Property manager delegation

All my IPs have had property managers. They are near the property, know the law and do the job better than I could. Except on one memorable occasion the property managers have been very good. Hence, I'm happy to leave nearly everything to them, relying on their judgement. Delegation is a spectrum. One end has limits and the job is checked by the person delegating. The other end is along the lines "This is what needs to be done, get it done and if you need my advice let me know."

How much do people delegate and how closely are property managers monitored?

 

Delegation is definitely a spectrum, as a property manager I see the whole range. Although I find it depends on investment experience level and often what they do for a day job.

Personally in my portfolio i've gone from monitoring the PM very little and having things go wrong, to monitoring a lot, back to monitoring very little again now that I have PMs I can trust.

 

As Mel said, if you've got good PM's you don't need to be on their back all the time.

 

Thanks. Last week there was an exit report and some subtle uncleaned areas from the last tenant. He was pretty good and simply missed the cleaning spots, which did not show up in the pictures. I said to the PM to fix it. When the new lease was signed in the last fortnight I said to the PM that I did not need to know anything about the prospective tenant. I said to use your judgement. Ages ago I had a bad PM, missed a lot of things on a condition report. My comments on the missed items took most of a page, and the PM was removed. The REA gave me a much better PM.

 

What were the areas?

 

I've haven't come across anything more than average PM's in Brisbane. I gave one the boot recently and interviewed several others before coming to the conclusion they weren't offering anything more than I can do myself from 1000km away....with 1 exception, they can take some photos every 6 months. It wasn't worth the $2500pa for some photos.

 

Inner east and Kew.

That seems to me to be a lot.

 

Sorry I meant what were the areas that the tenant missed cleaning?

 

You quoted me saying areas in the property, so it's my mistake. However, it's good for a laugh. Broadly speaking I was correct, but more specifically two window sills, a dark corner and small spot on a wall. It was just an oversight.

 

I have had a keyboard warrior PM, who was really good with writing very long essays but not at doing her job. My experience in renting out my IPs over the last few years is that you need to atleast check all is in order once a month.