Hi Guys, Hoping you can help me. I’m doing some research into property investor perceptions of Property Managers. I have been crawling the internet looking for a study of how satisfied property investors are with current and previous experiences with Property Managers and cannot find anything concrete….So thought I would try and make my own.
If you have the time…It would really help me if you could just rate your experience (from 1 to 10) with Property Managers in regards to this question. “Do you think you have got your money’s worth when using a property manager?” Feel free to comment if you would like. Please see Poll below.
1 = It is a complete scam
2 = I made a significant loss.
3 = definitely not worth it.
4 = not worth it for what you get.
5 = Unsatisfied with the service
6 = They did the bare minimum
7 = It is worth it.
8 = I’m happy with the results.
9 = I’m over the moon with the results and service.
10 = Best investment I have made.I’m happy to share the results with anyone that is interested after I get the analysis finished. I’ll put in this thread. Please see poll below.
Hi Hilly,
Good on you for having a go at quantifying something that is perhaps a bit intangible. I couldn’t easily answer you poll questions, so thought I’d throw a few ideas into the mix so you can ponder.My results over time would have ranged between 4 and 10 on your poll. Had I bought anything out-of-state, I perhaps might have needed to use 1 thru 3 at some stage (mainly because it is a bit more difficult to find good PM’s from a distance – so, if I couldn’t get referrals from others, I might have had some bad eggs in amongst my choices).
As with most things, the gold is in the people themselves. I had great PM’s that worked for lousy RE agents, and great PM’s that worked in great agencies, and poor PM’s working for great agents (but not for long though).
If you are simply polling the CONCEPT of using a Property Manager versus going it alone, then I am in the camp of a 7 and an 8 (these answer two different questions in my mind). I was happy, and it was worth it.
Benny
I think the answer to that also depends on circumstances too. Some PMs are great with basic buy to let properties, but they may not be the best when it comes to managing multi-let properties (duplex, 4-plex, etc… though not that multi-let are all that common in Australia).
I think a good idea when contacting such PMs are:
1. Give them a map of the suburb you want to invest in and ask them to highlight the high and low demand streets, etc… within that suburb. Repeat with a few different PMs in the same area and see if they match up.
2. Ask them if they have experience managing different types of properties (units, houses, multi-lets, commercial properties, etc…)
3. Ask to see if they can advise some kind of “price guide” and “demand guide” documentations. I would think good PMs have such resources, and they provide good feedback in those regards.
4. Also, important to find out what is their process when it comes to dealing with rent arrears and evictions.
I think asking those questions and looking at their responses will tell you a lot and give you a reasonable feel if the PMs words stack up or not.
Thanks Guys, Just adding in a little curve ball. If property management fees weren’t tax deductible would you still be giving above 5? Or is this tax deduction a big part of why property management is a way to go?
My take is if you only have 1-2, then you may be inclined to do so yourself, but if you have a portfolio of say, 15-20, then it becomes a living nightmare for you do micro-manage everything.
Whether it is tax deducible or not then becomes an independent topic.
Hi Hilly,
Just adding in a little curve ball. If property management fees weren’t tax deductible would you still be giving above 5? Or is this tax deduction a big part of why property management is a way to go?
Just like in my previous answer (where I differentiate between 7 and 8) – one aspect is purely monetary, while the other ranks the “worth” of the agent to you. Or am I reading it in a way you didn’t intend?
Right now, on a re-read, perhaps it may be better to re-write things from one aspect or the other. Phrases like “worth it” imply a $ value, but perhaps you weren’t meaning it that way?
e.g. If I am time-poor, or not wanting to make many trips to visit the IP, then, even if it costs me extra money to use a PM, it might still be “worth it” even though the $ return has dropped. Similarly with the “Tax Deductible” question.
Steven makes good points that align somewhat with where I am at,
Benny
I’d only ever use a property manager for looking after my IPs – I don’t have the time/patience/expertise to deal with them.
Having said that – finding a good property manager isn’t always easy :-( I’ve had some shockers, some great ones and everything in between.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
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