Hello,
I am a beginning property investor and I have been researching property management companies as I would prefer to have someone else managing my properties.
I have some questions that I would love to get feedback on from more experienced investors:
Would you prefer a percentage charge or a flat fee?
If a flat fee than how much should it be?
Would you use a fully online property management system or should it have a physical branch?
What are the most important things you look for when choosing a property manager?
Would you be happy only contacting your property manager via email or do you want a phone number or should it be in person?
Is it better to have a system that is fully automated online for you and sends out scheduled reminders or do you like a person doing everything?Also if you have any other general comments/advice I would really appreciate it!
I would like to get information from all over Australia and particularly the Canberra market,
Thanks,
Danni
Hi Danni.
Sounds more like you’re trying to figure out how you can setup a business in this area.
If that’s the case, be direct.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
A couple of years in the property industry wouldn't go astray Danni. This is a very difficult market at present and unless you have a reputation in the area, have very deep pockets to cover expenses for 2-3 years and are prepared to purchase a rent roll and staff you will find it hard going.
Hi Danni,
Expectations of property managers are completely subjective, just like your investing strategy. It's about what you want. If you're choosing a property manager keep in mind you are handing your asset to this person and they can directly impact on the decrease or increase of the property's value and condition and in turn your ability to keep a viable investment.
If you're looking to set up a business, I'm happy to share my experience with what clients preferences are. Next time just say so. Property management is an intense job and I always believe it takes a particular type of person to do it efficiently, with passion, honesty and integrity. The main point I keep hearing over and over from property investors is – good communication is the key.
If you have no experience in the real estate/property industry, don't have a sound knowledge of the legislative requirements and haven't had the experience in how legislation applies in day to day management of people's properties… I strongly recommend getting some experience with a reputable real estate agency or property management specialist before stepping into business. You will only burn your reputation and your clients otherwise.
Would you prefer a percentage charge or a flat fee? Percentage charges are the most common for a letting fee & monthly management.
If a flat fee than how much should it be? I'm not a fan of flat fees.
Would you use a fully online property management system or should it have a physical branch? This industry will always be a people-orientated industry. A physical branch to meet tenants, sign documents, discuss any arising issues with clients face to face is much better than online.
What are the most important things you look for when choosing a property manager? The ability to trust the person & the company with your asset that you've worked hard for.
Would you be happy only contacting your property manager via email or do you want a phone number or should it be in person? Nothing beats face to face contact. I regularly invite clients to inspections of their properties and take them for coffee afterwards. I'm a person after all and it builds a good relationship with clients which is paramount.
Is it better to have a system that is fully automated online for you and sends out scheduled reminders or do you like a person doing everything? A good management system is key. All real estate agencies and property management specialists have them. It leaves no room for human error i.e. forgetting to do a periodic inspection, therefore ensuring you are servicing clients properties correctly. I don't like online systems which landlords can log on and view details because it cuts out the element of real personal contact and essentially makes PM's lazy – I like calling landlords to let them know their rent is on the way or the property inspection was done and most, if not all, of my clients appreciate it also.
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