PM recommendations Perth NOR

Discussion in 'Property Management' started by QbiK Evolution, 11th Dec, 2017.

Join Australia's most dynamic and respected property investment community
Tags:
  1. QbiK Evolution

    QbiK Evolution Well-Known Member

    Joined:
    17th Jul, 2015
    Posts:
    207
    Location:
    Perth
    Hi everyone, I'm finally moving out of my house in girrawheen, I've always lived in one of the units on this property however I'm now moving to roleystone so would like someone to take over the management. I've got 3 properties to manage on two lots so am looking for recommendations for property managers around this area.

    Thanks in advance
     
  2. chrish

    chrish Well-Known Member

    Joined:
    22nd Nov, 2017
    Posts:
    47
    Location:
    Perth
    Following :)
     
  3. Scaphella

    Scaphella Well-Known Member

    Joined:
    6th Jun, 2016
    Posts:
    535
    Location:
    WA
    In an effort to consolidate ours we used the same PM. I don't recommend it unless your IPs are in the same area, go with local experts. We now are back to separate PM's, they never like travelling more than 5kms to do opens/inspections anyway.
     
    Ross Forrester likes this.
  4. MyPropertyPro

    MyPropertyPro REBAA Buyer's Agents Sutherland Shire & Surrounds Business Member

    Joined:
    1st Jul, 2015
    Posts:
    1,874
    Location:
    Australia
    I disagree with this theory as local PMs can be just as bad. While I agree that distance can be an issue for a lazy PM, it's only because they are lazy in the first place. Geographical proximity is not commensurate with quality property management in my experience as it all comes down to the business model and with whom your dealing. I've written quite extensively on the reasoning why in other posts.

    I'm currently shortlisting PMs for my recent purchase in Carine and will be conducting interviews over the coming weeks. I'm happy to let you know who I choose if you like?
     
    Perthguy, chrish and Ross Forrester like this.
  5. Scaphella

    Scaphella Well-Known Member

    Joined:
    6th Jun, 2016
    Posts:
    535
    Location:
    WA
    It’s not a theory it’s our experience, and I’m not saying any of them are of better quality than the other, there are no guarantees especially with a profession with such a high turn over of staff....I kind of see it like a tradesman, does he really want to travel from butler to innaloo to replace a light fitting? And if there is an emergency you kinda want them within close proximity to the property...and in girrawheen with such a high crime rate I wouldn’t want an agent too far away.
     
  6. MyPropertyPro

    MyPropertyPro REBAA Buyer's Agents Sutherland Shire & Surrounds Business Member

    Joined:
    1st Jul, 2015
    Posts:
    1,874
    Location:
    Australia
    This is obviously the first time you've read about this then which reinforces my point further. It's a well debated theory and there have been many threads on it on this forum alone. Some people won't use a PM based on geography based on preconceived ideas before they've had any experience either way.

    This is a great example of my point. Are you able to enlighten us as to how the proximity of your agent makes you feel better in relation to crime rates? The police attend police related matters, not the PM i.e. you aren't going to call the PM to respond to a break in. The PM will deal with any subsequent repairs or tenancy related legal issues, but often not attend the property themselves. They will organise trades etc. Having your PM within a 5 minute drive rather than 25 min might make you feel warm and fuzzy, but it's not going to prevent the problem or materially change the outcome. Again, the quality of the PM, their ability to problem solve, deal with the issues that are presented and their overall experience, not their proximity, will. How they deal with problems is geographically independent.

    The management of your property is predominately via remote means no matter how far they are away from the property as it is process and procedure based e.g. rental arrears, organising trades, doing lease renewals and any other number of processes aren't done standing on the driveway of the property. Any geographical based inefficiency is borne by the agent and business model, not the investor.

    Whilst I can appreciate your assumption that the proximity of the agent to the property contributed to your poor management, a lazy agent is never going to do the right thing and the correlation as to whether or not they do what they say they're going to do isn't correct.

    There are many agents closer to the property that will be far worse than an agent who is a further drive away and there are just as many positive stories as there are negative stories about both sides of the theory.
     
    Tom Rivera and D.T. like this.
  7. D.T.

    D.T. Specialist Property Manager Business Member

    Joined:
    3rd Jun, 2015
    Posts:
    9,189
    Location:
    Adelaide and Gold Coast
    Proximity to property isn't really an issue.

    Group up properties in the same suburb when doing quarterly inspections. Deliberately drive past properties when doing home opens.

    Being near to it isn't going to affect how quickly tradespersons can be arranged as a good PM will have multiple options, eg we have a north and south handymans, whereas our plumber has multiple vans so they're willing to do whole metro for us.

    Being nearer to the property isn't going to do anything when arranging lease renewals, chasing arrears, paying council rates, lodging insurance claims, etc etc.

    Yes, travel time adds up and reduces some hours out of the day, but if properly scheduled and organised in an efficient manner it isn't noticeable.
     
    MyPropertyPro likes this.
  8. MyPropertyPro

    MyPropertyPro REBAA Buyer's Agents Sutherland Shire & Surrounds Business Member

    Joined:
    1st Jul, 2015
    Posts:
    1,874
    Location:
    Australia
    ...and this in itself is indicative of a well organised and efficient PM which probably means better management across the board anyway.
     
  9. Scaphella

    Scaphella Well-Known Member

    Joined:
    6th Jun, 2016
    Posts:
    535
    Location:
    WA
    Well I got this letter 6 weeks ago, say what you want about this agency, I’m just telling it how it is from my “experience”. No assumptions, merely telling from my experience that a GOOD local agency would be better than a GOOD agency further away. That’s my opinion speaking from my “experience”.

    “After much consideration, we regretfully advise that ****** will be no longer able to manage your investment property, and as such we will be releasing you and your property from the existing Management contract with our office. This decision has not been an easy one to make, but we believe it is in your best interests moving forward. With our office being located in the Northern suburbs, and due to a restructure of our business practices, we can no longer offer you the same level of service that we had been offering to you in the past. This is purely a business based decision, as we feel that due to the distance between your property and our office, we would not be able to act in your best interests if an emergency situation was to arise. We believe by releasing you from our contract, you will have the opportunity of now securing the services of an agency that is much closer to your property that will be able to offer you a much higher level of local service and commitment. We hope you understand this decision as we firmly believe it is in your best interests.”
     
  10. MyPropertyPro

    MyPropertyPro REBAA Buyer's Agents Sutherland Shire & Surrounds Business Member

    Joined:
    1st Jul, 2015
    Posts:
    1,874
    Location:
    Australia
    I will quote my own post in answer to this from earlier in this thread

    If the business model is designed for it, capable of it and indeed, their intention to provide a high level of service regardless of proximity, there is no problem. This agent has said themselves that there is a restructure of their business practices which could mean anything from staff consolidation to cutting off properties that aren't profitable.

    If agencies simply take on properties from anywhere (even in close proximity) just to be greedy and for sake of bringing on business but do not have a plan or model to cater for it, yes, the outcome will be poor. This isn't related to proximity per se, it's as result of poor business planning and practice. @D.T. has already succinctly given an example of how this is dealt with in part.

    This is just waffle and who knows whether they actually believe it themselves. I'm yet to be given an example of a tenant emergency requiring such immediate response by the PM that the distance makes any sort of difference whatsoever. Some PMs (and landlords) seem to think they're working for the emergency services with a 000 extension. Time is just never that critical in property management.

    Having said that, good on them for being honest and providing you the opportunity to find another PM before service suffers as they keep taking your money. That in itself is ethical and admirable.
     
  11. D.T.

    D.T. Specialist Property Manager Business Member

    Joined:
    3rd Jun, 2015
    Posts:
    9,189
    Location:
    Adelaide and Gold Coast
    Hmm and even if the office was nearby , no guarantee on whether staff live locally to the office.

    If there was some kind of emergency (house burnt down, pipe burst, locked out of home, no cake left in fridge :p) there might be a bit of a drive anyway, but there's numbers that tenants can be given to resolve stuff to a point until further steps can be taken.
     
  12. Westminster

    Westminster Tigress at Tiger Developments Business Member

    Joined:
    3rd Jun, 2015
    Posts:
    11,331
    Location:
    Perth
  13. QbiK Evolution

    QbiK Evolution Well-Known Member

    Joined:
    17th Jul, 2015
    Posts:
    207
    Location:
    Perth
    Thanks MyPropertyPro, that would be a great help. id be very interested to know what sort of criteria you judge on considering your a professional in the industry also.
     
  14. QbiK Evolution

    QbiK Evolution Well-Known Member

    Joined:
    17th Jul, 2015
    Posts:
    207
    Location:
    Perth
    Maybe i should rephrase my question. Im not looking for an agent who lives next door. But i do feel they should be within 30min drive of the property. I just feel that most companies would be too stretched if their pms were expected to travel this far to see all of their properties. They could potentially spend half their day on the road instead of doing their normal duties.
     
    Scaphella likes this.
  15. Westminster

    Westminster Tigress at Tiger Developments Business Member

    Joined:
    3rd Jun, 2015
    Posts:
    11,331
    Location:
    Perth
    3 of my NRAS properties have just been reassigned by the PM company to another company as they no longer what a large geographic spread of properties. It's somewhat understandable but it should have still been maneable but there was no choice.

    As PMs don't get paid for travel time they do prefer stuff within 30-45 mins and will try and use their time wisely to arrange similar locations inspections at the same time.

    I use TC Realestate as it's a small personal company and all people are over the ageof 40. I find maturity in REAs/PMs to be very important and they are much better at telling tenants no and keeping me in line.
     
    Scaphella likes this.
  16. QbiK Evolution

    QbiK Evolution Well-Known Member

    Joined:
    17th Jul, 2015
    Posts:
    207
    Location:
    Perth
    Thanks Westminster, ill give TC a ring and organise to have a chat.
     
  17. MyPropertyPro

    MyPropertyPro REBAA Buyer's Agents Sutherland Shire & Surrounds Business Member

    Joined:
    1st Jul, 2015
    Posts:
    1,874
    Location:
    Australia
    I have a list of 40 questions and whilst I don't necessarily ask them all, I can tell pretty quickly who is who by not only what their answers are, but how they answer them. You should also know what answers you want to hear. I've so many landlords ask us questions and I can tell they're template questions and don't really know why they're asking them. It's good that they're trying, but know what you're looking for before you start.

    A lot of PMs tend to waffle and tell you how good they are and give examples of tenants they've come down hard on or cases they've 'won' in the tribunal. What you should be interested in is procedures and processes and how well they know their own product. Most importantly, they should also ask you questions!
     
  18. MyPropertyPro

    MyPropertyPro REBAA Buyer's Agents Sutherland Shire & Surrounds Business Member

    Joined:
    1st Jul, 2015
    Posts:
    1,874
    Location:
    Australia
    I do agree there is a certain limit that makes it impractical. However 'normal duties' does involve being out on the road and with today's technology, there is nothing stopping a PM scheduling a number of routines in a given area that is 30 minutes or more from their office and completing any normal desk based duties in between using cloud software. Working from cafes/home has become the norm in many industries and PM is one of those where it actually works really well.

    The proximity to PM argument is quite old school where people weren't able to work anywhere but the office. There is little to nothing that a PM does in the office that they can't do on the road these days. I say this with all due respect, the line of thinking really just demonstrates a lack of understanding of the business model and underlying workings of what day to day PM involves. Having been on both sides of the fence for a while now, it really is not that relevant.
     

Buy Property Interstate WITHOUT Dropping $15k On Buyers Agents Each Time! Helping People Achieve PASSIVE INCOME Using Our Unique Data-Driven System, So You Can Confidently Buy Top 5% Growth & Cashflow Property, Anywhere In Australia