Local Real Estate Agent vs Onsite Property Manager

Discussion in 'Property Management' started by Hobieyak, 11th Jan, 2021.

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

    Hobieyak Member

    Joined:
    18th Jun, 2015
    Posts:
    12
    Location:
    Sydney
    I have a Queensland investment property (townhouse) in one of those gated complexes with an onsite property manager. Recent events have made me question the wisdom of allowing the onsite manager to continue acting as my agent.

    In many ways I'd like to change but am worried about whether a local agent would be able to effectively manage my property with an onsite complex manager who could be potentially offside.

    Has anyone had any experience with having their gated complex IP managed by someone other than the onsite manager?
     
  2. thatbum

    thatbum Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,850
    Location:
    Perth, WA
    Why does it even matter what the onsite manager thinks?
     
  3. Hobieyak

    Hobieyak Member

    Joined:
    18th Jun, 2015
    Posts:
    12
    Location:
    Sydney
    That's what I'm looking for advice on - whether an onsite property manager can make things difficult for an outside agent to effectively manage a property. Can they / do they do things like delaying access for the outside agent or their tradespeople?
     
  4. Tom Rivera

    Tom Rivera Property Manager Business Member

    Joined:
    1st Jul, 2015
    Posts:
    2,718
    Location:
    South East Queensland
    Onsite managers have a competitive advantage in their complex, but that doesn't stop many of them being useless anyway.

    It's very common for agents to work in a complex with a potentially offside manager, it can cause issues, but nothing major. It's more important that you have an agent you trust to do a good job.
     
    Hobieyak, Scott No Mates and Pumpkin like this.
  5. Pumpkin

    Pumpkin Well-Known Member

    Joined:
    26th Jun, 2015
    Posts:
    1,342
    Location:
    Brisbane
    Onsite Managers spent a lot of money in buying that Management Right. It is only right for tgem wanting to grow it, not to damage it. So, do you know why they are not performing?
    If it is due to ignorance, you can have a chat and convey your expectations.
    A good OSM does have lots of advantage over an offsite one, lots of intimate knowledge, and should be more committed. I'll be more concerned in how much better the offsite ones might be......
     
    Tom Rivera likes this.
  6. Hobieyak

    Hobieyak Member

    Joined:
    18th Jun, 2015
    Posts:
    12
    Location:
    Sydney
    I don't know the reason why the onsite manager is acting the way he is. It's all to do with an excess water bill. My lease agreement provides for the tenant to pay for any water usage over 45 Kl per quarter, I don't bother if its only a bit over, but last quarter they used a whopping 142 Kl. The onsite manager doesn't want to address the issue with the tenant - keeps coming up with excuses like "perhaps Urban Utilities made a mistake" or "a toilet was leaking slightly and nobody noticed so its not the tenant's fault". I've chased up with Urban Utilities and there's no mistake. I've had the toilet repaired - but it seem strange to me that for the month following the excess quarter the water usage was back to normal - this was before the repair was done.
    I've spent a fair bit of time going back and forward with the OSM and have the feeling he is not looking after my interests.
     
  7. Pumpkin

    Pumpkin Well-Known Member

    Joined:
    26th Jun, 2015
    Posts:
    1,342
    Location:
    Brisbane
    Ah, water and QUU! We have so much trouble with our Townhouse Complex that in the end we installed new individual meters, lots of money. You think the problem would go away? 12 months on we still have issues just engaged a Leak Detector.
    Did you have individual meter and if so, water efficiency cert?

    How does the OSM score in other areas? Dealing with Tenants, rent, repairs etc? If you havent yet, would suggest you meet our talk to them.
    Next maybe to look at the Body Corp minutes.....
     
    Michael Mitchell likes this.
  8. Hobieyak

    Hobieyak Member

    Joined:
    18th Jun, 2015
    Posts:
    12
    Location:
    Sydney
    I do have an individual meter, that's how I have been able to have the clause in the lease regarding a 45 Kl limit that the rent covers. Haven't got a water efficiency cert yet but this problem has prompted me to investigate. Got a quote for $250 from a local plumber which also covers replacing some components. Will look at this more closely once I make a decision about who will be managing the property.
    The current OSM took over the complex a bit over a year ago. This has been the first significant problem that I have asked him to deal with. However, I have started checking references and the Google reviews of his agency are very poor. Most of the complaints are to do with sales but what I'm reading gives me cause for concern.
     
  9. Pumpkin

    Pumpkin Well-Known Member

    Joined:
    26th Jun, 2015
    Posts:
    1,342
    Location:
    Brisbane
    Have you done an estimate of how much this "leak" is going to cost per Quarter? Note it's the Tenant's responsibility to mitigate the loss of an my Owner.

    We're so tired of QUU.. their bill is 3- months too late and is really not good enough with rents with only 6-12 months.

    Not sure how much credibility Google Review has with OSM, would have thought it's best to look at BC minutes and records.

    Best of luck from me, stay positive on everything and stay negative with the test!
     
  10. Hobieyak

    Hobieyak Member

    Joined:
    18th Jun, 2015
    Posts:
    12
    Location:
    Sydney
    Thanks Pumpkin,
    The bill for that Quarter was over $800 and a normal Quarter should be less than $300. The OSM did a meter reading the following month that showed consumption was returning close to normal (which gave lie to his claim that the problem was caused by a leaking toilet) so I don't expect the costs to continue.
    My main gripe here is that the OSM seems particularly reluctant to follow up with the tenant. Don't know if I'm getting paranoid but I'm wondering if he has some relationship there or is just plain scared of them.
    Would be interesting to hear if anyone has any recommendations for good property managers in the Oxley (4075) suburb.
    Best wishes for your water problems too.
     
  11. Tom Rivera

    Tom Rivera Property Manager Business Member

    Joined:
    1st Jul, 2015
    Posts:
    2,718
    Location:
    South East Queensland
    The tenants are responsible for reporting leaks in a timely manner that they could reasonably have been aware of (e.g. they might not be able to detect an underground leak in yard). Some of those internal toilet leaks are pretty quiet and tenants might not realize they're using water, but based on the consumption amount given I would strongly suggest the tenants would have heard it running.

    That said- did the onsite manager conduct a quarterly inspection during the time we think it was running? They should have picked that up if they were on site while it was leaking.

    What it comes down to is that neither the tenant or the manager reported the leak to you in a timely manner, causing an elevated water bill that someone who is not you should be responsible for.
     
  12. Hobieyak

    Hobieyak Member

    Joined:
    18th Jun, 2015
    Posts:
    12
    Location:
    Sydney
    I received a letter from Urban Utilities before the end of the quarter telling me that the water consumption for the current period was excessively high. I immediately sent this letter on to the onsite manager who reported back that he had conducted four separate readings of the meter during the day (I assume while the tenant was out) and there was no indication of water leaking.

    It was only later when the bill arrived that the excuse of a leaking toilet was brought up.

    I'm still thinking about engaging a local agent. I've sent a strongly worded email to the onsite manager this morning and will see what he comes back with.

    Thanks for your advice on this, it is appreciated.
     
  13. Pumpkin

    Pumpkin Well-Known Member

    Joined:
    26th Jun, 2015
    Posts:
    1,342
    Location:
    Brisbane
    Thanks for your thanks, I am doing this half for myself too.... love-hate QUU! o_O
    A bit hard to read all this on the screen, and might have missed important details and gave wrong advice.
    Just wondering, since the OSM is only new, maybe these Tenants have been there long before them and the issues might be old? Remember QUU bills is always 3-months late, or more!
    Looks like the "Leak" stops after your repaired the toilet?

    Just thinking how much better can an Outside Agent meet your expectations.
    Big OA will not put in much effort esp after hours and "special" tasks. Small OA might charge more.....

    Best of luck from me!
     
    Michael Mitchell likes this.