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

Median rent is around $380/week I think currently. Last I heard, typical PM manages around 100 to 180 properties, but the ones with more generally have more support in place.

Just an interesting side note - the WA Department of Housing equivalents (Housing Service Officers) apparently manage something like 300 to 500 each.

 

Support in place is additional staff - Giraffez was drawing comparison on fees earned for an employee.

Yes, I have heard that. Their role is simplified though in that they don't have investors or landlords to concern themselves with.

 

This question will be answered differently by every office you ask.

A non experienced person with no systems and no back up will lose control of 30 properties very quickly.

A large systemised office can handle 1000 properties effectively.

The problem is not number of properties, the big problem in property management is high burnout rate. It's huge. Property managers burn out due to unreasonable tenants and unreasonable landlords.

Things go wrong all the time in property management (or any business), the way a business deals with set backs is the real value of a business. Most inexperienced property managers are too emotionally immature to put things right, they don't have the resilience to stand up to challenges and collapse.

Property managent is easy when things are going right, the value of a property manager is the ability to turn things around when they have gone wrong and not get burned out.

Yes it's difficult to find.

 

I started scrolling through the threads after not being happy with two different PMs. I've just had one who hasn't bothered to advertise my property in Brisbane - a month after settlement! It only just got cleaned this week. We've made phone calls, chased them up.. they're so lazy. Meanwhile losing $500/week in interest. Very frustrating. My husband was taking care of it and is a bit more relaxed than me, I've now contacted another company but I wish I'd done it sooner.

 

I went to an inspection today as a prospective tenant. The agent was too busy texting or doing god knows what on her phone to even acknowledge us. Other people would try to talk to her and she would still be staring at her phone the entire time, I don't think she looked away from it once.

Hopeless.

Went to a second one which was conducted by the tenant and he actually introduced himself, answered questions, had application forms available and even had candles lit..

 

If that was my leasing agent, she'd be fired. She just cost the owner a weeks rent (~350 adl median) plus jeopardised agency's shot at letting fee revenue

 

I have seen this too, but what can you expect from junior staff by themselves on low income ? If the place is alright you would apply I guess ?

 

thought i'd add and perhaps someone can reset my expectations but i was experiencing foundation issues and sought their advice/recommendation on finding a suitable inspector/engineer to assess (i'm in vic, prop in qld) - the lead property manager (my pm's boss) told me that i dont pay her to manage building issues, theyre only involved when there is a regulatory/legislative/tenant problem.

this was a former ray white and now mcgrath... i'm not sure if i'm a wood duck and should of known better or whether this mob are completely off the planet.

 

An agent managing your place should not be rude I guess, if it is an issue they alerted you too, and you just want some guidance, it would be pretty easy to say ...sorry, we have no one, but maybe look at x, y or z...or search google, or ask this builder we know if he knows someone.

I can understand that they want to make it clear they are not structural engineers or builders, as some owners may think they can manage that task for them.

 

Even though an old thread, wanted to add a very important point I don't think anyone has touched upon.
I first learnt this when I heard 'a real estate agency consultant' give a speech about property management. She agreed with what I had thought that agencies are often far too sales dominated.
The principals (owners) are almost invariably salesmen/women and whilst many years ago when the business started they may have dabbled in property management, they now have little knowledge of the workings of property management. She said she was amazed how many high profile Sydney agency owners didn't know basic renting law as an example.

Differing from others here who talk about better qualifications, better training & better pay, I would add into this agency owner misinformation the word wellness. If one ran an agency and knew the rigour of property management then things like flexible work hours, ability to work from home, a well functioning after hours call system & proper recognition of Saturday/Sunday work would be properly taken account of.

All of us on here who work the strict 9 to 5 at a work place can lament how difficult it can make life things like looking after the kids, seeing to urgent home issues & keeping healthy. To ask that strictness and weekend work of someone doing such a trying job as property management is silly.

 

Although the technology gives many workers portability and flexibility of how they deliver their work, meet targets and KPIs, it's not possible to show a vacancy in your PJ's from the comfort of your home office, may not be able to provide the level of security of data required by Fair Trading etc for all tasks.

How would you feel if your personal data was on display at the PM's home and it was stolen by a break & enter? Files in the agency are meant to be kept secure (or behind firewalls etc), same cannot be guaranteed if working from home.

 

A lot of people also push very hard on the price for property managers, expecting to pay very little but still wanting an excellent service. I think this is a case of, you get what you pay for.

I actually think the general quality of property managers has improved over the past few years. It's been a very long time since I've had to remind any of my PMs about the bi-annual inspection & review. Repairs get completed quickly and properly. Rent is never late. I haven't had a vacancy in years.

The one thing that continues to bug me is PMs tend to be inherently conservative regarding rent increases. Last year one PM suggested increasing the rent by $5. I pointed out that the identical property 2 doors down was advertised for $100 more per week. I know I'm not going to get a 25% rent increase in a single year, but this was a bit ridiculous.

 

I managed just over 1000, but this was in the 1990's however I had staff and worked for a large RE company at North Sydney.
I know some are going to say you just cant manage so many, however I kept a close watch on my staff and they knew what I expected, had very little trouble ...
I do know times have changed and there is a lot more expected of a PM these days ...

 

There's no right or wrong number - varies depending on skill of staff, geographic spread, staff assistance, technology utilisation, houses/units, socio-econ status of the area, repair-level of the properties.

 

Not all property management work is client facing nor producing of personal data. An agency will typically at least operate with email (which is as secure as the mobile phone they receive emails on) & a property management software (wherein personal data is usually stored). Many of these software groups have phone app versions of their software=Rest, RP Office etc..
The actual VIC Residential Tenancies Act actually talks about the security of keys & original leases etc., these yes should be stored in an office.

As to the non client facing work=answering emails, organising repairs, chasing up late rents (arrears), chatting to landlords=all could be done at home.

 

I've only ever had one really good PM, out of at least 10 that I've used.

 

If you've been unhappy with 9 out of 10 Property Managers, you've either got a knack for repeatedly picking bad agents, or there's something else wrong...

 

Just because 90% weren't very good, doesn't mean that they were dreadful (though there were at least a couple of those).
If you or anyone else has a recommendation for very good PMs in either Rockhampton (I've really struggled finding a good PM there) or Logan, I'd be grateful!
Ricky from Real People Real Estate (and his team) in Elizabeth, SA is fantastic though!

 

Just thought I'd share my recent experience - used a PM i(n an area we have not rented an IP in previously) that was recommended to us.
I returned to the property at the end of the open home to hear the PM saying to a keen renter - I will let you know in 5 business days! This group had already applied online and submitted all the info required; they were keen because they wanted to move in before the start of the school year. Anyway, PM rings me 2 days later asking if I accept. I say yes and ask for confirmation of move in date (she didn't have a move in date for them). I was lead to believe this was a done deal and booked removalists, cleaners, carpet cleaners. Another two days pass and I am chasing the PM for confirmation. Long story short - another property came online in those two days and they snapped it up. I don't blame them. When there is low vacancy in your area, people posting they can't get a rental in the area, a number of hits on the net, several people at the first open house and no tenant applications (helps if the PM takes some to hand out) - there is a problem (its not the house). There was no follow up phone calls for the other attendees for feedback. On the second open a brand new PM no experience and a lack of professional dress (wore thongs and a tank top to the first open when she shadowed the PM) was left to do the open on her own. Suffice to say I have ended the agreement.

 

The answer to the question posed in the thread title is pretty clear for West Australia. I cannot speak for other states. Certainly in the Perth region over the past 30 years I have found that 90% of managing agents are incompetent, dishonest, lazy, greedy or all four of these. I'm still looking for an agent who is NOT all four.
I believe part of the blame lies with lazy investors who don't show enough interest in their residential investment properties and/or do not hold their agent to account. Bad behaviour on the part of agents is rewarded by lack of action on the part of the investor.
That is not much of an excuse for the agents mind you. Sometimes, but rarely, a decent PM is a victim of the bad policies and attitudes by their business owners/directors.
Having recently changed one of my managing agents I look forward to be able to recommend a good agent to Perth investors.