What questions should I be asking for first pm

My first IP is nearly built, looking for a pm in brizzy. The one I'm looking at is r&w they charge a rate of 7.7%

 

What area of Brisbane, people here may be able to give you some suggestions.

 

Redlands

 

My advice would be to also check their general proximity to the property - a local agent may allow for more local knowledge, including a good support network of local service providers (helps with maintenance when it is required).

This is certainly just a consideration. Some agents service a wider area by offering a great mobile service and do this well (there are many in this very forum) so it is a good point of discussion. You certainly do not need a shopfront to offer a great service.

It is also worthwhile looking into the other fees. Often the top line fees stand out but you would benefit from considering the other fees including those that may add up over time (e.g. EOFY statement fees, periodic inspection fees (YES they exist!!!), lease renewal, etc.)....

I would also ask about the number of inspections completed each year. There are some agents reducing the number of inspections conducted. We complete the maximum possible each year (in line with the QLD requirements). Some agents are reducing this - not all agents are doing this, just a few that I have noticed.

I had a landlord ask me just recently some great questions. I like it when a new landlord does some good due diligence over their new PM. A couple of his questions:

- How many inspections do you conduct and over what period of time?
- How do you screen tenants?
- Who in your team would be our property manager and how often does this change/what turnover do you have?
- How many properties do your property managers each manage?
- Do you check repairs once they have been carried out?
- Do you collect rent through a 3rd party?

All the best with your search.

Aaron

 

Another good question is the rate when vacant and advertising fees.

My PM is a one off fee of one weeks rent, that includes advertising and viewings until rented.

 

The person you're speaking to - ask them if they're the one managing your property. quite a few owners get caught out - a smooth talking BDM often lists for big agencies, but then passes your property to a PM you have never met. In Victoria - you can have an 18yo who has done a 2 day course online from home managing your properties... so always a good idea to check.

Make sure you feel comfortable with the person too.

 

firstly Congratulations!
A few questions came to mind,


How long have you worked for this agency?
What is the owners name?
What kind of tenants would you put in a house like this?
How long do you think it will take to rent it?
What are the comparable rentals?
What are good tenants looking for at the moment?
What kind of advertising would you use?
How much will it cost?
Who does the inspections?
Is it the same person who checks the references?
How big is your team?
Who do you use for tradespersons?
Are they licensed?
Who do the tenants speak to if there is an issue?
Do they put any queries in writing?Will you forward me a copy if I want it?

Some questions you need to ask yourself
Do I have my head around the QLD landlord and tenant act?
Dull reading I am sure, but knowing what it says will really help a novice!
I do hope this helps!

 

I asked about landlord and building claims, if we need to claim something we need to pay $100 per hour for them to gather the information needed, submit the claim and work with the insurer.

Also tribunal fees, if we have to go to court we pay $100 per hour for them to be there in person to gather all information, submit the application.

Is this common over all PM's? $100 an hour geez haha

Also they do 3 checks per year but only 2 are free. 3rd one is 145 this was not in the fees list i had to ask.
$5.50 for admin fees, $20 end of year statement. 7.7% management cost but goes to 6% after a 2nd property.

 

Congrats @Synergy. Some great questions I would just make sure that you ask questions where the answer will have some relevance to you and what is important to you. One of the harder things when starting out is not knowing what you don't know. Some examples:

Always an interesting one and you may have some preconceived ideas around an appropriate number. In reality this number is not static. A better question may be "do you have a maximum limit on how many properties each PM manages?" Even then it is only part of the equation. The number is arbitrary without understanding other aspects of the business. I would have just as many questions if the answer was 50 as if it was 250.

Similar again maybe a better question may be "what involvement does the owner(s) have day to day and can I contact them directly if I have an issue?"

I would also caution against just hearing what you want to hear as opposed to what you should or need to hear.

If the PM gives you an actual answer like "oh we will have it rented within two weeks" they are just telling you what you want to hear. Not a good sign. If instead they list what activities they will undertake to give it the best chance of being rented in the shortest amount of time, that is a good sign.

Fees are important, but it isn't the starting point.

- Luke

 

This is what I charge, let me know if you find anyone who provides better value for money - I'm honestly interested to know because I've yet to come across it.

 

I've covered in a bit of detail based on my own experience in questions & selecting a PM here:
What I learnt out of buying 7 properties

Hope it helps and just remember, it's not all about getting the lowest management fee. It's about getting value.

Cheers,
David