PM Expectations

Hi,
I'm getting rather frustrated with my PM and their lack of action and communication.

I have a property in Seaford, VIC. 3 bdr near the beach managed by a chain PM in Frankston (B&S).

I signed the lease renewal approx 2.5 months ago for my existing tenant - they are a whole other story, but being consistently behind in rent is almost better than no rent at all. The lease is due to expire tomorrow but no signed forms, which isn't a big deal (move to month to month which is fine).

Other instances of lack of pro-action include;
- Inspections - I'm asking every 6 months when they are
- Not communiciating when a new tenant is added to the lease. Surely I should be informed? What if the original tenant bails but I never approved this new person and know nothing about them

Communication lacks as I'm chasing missing payment statements,
the tenant is constantly behind (14 days effective today) but appears to not be a priority to get this rectified despite the agreemment that they must be 30 days in advance.

When they do communicate as a result of my action, I generally get the answers I need but I hate being the one chasing all the time.

I am paying for a service, so I'd like to get some! But I also understand that they are busy, but aren't we all?
Am I being over the top? Should I be warning my PM for the tenant addition?
I do like to think I'm reasonable and rational so don't want to be burning bridges with jepordising the current good relationship I have with the PM.

In other questions - anybody got a hot tip for a killer PM in the Frankston region with a web self service portal to I can have a snapshot of whats going on with my property / download statements ect?

I'm at the point of building a solution myself.

Thanks all

 

@Lil Skater do you work that far out east? Qura Property

 

You're better off dealing a proactive PM who is all over this stuff rather than waiting for slowies to get back to you, like @Lil Skater for instance

 

I actually don't agree that this is ok. It puts you into a precarious situation where the tenants are now required to give less notice and you (and your non-responsive agent) have minimal time to plan for it which can impact your cash flow. We apply a very strict -90/-60/-30 day to lease expiry process that takes control of the situation and prevents this occurrence from happening. Your PM does have the ability prevent a lease from going month to month, but most don't know how or what to do to prevent it from happening. Despite the usual claim that you can't force a tenant to sign a lease (which is technically true), there are other very effective methods you can employ to obtain a result prior to it going month to month. We do it very successfully and except at the wishes of the landlord, we haven't ever had a lease lapse into month to month.

Tenants tend to drag their feet and if you don't take control of the situation, they will lead the parade and it usually won't end up in the landlord's favour. It's what a proactive PM should be doing to protect your interests as I myself have experienced many PMs over years who don't take vacancy risk exposure to the landlord seriously and let it lapse into month to month. With most PMs, the solution is that you are either forced to monitor lease expiration yourself (which shouldn't be happening), accept a higher probability that the property will become vacant at short notice if it goes month to month, or take a gamble that even if the new lease is sent out on time, the tenant will sign it within the state's stipulated time frame that doesn't preclude further proactive action - this includes NTLs and rent rises. If your PM isn't monitoring lease expiration dates then this is not only lazy, it's a complete lack of understanding of investment principles and what's important in the investment equation.

Secondly, I think communication is probably the single biggest complaint that landlords have when it comes to their PM. For reasons beyond me because it's a simple matter of time and task management yet most PMs fail to get it right time and time again.

If I were you, I would definitely be contacting @Lil Skater and making the switch because I know for a fact she responds to emails and calls very quickly in addition to an array of other expertise. Don't settle for for poor PM, particularly when it's not hard to change!

- Andrew

 

Thanks for the input all. I really appreciate the time and effort put into the responses. Given me a lot of food for thought.

 

Shame you aren't in western Sydney.
Id love a PM like you guys haha

 

Hi Kwana, I can't believe you're questioning yourself as to whether you're being over the top. Your PM sounds appalling--you should given them the boot ASAP.

 

Nothing is out of the question in due course!

What is most disappointing about PM in general is that the majority of it is the application of process and procedures that can be handled in a very disciplined and methodical way, yet most PMs take a scatter-gun approach whilst failing to have even a basic understanding of what is important to an investor - the combination of which results in the poor level of service most of us have experienced.

I believe if property management was viewed as a service based business that happens to be in the field of property, rather than the other way around, the results for investors would be far better...the original post being a classic example!

 

Hit up @Nick Valsamis Very pro-active, on the ball and has been doing a stirling job on my W Syd properties @BKRinvesting

 

So an update... I've given my tenant 90 days notice and the PM is next... The property will get a makeover and hopefully all done prior to winter.

Should be an interesting ride.

 

Kwana, this lack of communication thing, well, let's just say, your not Robinson Crusoe.

but

Not handling the money, inspections and lease though, that is not good enough, the tenant is probably now shocked.

 

In this situation the best thing is to make an appointment with the PM and explain your concerns in person. Then outline what you would have expected and ask if your expectation is excessive or unreasonable.

At that point then outline the service standard you expect and indicate the outcomes that will occur if the standards are met and if they are not met.

You have a relationship with the PM and every relationship has good times and bad times.

Quite often I see people move from service provider to service provider seeking great service - but it is a two way streak. To get great service you need to actively contribute to the relationship.

 

If a PM has several hundred properties they manage, how are they supposed to keep track of when a lease is due to end 90/60/30 days before the event? does it beep like my fridge when the door is left open? Is the software used in the office capable of keeping track of these events?

I sympathise with most of the problems mentioned but keeping track of your own portfolio of a few properties is very different from managing a large rent roll. Seems to me that some landlords expect a PM to have the same interest in their property as they do, they dont ... , PM's just want the whole system in the office to work.

PS I was a PM for many years and a landlord with multiple tenants.

Renters 'stuck between private greed and political gutlessness'

 

Thanks Ross, that was my intention before I took any action. I do hope that I am actively contributing, I respond quickly, I believe I'm friendly in the communication (sometimes context may not be intepreted) and I know I'm reasonable.

 

plus 1
I also agree that tenants should not go month to month.
Lack of communication is annoying but if things are getting done anyway then it would not affect you.

Allowing a fixed term tenancy to lapse into a periodic tenancy because the pm is not on the ball IS a big deal.
It will also affect insurance claims and lease break costs should the tenant default - which sounds like they are already there.

 

Certainly I think it comes down to the tools they use. Clearly there's some failings either in the software or the manager themselves. Hence the frustration at lack of communication in particular. I completely understand PMs have a LOT to do, don't we all! Consistent problem tenants need a better way of being identified and honestly if the tools are the problem, look at updating them. It's only going to help the PM, tenant and landlord. I'm paying for a service and sometimes it feels as if I'm just handing over money for very little (which I know is not true!).

 

Property managers should be running regular reports on upcoming expiring properties well in advance. The system is the same whether it's 50 or 500 properties.

 

Yep! That's exactly what happens. Tasks are set in the software and due process is followed. It work very well is the agency is systemised.

 

Its been a while since I worked in a RE office and am amazed at what the new software can do, makes regular tasks so easy to track these days ...

 

Actually, with many PMs, not only is it true, but you can be paying them too assist in devaluing your property as well.

I have been into places where the PM thought internal modifications, holes smashed through walls, no preventative repairs at all & poor tenants was all the norm. They actually thought it was funny TBH.

No one is perfect, but there are plenty who seem too not care at all, if you land one of them, watch out, it will cost you.