses and the possibility of no rent for a time. Gross rent is not take-home income. Debt repayments, tax, maintenance, insurance, rates, body corporate charges and other costs all affect the result. Changes to any of those assumptions can change the decision.

I also considered whether I could handle the work involved. Self-management takes time and may require local attendance, communication with tenants, arranging repairs and keeping records. Software can help organise administration, but it does not do physical inspections, attend emergencies or take over the landlord's responsibilities. A property manager may be a better fit for an owner who wants those services or cannot provide them personally.

Why I chose to self-manage

I wanted to stay involved with the properties and understand their records. I had previously used property managers for some of them, and I decided to take on more of the administration myself. That choice suited my circumstances and appetite for the work. It will not suit everyone, and the time required varies with the property, tenancy and events during the year.

When comparing self-management with a manager, use the actual written fee schedule and service agreement. Include GST, letting and renewal charges, inspections, advertising, maintenance charges and exit terms where they apply. Compare that scope with the work you would personally do or arrange. A fee alone does not show the value or quality of a service.

RentManager helps landlords organise tenancy administration, records and recurring tasks. It is software, not a property management service. See current plans and prices, and use the cost comparison with your own assumptions. The result is an estimate, not a forecast or financial advice.

What I would tell another investor

There is no universal number of properties at which investing, diversification or self-management becomes right. Check that the finances work under more than one scenario, understand the responsibilities, and decide how much time and local help you can commit. Consider independent financial, tax and legal advice for your circumstances.

I chose four because that was the portfolio I built. The useful lesson is to make the decision with your own costs, risks and capacity in view, rather than treating my experience as a rule.