10 Things to Avoid When Choosing a PM
When selecting a property manager it’s important to make an informed choice.
Here we share the top 10 items to consider when handing over your financial future.
1. Cost V's Service
A good property manager will earn you money on your investment, while a bad one will cost you dearly. Engaging a good property manager is priceless. It may be worth paying a little more for a manager doing an outstanding job, rather than below value for one not worth anything.
2. Bad Communication
Lack of communication can cause major issues, including situations escalating to litigation before you are aware. Communication is important on all aspects of management from maintenance concerns to tenant selection processes. A simple concern like a faulty window lock can lead to major insurance costs. It pays to have Landlord Insurance in place for added protection.
3. Sloppy Service
You shouldn’t have to manage your manager. Particularly once your portfolio grows, it is not possible to constantly assess rental statements – that’s what you pay the manager for. The property manager should ensure rents are on time and take action when they are not. You should not have to step in and manage on your agent’s behalf.
There have been occasions of dodgy property managers dipping into trust accounts. You must have trust in the people managing your property – if it doesn’t feel right, it probably isn’t.
5. Earning Their Fee's
Property managers should be completing regular inspections to avoid major issues developing. As discussed already, communication of these inspections and any items discovered is a basic requirement of good property management.
6. Licensed & Qualified
Always ensure any agent you engage has the required licensing and certification and is a member of relevant industry bodies, such as the Real Estate Institute of Australia. Also ensure their staff are trained and qualified to a satisfactory standard.
7. Market Awareness
Always ensure property rents are up-to-date with current rental market value. Good property managers will conduct regular market rental reviews and ensure the ‘right’ tenants for your property.
8. Poor Advertising
There are still some property managers with no website and no active advertising – this should set off alarm bells. Most decent property managers engage websites like realestate.com.au as a minimum. If they’re not, you need to ask yourself why they’re not spending the money to be a part of a significant lead generator for your property.
9. Where Do Their Loyalties Lie?
Is the Property Manager working on behalf of the landlord or the tenant? A good property manager must always have the interests of the landlord at heart.
10. The Right Advice
Overall, your property manager is responsible for ensuring the best possible rental return for your investment, so it is important they are able to provide the best advice for your property.