Hi all,
I have properties located in 3 states and managed by several managers. Im finding that Im spending too much time working with the managers. To me this defeats the purpose of having them and paying commissions every month.I also work full time and would like to remain that way.
I have been thinking about how I can reduce my time managing managers. I have some ideas:
1. Find better managers (although I think I have done this but there must be more room for improvement)
2. Sell them and purchase property all in one area. Then I will have only 1 manager to deal with. However it would appear this increases risk regarding local factors (ie if the suburb goes downhill).Does anyone have other ideas which I could explore?
Thanks
MattMatt,
I rarely hear from my property managers, isn’t that why I pay them? My advice – find better managers. Alternatively, find better properties because the PMs must be ringing with problems.
Just a thought,
Rachel
1. Only sign up Lessee’s that don’t whinge. There is heaps out there.
2. Instruct the caretaker not to call you, and see how they go spending your money as opposed to calling you and letting you solve the problems every time. This’ll take time to discover if they are better than you or not. I suspect they, having hundreds to caretake, as opposed to you, who are only interested in yours, won’t be as good.
Then you’ll be in a position to weigh up what the phone calls and hassling from the caretakers is worth.
Thanks, please keep ideas coming.
I think the issue I may always face is PMs get to take out costs prior to paying you the rent proceeds. If in dispute I have to work harder to get the money back. A classic example is key cutting. I always question why Im paying for them if it is either the tenant or the PM who has lost them. This issue applies to anything on the property that is not tied down. Another example is the antenna power booster. I have had this go missing 2 times at a cost of $150 a pop.
I may come up with an agreement with the Agent regarding my property, but if the agent is too large, turnover causes the agreement to be forgotten. Everything that was agreed has to be re-explained.
Yes right now Im quite frustrated with it all. I move on average every 2 years so managing myself is out of the question. Consolidation still appears to be the best option.
Or have I missed something obvious?
Matt
Matt,
I can certainly understand your frustrations! The things that you have described are what you are paying the PM to d0…eg notice that the booster is missing when the tenant leaves and charge them or take it from the bond.
Maybe you should look at smaller ’boutique’ property management firms?
I have had some problems with an agreement that I negotiated that was ignored. I just kept at them and it was resolved. I must have a red mark against my name now because they are very circumspect with me now!
Rachel
Hi Matt
Sounds like you need to say “NO” to your PM more often.
The booster saga happens to every PM until they learn to include the booster on the inventory and remember to check it is still in the property after the tenant has moved out. Often the movers grab it with the TV, or a helper does, or the tenant has been looking at the thing near the TV for so long he thinks he owns it. If the tenant takes it, the PM should deduct the cost from the bond.
Keys – the complete set should be Xerox’d on a flat bed copier, you get a copy signed by the PM, and the tenants sign off on a copy after receiving a set of keys. After the initial 2 sets are provided by you to the PM at your expense, any missing ones are paid by the tenant or the PM.
Suggest you review the Managing Agency Agreement with the PM reminding them of what their responsibilities are, and to use their initiative and act on your behalf, give them their parameters and tick them off if they ring you needlessly for authority already given.
good luck [biggrin]
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Hi Matt
what is the problem ?
is it that the managers call you all the time ?
or
is it that when they do its with frustraiting issues ?
Unfortunatly when you own enoughh properties that becomes part of life. I have at numerous times owned 25+ properties and its just part of the deal. But as other have said be firm and consistant and if not happy move managers.
Unfortunately Property is touted as passive income, NOT ! You need to be involved with your assetts. If its not what you want sell and buy Managed Funds or Property Trusts.
regards westan
Properties in the USA 15-25% returns- email to join our database [email protected]
Hi Matt,
Try this. Schedule a regular follow-up with the pm for each property. 10 minutes (probably less ) on the phone with each manager every 2 weeks.
The relationships you build with the managers will be worth their weight in gold. If they do not perform just find someone else who will. Make sure you are holding up your end of the bargin by attending to maintenance etc.
So even if you are holding 15 to 20 of your own properties it is very very manageable. At the same time you will be finding out vital commercial information about the rental market that is not coming from the sales staff.
If you can’t spare 10 minutes a fortnight for your investment then maybe find something else to get into.
Oh, be clear with the managers what you expect and what their role is. You will probably find that this will make it easier all around. eg. you never want to be contacted regardless. you only want to be contacted when x happens, or only want to be contacted when x happens and the pre determined course of action fails.
We consider ourselves to be long term investors so management is crucial. In OZ we are blessed with great property managers who I do not bother to call every two weeks. Why? Well because they have been managing the same properties for 10 years and I think they know what they are doing by now and Know what is expected.
Cheers
[email protected]
Property Spotters living in NZ
Renovation & Project Management
Email now to receive info on the lastest deals!Hi Matt,
Try this. Schedule a regular follow-up with the pm for each property. 10 minutes (probably less ) on the phone with each manager every 2 weeks. So even if you are holding 15 to 3
The relationships you build with the managers will be worth their weight in gold. If they do not perform just find someone else who will. Make sure you are holding up your end of the bargin by attending to maintenance etc.
So even if you are holding 15 to 20 of your own properties it is very very manageable. At the same time you will be finding out vital commercial information about the rental market that is not coming from the sales staff.
If you can’t spare 10 minutes a fortnight for your investment then maybe find something else to get into.
Oh, be clear with the managers what you expect and what their role is. You will probably find that this will make it easier all around. eg. you never want to be contacted regardless. you only want to be contacted when x happens, or only want to be contacted when x happens and the pre determined course of action fails.
We consider ourselves to be long term investors so management is crucial. In OZ we are blessed with great property managers who I do not bother to call every two weeks. Why? Well because they have been managing the same properties for 10 years and I think they know what they are doing by now and Know what is expected.
Cheers
[email protected]
Property Spotters living in NZ
Renovation & Project Management
Email now to receive info on the lastest deals!Don and Liz,
You both don’t have to post.
I can’t believe you were both thinking the same thing at almost the same time.
Or is there an echo on this postMal
Getting out of your comfort zone, can help you become comfortable
Hi matthewc73
Are there any ‘national’ property management firms out there? Just thinking…with rent payments able to be done online or at the post office, there isn’t much need for a shop front anymore….surely there is someone out there….anyone know of any?
cheers
longshanks
Thanks everyone for your feedback!
I think its the good old communication which will prevent future problems. Its a proactive strategy to manage your PM.
I like the call my agent every few weeks idea. I think once a month would be enough. Its good to know whats happening to the agency as it may give you a heads up of issues that could come from them, in addition to tenants!
Personally Id love to have a go managing myself. I think that would require me to own a lot more properties (25 would be a good number), near where I live and I think that would be the right time to leave full time work. Im not sure if Im ready to leave work yet!
The national PM is an interesting idea. The PM needs to be hands on and local to the area so they can find good tenants as well as be on top of any maintenance issues or tenant issues. I have also found the big franchises are the worst and I would never ever use them again!
In summary, here will be my strategy:
1. Inventory of all lose items that belong to the property (Bins, Keys, Power boosters, etc)
2. Special notes on items I want checked as part of the exit inspection (eg may be ensure electricals work, taps dont drip, etc).
3. Note any expectations I have regarding managing the property in addition to the management agreement.
4. Make regular contact with the PM. At the end of the conversation ensure I am comfortable with my tenant, the health of the PM and management of open issues.Thankyou again!
Matt
You must be logged in to reply to this topic. If you don't have an account, you can register here.
