Finding a good property Manager

Against my recommendation in Brizzy 18 months ago one of my clients went with a certain agent for management because they were the cheapest. In The 12 months they were there, they had 4 changes of property management, 3 maintainance projects started and not completed. A massive bill for fixing a sliding door due to the tradie having to attend the site 7 times before the agent was there with keys to actually do the job, and the total frustration of my client with the whole process, having to fly from Sydney to Brizzy to have a go at them directly before things were actioned on was all too mcuh for them and they nearly sold. Had they sold it would have been just before the recent $25k hike in prices in the area and they would have never invested again.

Thankfully this has been solved by the new managing agent who has 5 staff for 480 properties instead of the 3 staff and 800 properties the other place had. So rather than how many years in the industry, check on how long each of the current staff have been in their current position with this agent, again check numbers managed and confirm you will have one contact and not several if you have multiple properties. This is vital for accountability. If more than one person is responsible, you guessed it, no one is responsible if something goes wrong.

Check your statements and confirm with simple calcs from time to time that the amount of commission agreed to is being actually charged, and also confirm what is defined and included in the management fees so you dont get hit with costly hidden extras. Perth agents give you a reasonable management fee but then charge extra for inspections and 2.5% above invoices for trades. All very rude.

Cross out the 90 day termination clause they all have on their agreements and write in 30 days and initial it. This means that if they prove useless and you change managers you are not liable to pay them fees for longer than 30 days.

Any good managing agent taking on your properties will usually forgo the 30 days commision for the first month to get your business. This means as you are still paying the old useless one you are never hit with double management per property at any time.

Gee I should write a book.

Anyway, enough ranting and raving from me.

Good Luck and dont take prisoners…..take profit!!!!

DD

Buyers Agent (Dip Financial Services(FP)
Don’t sweat the small stuff,and it’s all small stuff!!

Find out what the “Sales” department of a Real Estate agency is charging in commission rates. If they are discounting their percentage rate. You can bet that this with filter on down to the Property Managers in that office, in the quality of their service. Don’t forget that most prop mangers only care about the quantity (numbers) on there books, not the quality. I have been burnt many times by incompetent and under-qualified Property managers and it hurts bad!

Slowly but surely, word of mouth from friends/colleagues/family has helped me change this.