Letting agent: change to end of month payment of rent

Discussion in 'Property Management' started by Greyghost, 5th May, 2016.

Join Australia's most dynamic and respected property investment community
  1. Magnet

    Magnet Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    375
    Location:
    Sydney
    We're all with the same agency.
     
  2. Greyghost

    Greyghost Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    1,635
    Location:
    Brisbane
    I took a personal interest in this.
    I obtained the auditors number and spoke to him direct. He was a great bloke.
    He confirmed that there was no requirement to pay post end of month.
    It was simply they have over 500 properties on their rent role and it is a beast of an admin task to process some pre and some post end of month payments (not talking mid-month here). By paying all post end of month it makes their admin task of reconciling end of month much easier for them.
    So I was correct in my initial suspicions all along.
    I sent an email to the director of the business, saying that I would have had no problem with switching to post end of month, none at all if I was told it would was to make their own admin process quicker and more reliable. Not under the pretence of trust audit legislation.
    If the director is willing to lie to his clients on something like this is makes me question his other business practices and standards..

    We are at this agency due to a referral. The agent who managed us is now in a bdm role. That agent was spectacular.. In her absence a junior was trying to juggle everything. There is only so much one person can do on their own so I understand now why the service slipped so much over the past 6 months.
    I was having serious issues with communications:

    Tenant needs X fixed. Sure send a tradie out.
    Never hear back
    Hey what happened about that thing getting fixed?
    I'm not sure I'll call the tenant.
    Tradie never rocked up

    So just various different versions of that story and I took over organising trades and repairs myself. Surely they have a process to know:
    1. Tenants needing a repair
    2. Call trades
    3. Waiting on quotes
    3. Follow up quotes and get instructions from landlord
    4. Inspect trade work
    5. Invoice as part of end of month rent

    Surely they should develop a job pipeline or work in progress to manage these types of things. Especially in an area such as Logan with older houses and rough tenants. Can't be by the seat of their pants..

    Maybe it is just the business advisor in me speaking..

    Now there is a new manager on board and she seems promising. She has acknowledged the issues over the past 6 months and has cleared many of the book of arrears on their rent role. She communicates clearly with me.

    PS the junior staff member is lovely and I don't blame her for what happened either.

    Others have been talking about jumping ship but I'm going to hang in there as sometimes it is better the devil you know..
     
  3. D.T.

    D.T. Specialist Property Manager Business Member

    Joined:
    3rd Jun, 2015
    Posts:
    9,189
    Location:
    Adelaide and Gold Coast
    Thorough write up Greyghost

    On the disbursement matter, honesty would have been better for everyone involved.

    On maintenance matter, should definitely be using software to track progress of each step.

    Always interested to hear how other agencies are going so as to reflect on ones own quest for ongoing improvements.
     
    Greyghost and Magnet like this.
  4. allegria

    allegria Member

    Joined:
    22nd Jun, 2015
    Posts:
    21
    Location:
    Brisbane
    I don't think so. Mine is based in Pine Rivers
     
  5. Magnet

    Magnet Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    375
    Location:
    Sydney
    Wow, maybe the same external agency as the excuse is almost word for word!