When your investment property is tenanted well and taken care of, it makes you money. But if you have bad property management, it can cost you thousands. After all, while your investment property is someone’s home – it’s still a vehicle for earning you income so you need to treat it like you would any other investment: with attention to detail and care. Attention to detail means choosing a great property manager (PM) who cares for your property as much as you do, and making sure that you are vigilant if something isn’t good enough.
After all, when you work with bad property management companies, losing money for lousy service is just the start of your troubles; and even more worrying is the potential negative impact that it can have on your property investment! This is an impact that could cost you a lot of money in the long run if you don’t do anything about it.
How can Bad Property Management Companies Affect your Investment
- Low-Quality Tenants– Every tenant is different, and not every applicant will be a good match for your property. Most average (bad) PM 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 Return on Investment (ROI) – 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 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 PMs can hold back your investment’s bottom line.
- Deterioration of your Property– When you work with bad property management companies there’s no guarantee that they’ll look after your property like it’s their own. Bad 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 – Bad property management companies 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 You Have Bad Property Management
If you experience the following from your property management company, 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 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 PM 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 PMs aren’t doing their job as well as they should.
- Lack of inspections.Infrequent inspections (if any) show that your manager may not care about your property as much as you do.
Work with the Right People
With so many rental property management companies out there, many investors think that they can simply pick one from the lot and start getting great returns.
What many don’t realise, however, is that not every manager can get you the same returns on your investment. In fact, bad property management 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 to handle your investment. Beyond Property we are committed to minimising your risks and maximising returns. We do this by:
- Keeping you informed about your property with regular inspections, updates, information, and financial reports.
- Marketing and advertising your property appropriately for the market, area, and time of year to ensure you get the best possible rate and superior tenants for your investment.
- Paying rent on time, and taking care of the collections process on your behalf.
When it comes to your rental or investment property we want to take care of everything on your behalf, leaving you free to focus on more important things. After all – we are committed to delivering added value and exceptional results for every person we interact with, whether they are a tenant, a landlord, a prospective client, or a commercial property owner. Everyone is treated with respect and courtesy for every interaction.
Want to learn more about the value you could be recovering for your investment property? Get a free rental appraisal and find out if you are getting what you deserve with your rent.