All Topics / General Property / What annoys you about property management?

Viewing 14 posts - 21 through 34 (of 34 total)
  • Profile photo of TaylorChangTaylorChang
    Participant
    @scha9799
    Join Date: 2009
    Post Count: 234

    I think this is the headache many investors facing.

    I really want to see there is a true proactive not overpriced property management company really stand out and help investors

    Taylor Chang

    TaylorChang | Finance Broker
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    Profile photo of Scott No MatesScott No Mates
    Participant
    @scott-no-mates
    Join Date: 2005
    Post Count: 3,856

    Ian, although your comment ‘1 property’ was a bit tongue in cheek, would you pay more for a decent PM or one who was only handling say 50 properties not the 150+? How many properties does it take to get say a $3m rent roll which at full comms is slim on margins for the agency?

    Does quality property mgmnt come at a cost/price? Should it be reflected in the fees? Should it be on-charged for every bit of service provided (like solicitor/accountants) ie fee for service – pm/arrangement of & % of maintainence/outgoings/property inspections/reports/lease prep/outgoing inspections etc?

    Profile photo of bjsaustbjsaust
    Participant
    @bjsaust
    Join Date: 2009
    Post Count: 141

    Wow, I read threads like this, and I'm so happy I accidentally stumbled onto a great manager. Great communication (both ways) regular inspections, verbal catchup after each inspection with a following written report. Advice if I ask for it. Happy to put rents up. Vets potential tenants and presents top few for us to choose from. As far as I can tell she's also responsive to the tenants so they should be happy. Did have one issue with a tradie she was using, but I addressed that with her and she took it on board.

    So I guess I'd echo what others have said here, but from the opposite perspective. What I like about good property management is all the things people here have said annoys them if its not done, being done well. I just need to trust I'm going to hear what I need to hear in a timely fashion, that my wishes will be listened to and acted on, and that the PM is actively working for my benefit.

    Profile photo of grantos_champosgrantos_champos
    Member
    @grantos_champos
    Join Date: 2009
    Post Count: 106

    There is a good article in the Nov 2011 YIP magazine page 54, "how to whip your property manager into shape"

    Profile photo of SezSez
    Member
    @sez
    Join Date: 2011
    Post Count: 26

    Just in regards to how many properties a property manager can manage (sounds like a tongue twister), this varies depending on the area you manage in. I'm based in Carrum Downs, near Frankston in VIC. In and around Frankston I think that for a property manager to do a truely excellent job they shouldn't have more than 130 properties to manage on their own. Often though in this area they have closer to 250 properties to manage, it is an area which attracts a lower rent than closer to the city, lower management fees to compete with the 20 other real estate agencies on the block and so the companies can not afford to hire enough property managers to ensure the job is well done. When you move closer to the city and work in an area with higher rents that attracts a higher quality tenant / landlord, the amount of properties that can be managed well goes up (I previously worked in Mentone and so experienced this first hand).

    In essence, this question is somewhat like, how long is a piece of string?? :)

    Profile photo of ummesterummester
    Member
    @ummester
    Join Date: 2008
    Post Count: 510
    sapphire101 wrote:
    Just remember, being a landlord ain't easy. You have to manage the manager and it's very proactive when they don't get things right.

    So why not just manage it yourself? Save money and get things done the way you like.

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069
    ummester wrote:
    sapphire101 wrote:
    Just remember, being a landlord ain't easy. You have to manage the manager and it's very proactive when they don't get things right.

    So why not just manage it yourself? Save money and get things done the way you like.

    Totally agree – that's the main reason we started doing it ourselves.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
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    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of Andrew_AAndrew_A
    Participant
    @andrew_a
    Join Date: 2003
    Post Count: 392

    Skye, Interesting topic. I think property management should be really simple if done properly and what causes a majority of the problems is the economics of the industry.

    Because management tends to be an add on to sales in a lot of agencies and because it doesn’t scale that well (one manager can manage X number of properties but you will need to employ more people to grow that number substantially) the pressures to employ junior and inexperienced workers is strong, also there is pressure for skilled people to move into areas of higher pay such as sales. There are plenty of more economic reasons I could list but the whole point is that there is a lot of incentive to load up as many properties as possible on staff and this makes it very difficult to do a good job.

    For me the main reasons there is frustration is that the big rocks, the very important tasks aren’t taken care of properly such as:

    * Tenant checking > Doing the most basic checking on tenant histories to ensure you are getting quality tenants, do this right and everything else can flow well.
    * Proactive management > Sorting out lease changeovers a few months in advance to allow for no vacancies and to find quality new tenants by having opens mid week and the like.
    * Proper pricing and marketing of for lease properties
    * Constant communication > Between both owners and tenants

    There are some good managers out there so don’t be afraid to go looking and change managers if necessary.

    Profile photo of thecrestthecrest
    Participant
    @thecrest
    Join Date: 2004
    Post Count: 992

    Requirements for a good PM dept.
    Property management is a people business.
    Success requires quality and quantity.

    1. QUANTITY – SUFFICIENT STAFF.
    It doesn’t matter how willing, able or professional staff might be, without sufficient staff to handle the workload then everything suffers – staff burnout n turnover, work not done, work quality declines, customer service declines, downward spiral, it’s only a matter of time.
    2. QUALITY – PROFESSIONAL STAFF.
    Property management is challenging, without professional staff with the right attitude it becomes a big drama every day.
    With professional staff, it is profitable in itself, supports the Agency sales dept in lean times, and provides sales listings on a plate.
    PMs take a big load off landlords’ shoulders.

    If an agency is – adequately staffed, and the PM under-performs, then the PM is not professional.
    If the agency is not adequately staffed, then the PM under-performs, then the service is not professional.
    It’s not rocket science.

    Anything else is just detail, because if an Agency has sufficient professional staff, the job gets done properly,
    and everyone’s happy. Did my hard yards as a PM, once was enough for me.

    Cheers
    thecrest

    thecrest | Tony Neale - Statewide Motel Brokers
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    selling motels in NSW

    Profile photo of TayloredPropertyTayloredProperty
    Member
    @tayloredproperty
    Join Date: 2005
    Post Count: 14

    OHMYGOODNESS!!!!

    I am just overwhelmed by all of these comments, thank you so much everyone for putting in such great responses, this is such a big help to my business, and it certainly seems as if a common thread is developing here…

    I am also pleased, as it seems that the things that have annoyed you, I already have systems in place in my business to overcome these, so we must be doing something right!

    To answer one of the questions about how many properties should one person be responsible for? Well average across Australia, would probably be somewhere between 100-200.
    200 is WAY too many, and 100 is just enough. Even at 100 this is the absolute most I consider to be doable, but it has to be in a business that has good systems and processes. If the business is not functioning well as a whole, then 100 can quite easily be too many.
    They have to have support of a receptionist too, just to help field calls, as tenant enquiry can quickly overload an already stressed manager.

    Unfortunately the problem is that 90% of property managers out there are overworked and extremely underpaid. I dont blame them for doing a bad job, it really isnt their fault. Its their bosses that need to realize they are making a huge mistake, but I wont be telling them that! The worse they are, more business for me!
    Also, I started the property management business as a specialist company, as I firmly believe you cannot do both well. A real estate sales business is extremely different to a property management business.

    So for you investors out there, I have some tips for you!
    1. Stick with specialists, less chance youll get forgotten as there is no hungry principals chasing commission cheques, and forgetting about your property
    2. Cheaper is never better. Good value yes, but cheapest will always end up costing you more… Its your biggest asset!
    3. Most important rule, find someone who does what they say they will. One who doesnt over promise and under deliver, less chance of you having to 'manage' your property manager if they do what they promise.

    If you ever have any questions about property management, feel free to ask away, so I can begin to pay forward all this lovely help youve all given me! Thank you so much everyone, you have no idea how fabulous this is!

    Remember, it is far better to aim high and fail than to aim low and achieve!

    Profile photo of mattstamattsta
    Participant
    @mattsta
    Join Date: 2011
    Post Count: 604

    In my opinion, my biggest annoyances with some property managers is the lack of communication

    You mentioned these points:
    *property managers never phone back
    *emails are never responded to, or if they are, its days and days later

    And it's those ones that annoy me the most…

    Profile photo of Ryan McLeanRyan McLean
    Participant
    @ryan-mclean
    Join Date: 2010
    Post Count: 547

    The 110% fees for leasing the property to a new tenant. This sucks when you change tenants every 6-12 months.

    Ryan McLean
    Free eBook "How To Find Positive Cash Flow Property"
    http://cashflowinvestor.com.au

    Ryan McLean | On Property
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    Profile photo of Scott No MatesScott No Mates
    Participant
    @scott-no-mates
    Join Date: 2005
    Post Count: 3,856
    ryan mclean wrote:
    The 110% fees for leasing the property to a new tenant. This sucks when you change tenants every 6-12 months.

    Ryan McLean

    Why are you turning over tenants every 6-12 months? That is something you can address – are there issues with the property/lack of response to maintenance issues or with the property manager?

    Profile photo of thecrestthecrest
    Participant
    @thecrest
    Join Date: 2004
    Post Count: 992

    3-4 months of rent commission equals the relet fee. Even a month or 2 of vacancy before a relet is more profitable for a REA than full time occupancy. Crunch the numbers yourself on one of your own properties and see how long it takes the REA to earn the equivalent amount of relet fees in commission.

    BTW – I should’ve mentioned in my post that the single most prevalent annoying damaging shortcoming of PMs and staff is definately poor communication – not enough feedback to property owners or none at all.

    2nd place should go to PMs poor decisions – due to either lack of knowledge or poor attitude.
    3 rd place is No.1 again, either buck passing, the mushroom deal or dead silence, because they don’t want you to know about No.2.

    Try to find a PM where it’s a clean rent roll, not full of lousy properties which attract problematic tenants – that PM will be too busy trying to deal with dubious tenants who also resent paying rent for poorly maintained properties, and landlords who resent spending money.
    Also look for a low number of properties per staff member, as close to 100 as possible, depending on the quality. Remember, in terms of a PMs workload, 100 lousy properties is like 300 good ones. Taking it to the extreme to make the example easy to understand, – If your PM is handling heaps of properties for “slumlords” in a severely socio-economically challenged geographical area, don’t expect the PM to have much time to look after your property.

    Good luck
    Cheers
    thecrest

    thecrest | Tony Neale - Statewide Motel Brokers
    http://www.statewidemotelbrokers.com.au
    Email Me | Phone Me

    selling motels in NSW

Viewing 14 posts - 21 through 34 (of 34 total)

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