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Removing emotion

Discussion in 'Investor Psychology' started by Owlet, 9th Nov, 2015.

  1. Owlet

    Owlet Well-Known Member

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    I just thought I'd ask fellow pc folk for strategies to help me remove the emotion from PI. How do you not let stuff bug you? (Besides getting out)

    Example: PM waits for me to chase follow up on applications. They have tenant ready to move in asap but tenants can't move in because PM hasn't done condition report. 1 weeks rent lost. Follow up again and am told instead of moving in asap lease will start in another week. (The reason we accepted these applicants was to have someone move in asap). Another weeks rent lost. PM was told to advise tenants lease was to start earlier. I am advised today that they want the extra week and PM says she has no leverage. Its easier to tell the landlord who pays part of my wage to suck it up.

    What are strategies I can use to deal with this as some will tell me its 'trivial stuff'. The learning and maturing PI side of me says - you have tenant moving in. The emotional side says but we chose a less than ideal tenant to have someone in sooner only to have the PM delay the process and cost us $800 in rent. This little stuff adds up to a lot of $$ in leakage. When a lot of effort goes into saving and budgeting to get ahead this bugs me.

    Constructive and helpful strategies please.
     
  2. wylie

    wylie Moderator Staff Member

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    We avoid all this delay stuff by self-managing. It is not for everyone, but I've also felt frustrated by delays when we've used agents to find tenants. When we've done that, I just suck it up. They have dozens of houses they are looking after and I have just a few.

    I once drove to the house to see how many went to the open home, only to see the agent pull up ten minutes late (of a 15 minute open house window), enter the house, leave again within two minutes. I thought at the time he may have just needed to use the facilities. He was there for three minutes maximum. He certainly didn't wait for the 15 minutes the house was meant to be open. Not that it mattered. Nobody turned up to inspect that I saw from my vantage point.

    I didn't go there to spy, but was genuinely curious as to how much interest our house had... none!

    I then listed it on Gumtree and passed the tenant to this agent to do the checks, forms etc. I usually do them, but if I'm paying a week's rent + GST and advertising, then they can do it. That tenant was tired of dealing with agents, tried Gumtree and she has been there for over five years. Fantastic tenant. I'm aware though that Gumtree also brings tyre kickers and those who cannot go through an agent for various reasons.

    The other thing I don't like is that agents allow tenants several days to go back and clean. If this happens, I go in and clean myself. That way it is ready for rental the next day. I understand why they have to do this, but I don't have to.
     
  3. D.T.

    D.T. Adelaide Property Manager Business Member

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    There's a couple of different things there that stand out to me.

    Firstly, yes there should be very little emotion in investing. It's purely a numbers game. One weeks rent out of 400 weeks of ownership of the property is neither here nor there, but obviously everything should be mitigated. Remember the saying: control the things you can control, be happy with the things you can't.

    However, I think you have valid reason for concern towards some of the items you've listed. If PM delayed the process they should be footing the bill, this comes down to accountability and responsibility. This was something that was in their control - they should have done the report which would have allowed the tenant to move in.
     
  4. The Y-man

    The Y-man Moderator Staff Member

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    Difficult if you not born a Vulcan.

    The Y-man
     
  5. Azazel

    Azazel Well-Known Member

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    If they're like this from the start, imagine what they'll be like if there's issues later on.
    If they're not much chop, you've got to stay on them constantly, make them sick of you. Talk to the principal if you have to.
    Probably better to find someone else though.
     
  6. Owlet

    Owlet Well-Known Member

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    Thank you for the replies. Issue was sorted with a conversation. One strategy I have used is - this time will pass. Although, it usually isn't long until the next issue arises.
     
  7. Xenia

    Xenia Adelaide Property Manager Business Member

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    Owlet - you have every reason to be emotional, reading that makes me angry and it's not even my property.
    It takes an hour to do a condition report - I just did one now 9:30pm for a tenant who is moving in tomorrow. Old tenant moved out today, our cleaners just left a few minutes before I got there and a few of the old tenant's stuff is in the garage waiting to be picked up tomorrow.

    Pushing the lease out even one more day to make things easier for us would cost my client $85 (calculated on daily rent). Property managers should maximise your return not cause vacancies and you need to very strongly hold them accountable to that.
     
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  8. MTR

    MTR Well-Known Member Premium Member

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    I agree with Xenia, I would be furious, this is your money going down the toilet and I would be telling the PM to lift their game.
    I don't tolerate incompetent PM,
     
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  9. Owlet

    Owlet Well-Known Member

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    Thanks Xenia and MTR. The PM thought another week wouldn't matter. I explained from a landlords point of view that missing out on that rent means and what we as a family sacrifice to make up that payment. The PM acknowledged that she hadn't thought about the effect on landlords in that way. We can't change the past. The PM knows our expectations and the tenant is in.
     
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  10. Michael_X

    Michael_X Mortgage Broker Business Member

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    Hi Owlet,

    Two suggestions

    1. Search for a better PM. It takes time but when you have a team that shares your interests and goals, your journey will be alot smoother. I would even say this to your PM, put them on notice over this incident and let them know it's unacceptable.

    2. Look to the bigger picture. Even with a great PM, you will incur costs here and there. As long as the property is getting you closer to your end goal, then these hassles are worth dealing with. I know this is hard, no one likes incurring unnecessary cost.

    Hope this helps,
    Michael
     
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  11. SeafordSunshine

    SeafordSunshine Well-Known Member

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    Is your Property Manager an Investor? That usually sharpens their senses!
    I hope this helps!
     
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  12. Bargain Hunter

    Bargain Hunter Well-Known Member

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    Owlet,

    Not a good start with the PM and perhaps worth a chat with the Principal to determine if there is a more experienced person available to service you. If not, see how they go and if they don't perform to your satisfaction shift to another agency.

    Regards

    Andrew
     
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  13. monalisa

    monalisa Well-Known Member Premium Member

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    @Owlet

    Is the property near you or interstate?

    I don't think you are being emotional at all.

    I have had a similar experience recently - more to do with tenanting the property - needless to say I am unhappy due to the lack of delivery - so looking at alternatives. PI is a business, and you need to minimise losses where possible. It is expected there would be outgoings every now and again, but if these are without reason, I would be looking at alternatives.
     
  14. BuyersAgent

    BuyersAgent Well-Known Member Business Member

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    I agree with above posts about PM, consider a better one.

    think property is stressful for some and not so much for others. Some things you can control, and others you can't. If an older IP has a hot water system, and it dies, this is an example of something you need to address, quickly, without complaints and you could not control. This is a "deal with it" problem. If it stresses you out, it means you either need a mindset shift or consider passive paper investments like shares.

    However what you have described is not property specific, rather about the professionalism (or lack) of the property manager. This is something that can be controlled by 1: Demanding better service from existing PM. 2 Switching.

    Choosing a quality PM is one of THE MOST IMPORTANT BUT UNDERRATED tasks an investor ever does. Getting it right makes ownership easy for years. Getting it wrong costs thousands and causes heartache. Don't cut corners on that one.
     
  15. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    As an aside, emotion, and closely connected intuition arent necessarily a bad thing in most decision making processes.

    Allowing these supplementary "tools" to overide the other ( often hard) data all the time isnt smart either

    ta
    rolf