Every industry has it’s stand out players and shady operators, and the property management industry in Brisbane is no different. So how do you tell what category your property manager Brisbane (PM) falls into? To help you out, we’ve come up with six warning signs of bad property managers you can look out for, so you can know for sure if your PM is up to scratch.
6 Signs of Bad Property Managers
1. They’re not investors themselves
Many PM’s out there haven’t even purchased their first property, let alone know what it’s like to be a property investor. Without this unique insight, your PM can have a hard time understanding exactly what you want out of their services.
Remember, your PM is representing YOU in the eyes of the tenants. If they don’t really know what it’s like to be a landlord, they could fuss over minor details too much when they should be focusing on bigger issues that directly impact you and your investment, such as a steady rental income and property maintenance.
If you’re lucky enough to have a PM who’s also an investor, they know what it’s like to work with a PM. Because of their firsthand experience, they can perfect their service to suit and ensure you receive the level of service you should expect.
2. Repair and maintenance costs are higher than expected
While it’s important for your investment property to be well maintained and in good working order, the cost involved in keeping it that way needs to be reasonable.
Your PM should have a good idea of what standard maintenance items may cost so that if an invoice is received that seems unreasonable, the PM should query this on your behalf, and dispute the invoice if necessary. After all, they’re supposed to be working in your best interest, so if they’re not doing this, they’re simply being lazy.
Also, be wary of PMs who continually tee up any repairs or maintenance work with the same tradesman. While having key suppliers is important for PMs, so that they are able to get the best deals for their clients by maintaining good relationships with good quality tradespeople, you also want to make sure that your PM isn’t taking kickbacks for providing the tradesman with regular and ongoing work.
3. Not conducting regular inspections
Are you receiving regular updates on the condition of your property each time an inspection takes place? If not, your PM is failing at their job. This isn’t something you should have to follow up on. This should be a standard task that’s simply part of the day to day job.
If regular inspections aren’t being conducted, there’s no way for your PM to tell if your property is in a good state of repair and well maintained consistently. If you ignore this issue for too long, you run the risk of your property falling into a worse state of disrepair than you realised, ultimately devaluing your property and reducing the amount of rent you could gain.
4. Few repairs
Has your property had any major and expensive repairs done recently? Would the repairs have been smaller and cheaper if the problem was spotted earlier? This is a tell-tale sign of bad property mangers.
When a tenant requests repairs, the PM should act on them quickly before they fester into bigger and more expensive problems. Even if the tenant hasn’t pointed out any concerns, the PM should be actively looking for any repair work during inspections. If inspections aren’t thorough enough and repairs are getting missed, they could become bigger and more expensive problems down the track.
5. Unhappy tenants
When a good tenant is found who takes care of your property and pays the rent on time, you want to keep them around as long as possible. But if that tenant raises concerns about the PM or even decides to leave because of them, you know there’s a problem. Whether it be unreasonable expectations during inspections, lack of communication or disinterested responses to their concerns, these are all points you need to take seriously.
Being a PM isn’t just about looking after the property. It’s about maintaining a liveable home for the tenant and making them happy too. Therefore, relationship building should be a big part of the role. Your PM needs to make it their job to keep all parties satisfied with the arrangement. If the PM poorly handles any tenant issues, they risk spilling over into major disputes between the tenant and landlord. In the worst-case scenario, both parties may even face the tribunal over the matter.
A PM should act as the ultimate mediator and make sure the needs on both sides are met. They should know how to take on and acknowledge the concerns of tenants appropriately and address them in a way that’s also agreeable with you.
6. No increase in rent
Your PM should be actively reviewing your rent against current market rental rates to make sure you’re always getting the best possible return on your investment.
But the balance can be tricky here. Your PM should be making sure that your rent is high enough to maximise your returns while still being reasonable enough to compete with other rental properties in the area. Unfortunately, this isn’t a skill all PMs have, and if yours gets it right, you know you’re onto a winner.
If your PM is not sending you data and comparable rental information with their recommendation, you should ask for this to be sure their advice is well founded.
Rental Property Management in Brisbane – We Tick All the Boxes
There’s no doubt that a PM is required to wear many hats in their role, and luckily for Beyond Property Management, our Brisbane property managers wear all of them. If you’ve looked through this list and found that you might be ticking some of the boxes for bad property managers and your PM isn’t really up to scratch, make the switch to Beyond Property instead.