Hi, We've had our rental property for just close to 2 year now. The property managers we're with initially did an inspection after 3 months, then another at around the 10 month mark. They did another 12 months after that which was December 2016. I've just realised they have not done another last month. Obviously this shouldn't be something I have to chase up, but how often should rental inspections be done? We pay 5% property management fee but I'm starting to wonder why I'm paying this when they don't do more than 1 inspection per year and even then i have to chase them. The tenants pay on time but I think that's more to do with them being good tenants than the property managers. If I wanted to look around at other property managers and look at changing, how would I do that? The lease is due towards the middle of February. Thanks for any advice.
Can I suggest you check the contract that you signed with the PM - I'm pretty sure the frequency of inspections should be in there. But most seem to be every 3 or 4 months. Because it has been so long between inspections, I would hate to see what would happen if the place was now in a bad state, and you needed to submit an insurance claim, as one of the first things that they appear to ask for is PM inspection reports! And I'd definitely be changing PMs when the tenants leave - you are required to given written notice (usually 30 or 60 days, I think - but again, check the contract you signed with the PM). I went through 3 different PMs before I found one that I was happy with........
Every 12 months is poor. If its in Vic like you are, the max is every 6 months and they should be doing them twice yearly.
Thanks for the quick comments guys. Assuming I was going to change and I did find another property manager, how does that work with the current tenants? Would the new property managers just contact them directly to (possibly) arrange another 12 months lease once the current one expires?
If it’s in Vic the first inspection is at 3 months and then 6 monthly thereafter. It’s not hard to do, every system I’ve ever used has a spot to put in the next inspection date. You don’t need to wait for the lease to expire. In Vic there’s no notice period to terminate an agency agreement (usually allow 2-3 business days). You just need to contact a new PM and they should be able to handle the changeover, they would notify the old agent, contact the tenants, plus they should also arrange an inspection with the tenants to ensure they know the property. Side note, since the lease is expiring in Feb the old agent should’ve already arranged a rent increase (if required) and contacting you/the tenants to arrange the lease as the existing tenants need to be provided with at least 60 days notice of a rent increase. So they’ve missed that as well and means that a rent increase wouldn’t come into effect with the new lease and instead you’d need to start this from a different date. It’s not so much an issue, but it’s less than ideal as it’s easier to do it all at the one time.
Completely agree with the above. Poor form not to do the twice yearly inspections. I don't think I know ANYONE who only does inspections annually.
If possible, I would try to arrange to be present when the next property inspection happens. You should be looking for: a) how the home now looks compared to the original entry condition report. Were proper photos/videos done by your current agency? Ask for access to these documents before you go and inspect the property. b) have a look at any potential maintenance issues, talk to your tenants and ask them if there are any problems - if your PM has only inspected a year ago, things like leaks or overflowing gutters etc. may have developed and they can cost you a lot of money if left unchecked. c) examine the property for what is 'fair wear and tear' and what is potentially a bond issue and ensure your PM understands your expectations. Although you are paying 5%, this is not a high rate and unfortunately you usually get what you pay for. It might be worth paying a few percent more and actually getting someone who looks after your property. A bad PM can cost you thousands (literally). Finally - check your financial records. Does the amount that has been deposited into your account minus the agent's commission and the repairs/bills actually add up to the amount of rent you should have received. You would think that agents can't stuff up financials, but they do. I have a client where there cheap (5%) agent actually missed over $2000 worth of rent!!! They were a big National company, so absolutely no excuse. The tenant missed payments, and the agent just didn't follow up. Once the client moved to my agency, I had to go back to the tenant and negotiate a payment plan to recoup the losses.
Every three months to prevent problems from occurring. The whole point of inspections is to nip any issues in the bud. A good tenant can easily become a nightmare and a good PM should be looking to prevent problems and look after your property and your tenant/s. I would change to another PM.
That's 1/2 what we pay over here in WA, and get the same type of service. Check your statements to see they've been charging you for inspections they havn't done.
Best advice I can give you is go in there and do your own inspections, either independent or with your PM. After what I've seen in the last 13 years with PMs, interstate investors must be rorted blind with some of these PMs that are around.
I actually rang an agent about a property in desperate need of an inspection as it looks like the house is abandoned (it isn't). No way it has been inspected recently and asking for trouble leaving it for so long.
Couldn't agree more! You could even try managing your own property while you are looking around for a new PM to see if doing it yourself would suit you better.
