“property managers” too busy to manage properties!

In 17 years I have had 12 investment properties and I still havn't found a PM that I am totally happy with. 

We are currently building and renting a place and now I am experiencing what it is like to be a tenant.  I'm now even more disillusioned about what a PM actually manages.  I am currently in the process of getting my real estate licence as I am very passionate about the poor quality service delivered by PM's and I would like to improve the service currently being offered.

We have been in our rental property for 1 year now and these are the things that disappoint me:

– PM still hasn't inspected the premises, we could of caused significant damage by now.
– We rang two weeks ago about a repair (first time we have asked for anything) which is a leaking hot water system.  It is outside and streaming out.  I live in Toowoomba and water is very precious here, alot of water has been wasted.  I rang for the third time today, had to raise my voice because the PM kept on talking over the top of me.  The PM ASKED ME TO CALL THE PLUMBER!!  I said no, you are managaing the property that is your job.  The PM could not confirm that we won't be charged for the excess water bill.  I'm fuming!!  From what I've found in my experience PM's don't seem to have a system where they follow up the tradesmen.  They send a fax, (1 per day usually) which is very easy to do through the "Console"software program  to the tradesmen and expect the tradesmen to call the tenants, then they forget about it until the tenant rings up to complain that the tradesman hasn't been.  By this time the tenant is not happy because it hasn't been fixed and the tenant has had to chase up the PM. Isn't a PM supposed to MANAGE the property?
–  We are being charged $1.65/month for having our rent payment direct debited from our account as they employ another company (IP Payments) to look after the payment schdules.  As a Property Investor I have been charged bank transaction fees for processing money.  So the PM collects their commission, collects money from the tenant so that they can employ a company to manage their fees and also charge the Property owner a bank transaction fee.  The PM is not managing the payments either!
– About 6 months ago I had a tenant in arrears, they owe me $800.  My PM informed me that I had to pay $100 for them to organise a debt collector.  So the PM dosn't manage this either!!  I have insurance with Terri Scheer but it fell outside their obligation to pay.

PM's don't manage repairs, payments, inspections, debt collecting and their is an extra charge if you need them to go to court.  Apart from their commission cheque what do they manage??

bfree2live

Got a live situation at the moment, I notice we didn't receive rent this month (was meant to be paid on the 12th, and in our nominated account on the 14th, or the disbursements happen on the 14th anyway)…made contact with our PM on Friday, as we set up in our clause that we are to be notified within 72 hours if the tenant has not paid rent for the month.

The first conversation between us and the PM said that the tenant has made payment for the month, but they've changed the disbursements to landlords to the 20th of the month – had we been given prior knowledge? No. Does this take into account that the I/O payment on my loan comes out on the 18th of every month? No.

Get a second call from PM an hour later saying that they'd made a mistake, they were thinking of another tenant on the same street, and ours hadn't paid yet, thereby making them 3 days late. Phone calls, SMSs and usual forms of communication have gone unanswered so far.

What concerns me is that if we were waiting until the 20th for them to do disbursements, the PM wouldn't have realised until the tenant was 8 days overdue on rental payments.

Am I over-reacting? Am I nit-picking?

gronk007

No, I don't think that you are over reacting.  I have no idea what PM's actually manage anymore??  I am considering doing my own Property Management.  Have you considered doing it yourself?

Hi Gronk007.
Suggestions.
If the rental property is not far away, you could do a night time driveby and see if the lights are on and any cars there.

Ring the property, oops sorry wrong number.

Ensure that the Property Manager sends a warning letter every 3 days after the tenant is 3 days overdue, plus phone calls and then issues a termination notice on the first day that the law allows in NSW Qld or Vic or wherever your property is located. 

Your property manager sounds inept, stay on their case and ask for an immediate copy of every letter until arrears are paid up. Ring the PM every 3 days for an update  until you are satisfied they are working properly.

If the PM is slack or inept, there will be more rent arrears. 

Good luck
cheers
thecrest 

Hey,
i have been renting for the last 8 or 9 years. and have rented in 6-7 properties over that time.

I have learnt a LOT about being a tenant, finding rental properties, and just how good/bad real estate agencies are….

Just in case you were all wondering, If i want a property to rent… i don’t check realestate.com.au… in fact, none of my housemates do either. we all started renting this property either via the university accommodation website, gumtree.com.au and easyroommate.com.

We have a range of people who have lived here, accountants, teachers, students, web designers, and many more. and they all found this place using these websites. there has not been a vacancy in this house for many many years. replacement tenants can normally be found within a day or two.

Hope some of this can help you all with your vacancies.

It's a pretty good area I'm in at the moment…I have to wait the proper period and all that as well…..I don't expect too many dramas with filling it, but thanks for the additional websites!

Received a phone call today to tell me that my tenant has done a runner leaving a water bill of ove4r $150 and owing over $900. When i asked how long it had been since the tenant had paid rent i was told "they haven't been in since 29 SEPTEMBER!' When i questioned why they had not followed up on the rental arrears before now they could give no reasonable reason.In fact they agve no reason other than to say 'Well you've got LANDLORD Insurance!" I was ropable, what am i paying these people for. Then i asked what condition the house was left in. "i don't know i've only done a drive past" When asked when new tenants could be expected to be in place "I don't know"

To be fair this person ahs been at the agency only five or six weeks, but the whole agency ahve been hopeless from day one. Unfortunately i have sent emails to other agencies asking if they do property managment, not a single agency replied. So it seems that there are no decent agencies in the town.

Should i just cut my losses and sell the property to put the money to use in another town with a competetnt property manager?

PS It has taken this agency two and a half years to get some window winders installed and nearly two years to get a shower curtain rail installed.

Very UNIMPRESSED

G'day Sonyasal

Should have a crack at renting out yourself, sounds like you could definatly do a better job, and you keep the fee's.

Property manager is Elders Real estate forbes nsw.

I was livid today when i spoke to the new 'property manager' she was very non commital and didn't appear to think it was 'such a big deal' that the tenant had left and the fact that it appears to have been quite a while ago.

What really irks me is that people seem to think that if you have an investment property you must be loaded. They don't even consider that you migght have a mortgage on the property or that you are just trying to get ahead.

making enquiries regarding getting a new pm or selling the property and buying elsewhere

 One of my tenants vacated in arrears ($950) and my PM advised me that I could employ a debt collector ($165 and they take 20% of the money recovered)  I asked what does the debt collector do that you don't do?  Her reply was that they are not debt collecting specialists!

I thought that Terri Scheer didn't pay for the first 6 weeks rent, don't know where I got that from because I read their product disclosure statement and they pay up to 15 weeks as long as there is a court order (which there is)  The PM didn't even ask me if I was insured, only gave me the debt collecting option!  I asked if the PM would complete the paperwork because there is a lot of information that only the PM knows.  She said no because she is no longer managing the property for me. (it was sold and the new owners are using the same PM)  Unbelievable I was paying her to manage the property and she should of done this way before the property was sold!  I've been waiting approximately 6 months for the money.