9 December, 2015 / Category: Blog
Entrusting your investment property in the hands of another is a necessary part of the process. A good property manager has the ability to provide a legitimate peace of mind to their clients via their extensive experience and in-depth knowledge of the marketplace. Conversely, signing with a second-rate property manager can result in poor decisions being made, a reduced return on your investment, and more. So how do we determine whether our property manager is a hero or a zero? There are a few tell-tale signs to look out for which should act as catalysts to your escape, including:
1. They talk the talk, but don’t walk the walk
They promised you the moon and couldn’t even deliver a star. While we all know that no property manager will dedicate themselves 100% to our property, it should be expected that whatever it is that was assured in the beginning should be delivered upon. Whether that’s a guarantee of maximum vacancy time, market rent review or anything else, empty promises are not on.
This issue may be a result of having a ridiculous number of properties in their portfolio, which is another important point to consider – the more they have, the less time they can focus on yours.
2. Rental figures remain stagnant for excessive periods
To be fair, this may well be as a result of difficult market conditions. The best thing to do in order to ascertain whether this is the cause is to do some research concerning the area and its current vacancy rate. If it’s sitting at around 3% or lower, it can be said that the blame rests on the property manager for not re-assessing the price. Of course, if a lease agreement has been signed and no clause exists that stipulates the possibility of rental increases, then nothing can be done until the end of the fixed term. A quality property manager will negotiate well and work hard to achieve the best price for you, while a not-so-good one will push lower figures so it’s tenanted quickly (making them appear skilled). Find someone who knows your area back to front, and can discuss market trends about the suburb easily and methodically.
3. There’s a total lack of communication
It’s important to keep you up to date, whether regarding the latest market figures, inspections and more. It is also just as important to maintain communication with the tenants, too – a successful property manager knows that good relationships are the key to positive outcomes, referring to both the owner(s) and tenant(s). When communication is neglected, relationships are affected and disputes are more prevalent.
4. You’re stung with questionably high repair costs
Maintenance of your property is something that will most likely come up eventually. When the time comes to get repairs done, it’s a good idea to have a property manager who has good working relationships to industry professionals as this will reduce your maintenance costs to a minimum. A poor approach by a sub-par manager may end up costing you substantially more in comparison.
While there are of course more indicators to uncover a bad property manager, the above should make for a good start.
Find out more information here.