Property investment continues to be an important financial asset and revenue stream for many Australian investors. Just as a stock market purchase in a well-managed Australian company has a board of directors that will ensure the best interests of shareholders are met; Your property investments too can benefit from a property manager (PM) that has your best interests in mind. Your PM should feel like an extension of yourself, treating your property investment as if it were their own and carefully managing all aspects to ensure that you get the best return on your investment.
In the current Australian economic climate, it is more important than ever to ensure that your PM is making balanced and well-thought-out decisions that take into account the needs of all parties. If you feel that your PM does not have your best interests in mind and are unhappy with the performance of your property investments, it might help to consider changing property managers. Get in touch with us at Beyond Property Management for a PM that is passionate about your property, adds value, and delivers results.
Why Consider Changing Property Managers?
Do you feel that your property portfolio is not being managed as well as it should? Is your PM not following proper compliance procedures regarding tenancy agreements? Are you noticing a lower than market average return on your investment? Bad property management might be the cause; The financial and hidden costs associated with a poorly performing PM can have a drastic impact on your property investment. We take a look at a few of the different reasons why a property investor or landlord might consider changing property management companies if they are finding their PM is not up to scratch.
Reasons for Changing Property Management Companies
- Tenancy Issues – If your property is being mismanaged, one of the clearest signs can be that you are continuing to have tenancy issues. Does your property suffer from prolonged time on the market? Is an unproportionate amount of expenditure being used for advertising to secure new tenants? Are your tenants constantly leaving? Are bad-quality tenants accelerating the deterioration of your property? Ensuring the quality of your tenants and that your investment continues to provide the best possible returns is a fundamental part of how your PM should be taking care of your property portfolio.
- Deteriorating Property – If your property is deteriorating faster than it should, it could be a sign that your PM has been neglecting inspections and not being proactive about the management of your property. In many cases, the cost of repairs can be significantly cheaper if problems were spotted earlier than waiting until it was too late. A well-maintained property is one that tenants want and love to live in, ensuring your revenue streams continue.
- Stagnant Rents & Low Returns on Investment – Your PM should be regularly assessing the current rental market ensuring that rental rates for your property are accurately aligned with the market rates in your area. Stagnant rates and poor maintenance of your property are two common reasons a property investor might consider changing property managers.
- Dispute Mismanagement – Every PM can do a satisfactory job when the times are good. However, as a property investor, how your PM handles the tenancy of your property during difficult times, can provide a clear indication of if your PM has your best interests in mind. Whether your tenants have come into financial difficulty for medical reasons, job losses, or if you are going through bond disputes at the end of the lease; Your PM needs to carefully consider disputes and ensure that resolutions are always managed appropriately.
- Poor Communication – Poor or lack of communication can leave a property investor in the dark about potential issues that might arise. Whether your PM is hard to get in touch with on the phone, by email, consistently sending late reports, or not actioning requests in a timely manner; A good PM ensures open communication between the landlord, the tenant, and the property management company so that you are always provided up-to-date and accurate information regarding your investment.
- Compliance Issues – An important aspect of any PM’s responsibility is to ensure your investments meet and/or exceed the standards of compliance required by regulatory agencies. If your properties are being issued warnings or worse, penalised for non-compliance, this is a sure sign that it may be time to consider changing property management companies.
Making the choice to change your PM or bring onboard a PM for the first time can make a world of difference when it comes to how your properties are managed and ultimately the return on investment you make. A reoccurring question often asked by real estate investors is ‘How to find the right property manager?’.
Finding the Right PM for You
Finding the right PM is one of the most important parts of being a property investor. A good PM will be proactive in the management of your property and always ensure that your financial investment is looked after with the dedication, care, and respect it deserves. It’s easy to get allured by the big promises and savvy marketing techniques that many property management agencies use. It’s important to look past the marketing distractions and focus on the qualities of a good PM that will work with you to safeguard your investment.
Qualities of a Good PM
- Experience –The right PM is one that has more than just years of experience. Your PM should demonstrate a history of good returns, management of property portfolios, the skills necessary to deal with tenancy issues when they arise, and the ability to find high-quality tenants.
- People-Orientated – Finding the right quality tenants to take care of and rent your properties requires great people skills. Your PM needs to ensure that all parties involved feel like they are being well taken care of. Negotiation and interpersonal skills all work towards securing high-quality tenancies for your properties.
- Accountable and Organised – Regulatory compliance, rental agreements, dispute resolution and vendor relationships all require your PM to be accountable. Transparency and attention to detail through all facets of your property management from initially finding a tenant, to the proactive maintenance of your property ensures that your investment is being well looked after.
- Responsiveness – Finding a PM that takes the time to not only answer the concerns and requests from you as the landlord but also your tenants as well, goes a long way to ensuring happy tenants, and long-term returns.
Procedures for Changing Property Managers
It is a common misconception that changing property management companies is a difficult and time-consuming process. In fact, the process to change your PM can mostly be completed by your new PM who can fill out most of the paperwork on your behalf. Changing your PM usually follows these four steps;
- Give notice to your current PM – As the property owner you will need to give written notice to your existing PM that you wish to cease your property management agreement. This can be done via a simple e-mail with your new PM cc’d. Your new PM will be able to take care of any legalities and fine print saving you the time and potential headaches.
- Sign on with your new PM – Your new PM will send through a ‘property agent appointment’ form that will need to be completed before they can act on your behalf. Once completed they will take care of transferring all relevant documentation over from your existing PM by an agreed-upon date.
- Inform current tenant/s – If your property is currently tenanted, your new PM will contact the tenant/s in writing to inform them of the impending change of property management. Your new PM will provide the necessary information regarding how to pay rent, procedures for repairs and maintenance and the best methods of communication.
- Official Handover – At the agreed-upon date your new PM will pick up the keys and important documents from your existing PM. Finally, the first inspection at the property will be scheduled to confirm the current state of the property and address any issues or concerns from the current tenants regarding the property.
Beyond Property Management Your PM
At Beyond Property Management we are property investors ourselves – we value and understand your priorities and ensure that your investment and subsequently your financial assets are well taken care of. As your PM we take a proactive approach to the management of your property to ensure that we are constantly adding value and maximising your returns. By choosing the right PM, you ensure that you are putting your property in safe hands, knowing that your properties will always be treated as if they were our own.
Unhappy with how your property investments are currently being looked after and are considering changing property managers? Or are you looking at purchasing your first investment property and would like to know ‘What are the benefits of using a property management company?’ At Beyond Property Management we will go above and beyond to ensure that we consistently add value and you get results. Get in touch with a PM today for a free rent appraisal.
**For important announcements regarding Covid-19 and the RTRA act and how this might be affecting your tenants and property portfolio please read our recent RTRA announcement here.