10 Questions to ask your Property Manager

The decision to establish a property portfolio is a major consideration whether you are an experienced or first-time investor. To entrust the safekeeping of your asset portfolio to a property manager is a key decision that can influence and/or affect that objective.

1. Is there a dedicated Property Manager looking after your property? Agencies notoriously experience high turnover rates in their property management departments. Most landlords don’t know who is managing their property from one day to the next. It is critical to have one dedicated manager to ensure continuity of service and a ‘stable’ business partnership.

2. Is your Property Manager committed to property management as a career path? Stability is the key word to consider in choosing your property manager. You want to pick up the phone and talk to your property manager today, and, 12 months down the track. Someone you know and who knows your property inside and out.

3. Who holds the chain of responsibility? Who conducts the open homes, the routine and entry /exit inspections? Many agents do not conduct robust entry inspections leaving owners in a precarious situation should their property be damaged. It is vital that you are given full and comprehensive reports after each and every inspection. Many agencies outsource their inspections and have never even seen your property.

4. Does your Property Manager invite you to attend one of the routine inspections? Do they call you after every routine inspection to report in person as well as in writing? Transparency should be an integral part of the service you receive providing reassurance and dedication to their duty of care.

5. What hours does your Property Manager work? The most common complaint is that property managers are never available when issues arise or rarely answer their phone. It is critical that you have full access to your property manager with all enquiries handled promptly and professionally; including responding outside business hours if required.

6. Does your property manager attend tenant inspections? Or do they just hand out the keys? Security of your property is fundamental. Your property manager should attend all inspections with prospective tenants. If your property manager just hands out the keys, this is indicative of how they will manage your property with little if any care or attention.

7. Do you screen potential tenants? Selection of top quality tenants should always be a priority. Prospective tenants should be assessed on but not limited to credit worthiness, rental history and current employment.

8. How many properties are managed by your Property Manager? Too many properties allocated to one property manager will result in the quality of service being seriously compromised

9. Does your Property Manager maximise your returns? Rates should be assessed on a regular basis to ensure returns are maximised and revised if and when required. There is no benefit in having your investment empty for weeks on end because the price is not competitive.

10. Do you have a collaborative business partnership? Make sure you feel comfortable with your property manager and have confidence they will represent your best interests in a professional and ethical manner.

 

They are all good point @Mel Corliss. No objection with any of them.

 

11. Do they offer to transfer the rental funds weekly/fortnightly, rather than monthly.

(Once you get a few properties this can amount to serval thousand $, better to be in your account than theirs )

 

12. Can the client pay you directly rather than you debiting the rent?
Allows for debt recycling.

 

Thanks Chris, yes - coming from a different industry it has been a bit of a shock as to how basic customer service does not seem to apply in a lot of property managment scenarios. I have heard it all from landlords and tenants alike and I continue to be amazed at the lack of care and competence that is often displayed!

 

I hear you. Believe it or not, I started NextGen simply because I was rarely happy with the level of service I was getting from my property managers for my own properties! To be fair, I don't think it is intentional. It's just that agencies become so big that property managers can no longer cope. Being a property manager is not easy, most of the time dealing with problems and being on the firing line. The moments of happiness/sense of achievement are few. It wears people down with every passing year. I've seen great property managers, eventually give up... I have one like that in Melbourne right now and to be honest, this is what agencies like mine are constantly trying to figure out: how to maintain the high level of service whilst still growing... not easy

 

Completely agree Chris, it is incredibly hard - it is largely a thankless job and unfortunately what I am seeing is high turnover and teenagers managing properties who really don't have the wherewithal or inclination to provide fantastic customer service. I love that we truly have that point of difference, my cousin is the senior property manager and is the first point of contact for all landlords - she is personally vested in seeing the business succeed therefore she has 'skin' in it. Perhaps that's the answer.. shares in the business for property managers, succession etc. It's a trickey one, but unfortunately poor customer service is prevalent across all industries. It continues to surprise and shock me as great customer service is really no that hard to achieve!!

 

Skin in the game is exactly what I am doing too. Plus trying to automate as much as possible AND be the most supportive boss possible. We should talk... I'll PM you tomorrow.. keen to understand what you guys are doing...

 

Hi Chris, Happy Tuesday! yes would love to chat. Skin in the game is critical... for passion, longevity and dedication (& a supportive boss always helps )