When you work with the wrong property managers, losing money for lousy service is just the start of your troubles.
Even more worrying is the potential negative impact that it can have on your property investment – an impact that could cost you a lot of money in the long run if you don’t do anything about it.
Here are some of the most damaging ways that the wrong property manager can affect your investment:
- Low-Quality Tenants – Every tenant is different, and not every applicant will be a good match for your property. Most bad property managers focus only on filling your property with a tenant and then calling it a day. But the good ones will actually work to find high-quality tenants that match your property and requirements. Remember that low-quality tenants may fill your lease, but they can cost you money in the long run if they’re unreliable and end up damaging your property.
- Low ROIs – Bad property managers may get you tenants who pay their rent on time, but it’s no assurance that you’re getting the returns that you should. When you work with the wrong property manager, you’ll likely see your ROI remain stagnant over time. Whether it’s because they set rent prices that don’t reflect the current market or because they don’t take the time to ensure the proper condition of your property, bad property managers can hold back your investment’s bottom line.
- Deterioration of your Property – When you work with the wrong property manager, there’s no guarantee that they’ll look after your property like it’s their own. Bad property managers typically care only about finding tenants to fill your property, leaving the condition of your unit solely in the hands of your tenant. They also won’t be proactive when it comes to dealing with repairs or maintenance on your property, which could lead to plenty of costly damage over time. Remember that a good manager will always look after your property like it’s their own investment.
- No Support in Disputes – The wrong property manager will not be able to help you much if you encounter a dispute with a tenant or regulatory body. They may provide superficial guidance, but they’ll likely be more interested in protecting themselves than supporting your case. If this happens, you could end up with a significant dent in your finances.
How to Tell If a Property Manager Isn’t Right for You
If you experience the following from your agency, then it’s likely that they’re the wrong managers for you:
- Lack of communication. Whether it’s late reports or never getting back to your enquiries and requests for updates, you’ll often be left in the dark when working with the wrong property manager.
- Poor maintenance. If you notice that repairs and maintenance for your property are slow (or perhaps non-existent), then it could indicate that your property manager isn’t taking care of your property as they should.
- Stagnant rent rates. If your rent prices have remained the same for years, there’s a chance that your rent prices may not be reflecting the current market accurately. Of course, it’s possible that the rental market in your suburb may not be growing or that it’s struggling. But if your research of how much rent prices should be in your area don’t align with your property’s rental rates, then it could be a sign that your property managers aren’t doing their job as well as they should.
- Lack of inspections. Infrequent inspections (if any) show that your property manager may not care about your property as much as you do.
Work with the Right People
With so many property managers and rental agencies out there, many investors think that they can simply pick one from the lot and start getting returns.
What many don’t realise, however, is that not every property manager can get you the same returns on your investment. In fact, the wrong property manager will likely do more harm than good to your investment, leading to missed opportunities and costly losses over time.
If you want to ensure that you’re getting the best returns on your investment now and in the future, then you need to make sure that you have the right property managers handling your investment.
Want to learn more about getting the service you deserve for your property investment? Get in touch with our team to find out more.