Why is it so hard to find a good property manager?

I agree with what you have said, my understanding is the majority of PM's manage 120-150 properties, however I was informed just last week that the ratio is now closer to 200 properties per PM this is ludicrous.

 

It is the weekend, time for a weekly PM stoning......yay

Managing the manager is a real thing.

Ironically, I have had about a 50/50 split with NSW property managers.

Anyway, I have found QLD far worse and much higher fees for the privilege, the ones I have dealt with there seem to have staff churn as a monthly sport (maybe they read our PM threads ), it got so silly with one of them that they never were able to organise anything or know what was going on or gone on.

But in saying that, I have not had to deal with that many QLD PMs

 

Just plain and simple incompetence, with lack of caring for good measure.

Was talking to a new PM the other day, asked them to send an agreement through, this person was the manager, sent with wrong property, name, rental amount, phone number etc etc, the other half said straight away, this is not starting well if they can't get the details right. It is a very valid point.

Sometimes the choices are between dumb & dumber unfortunately.

PS not sure if there is such a thing as a job where stuffing up is your required task, but many would def be suited to that.

PS PS I just had someone trying to charge me again and re sign a tenant on a new lease, I said and whats wrong with the 12 month one they signed 3 months ago ? ..... silence.

Manage the manager people, is a must.

 

Re the low pay and poor conditions as an excuse, I do not buy that completely.

It is a hard job, no doubt, if your doing it properly. But even if your a slob, if you at least take advantage of the software or technologies, many of them free if you look, staff should be able to manage the basics pretty well.

I see some decent PM operations, same staff & each assigned roles with maybe some cross over. They communicate.

Then you go to dumb and dumber and co, they hire the 3 stooges who do not talk except about whats on facebook, who is doing what with who or when they go to lunch.

 

There are exceptions to every rule, just like not all properties go down in value in a declining markets. Broadly speaking however, it is definitely the case. Pay someone $40k a year, you will not get the same skill set, qualification and capabilities as someone on $150k.

 

I'm with dabbler on this one. If they cannot survive on the fees they offer, they shouldn't accept it. But you shouldnt sell the moon to the customer, take their money and do a less than satisfactory job.

The thing is, there isn't even an option, If the calibre is this low, even if I offer 20pc, it won't be any better.

 

I find it a shame that an investors choice to sell is based on a poor performing pm or pms - this shouldn't even be a factor in your decision! But sadly it is.

I also did the same with one of mine where I tried three different agents and they were all incompetent. So I ended up selling.

 

The other issue with property management is they tend to have too many properties to staff ratio....very hard to continue to provide prompt service and communication with too many LL's to deal with - as well as tenants. Not a job I would like to do.

 

You're right, it won't be better straight away with the current modeling and staff.

However, if we started a new division of our agency on an ultra-premium fee structure and charged 20%, modeled the same way as the agency I use in the US, providing the same calibre of employee with the same business and tertiary qualifications, I can guarantee you that it will be much, much better. Your PM will be degree qualified and on a good 6 figure salary with a full time assistant.

If you'd like a Form 6 with a 20% management fee, please send me a private message and if we get enough support, we will start a new division.

 

Firstly, paying more won't make a lick of difference because if someone is lazy, they will continue to be lazy for a higher salary because that is their nature.
When I started my current job I was on a low salary and I still put in 60+ hours a week because I actually wanted to produce something good. Paying more would have done nothing. I have seen it with others too. I have also seen higher paid people who are complete buffoons.

Secondly, there is no need for someone to be paid a 6 figure salary to call out handymen, go and do inspections, take pre-prepared contracts to be signed, and to give access to a new property for people to look at.

It's a bit like saying you should not complain about getting diarrhoea and ending in hospital because it is your fault for not paying $80 for the meal. I don't NEED an $80 meal and I should still have reasonable expectation of not ending up in hospital for a $15 meal.

Similarly I don't NEED a master negotiator and salesman like I would when negotiating contracts for millions of dollars. All that is needed is someone who is not an incompetent twit. Basic competence should not require a premium price.

 

Don't need Qantas business class either, but it'd be a nicer experience (and lower odds of crashing) than Tiger's back row

 

Lol but the odds are the same compared to Qantas economy !

 

Apples and oranges.

You are referring to your comfort over cost because it is you who is flying.

Lets correct your analogy.
How about rather than you flying, you send 3 of your staff on economy vs business class to meet a client. The difference in cost is thousands of dollars to you. You are now considering the cost because it is all related to the cost of your business and whether it is worth the extra cost or not, and furthermore your own personal comfort does not come into it any more. Economy is all of a sudden looking much better. Do you now think it is an acceptable excuse for them to be incompetent and crash the plan when you pay this lower cost. No I don't f***ing think so. You don't expect high comfort, but you still expect basic competence.

 

I manage ad and media agencies as part of my job. These issues arent new to PMing. Its always high hours for low pay and dropping excessive workloads and jugging multiple clients (and not the corner fish n chips kind). Cant think of a solution though, other than insisting on getting a good manager who handles a smaller VIP pool of properties for the same fee, which wont fly

 

I think part of the solution is better training. Its a big problem in WA, which I think is partially because you can't obtain a 'management only' license - and PMs are almost always tacked onto a primarily sales based agency as almost an afterthought. So the principal doesn't know or doesn't care much about the PM side of things.

 

You are so right

 

How many properties does an agent typically have to manage? Someone mentioned 200, say if the fee of 8pc over avg rent of 600 a week , the monthly commission is almost $40k a month!

Are my numbers on the high side?

 

Thatbum is from Perth, where the average rent is much lower than that. That might be the average rent in Sydney, but fees are much lower there.

And I really really doubt anyone is managing 200.

 

Ok, my stab in the dark figures are totally out then

 

If you think its heaps of money you're welcome to try starting up