All Topics / Opinionated! / “property managers” too busy to manage properties!

Viewing 20 posts - 41 through 60 (of 69 total)
  • Profile photo of Yuppy Hippy 101Yuppy Hippy 101
    Member
    @yuppy-hippy-101
    Join Date: 2004
    Post Count: 44

    In 17 years I have had 12 investment properties and I still havn't found a PM that I am totally happy with. 

    We are currently building and renting a place and now I am experiencing what it is like to be a tenant.  I'm now even more disillusioned about what a PM actually manages.  I am currently in the process of getting my real estate licence as I am very passionate about the poor quality service delivered by PM's and I would like to improve the service currently being offered.

    We have been in our rental property for 1 year now and these are the things that disappoint me:

    – PM still hasn't inspected the premises, we could of caused significant damage by now.
    – We rang two weeks ago about a repair (first time we have asked for anything) which is a leaking hot water system.  It is outside and streaming out.  I live in Toowoomba and water is very precious here, alot of water has been wasted.  I rang for the third time today, had to raise my voice because the PM kept on talking over the top of me.  The PM ASKED ME TO CALL THE PLUMBER!!  I said no, you are managaing the property that is your job.  The PM could not confirm that we won't be charged for the excess water bill.  I'm fuming!!  From what I've found in my experience PM's don't seem to have a system where they follow up the tradesmen.  They send a fax, (1 per day usually) which is very easy to do through the "Console"software program  to the tradesmen and expect the tradesmen to call the tenants, then they forget about it until the tenant rings up to complain that the tradesman hasn't been.  By this time the tenant is not happy because it hasn't been fixed and the tenant has had to chase up the PM. Isn't a PM supposed to MANAGE the property?
    –  We are being charged $1.65/month for having our rent payment direct debited from our account as they employ another company (IP Payments) to look after the payment schdules.  As a Property Investor I have been charged bank transaction fees for processing money.  So the PM collects their commission, collects money from the tenant so that they can employ a company to manage their fees and also charge the Property owner a bank transaction fee.  The PM is not managing the payments either!
    – About 6 months ago I had a tenant in arrears, they owe me $800.  My PM informed me that I had to pay $100 for them to organise a debt collector.  So the PM dosn't manage this either!!  I have insurance with Terri Scheer but it fell outside their obligation to pay.

    PM's don't manage repairs, payments, inspections, debt collecting and their is an extra charge if you need them to go to court.  Apart from their commission cheque what do they manage??

    bfree2live

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    Its strange that agents don't care about property management. They seem to think it is the sales side that matters, but it is the management side that brings in long term passive income. As they build up a list of properties being managed they can then sell this loan book to other agents. The going rate is about 2.5times the annual income collected.

    Say the agent managed 100 properties and the rent was $300 pw on average and their fee 8%. That is an annual fee to the agent of $124,800. They could sell this rent book for about $300,000 (and you can even get finance for this sort of purchase).

    Nothing to be sneezed at!

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of gronk007gronk007
    Member
    @gronk007
    Join Date: 2005
    Post Count: 54

    Got a live situation at the moment, I notice we didn't receive rent this month (was meant to be paid on the 12th, and in our nominated account on the 14th, or the disbursements happen on the 14th anyway)…made contact with our PM on Friday, as we set up in our clause that we are to be notified within 72 hours if the tenant has not paid rent for the month.

    The first conversation between us and the PM said that the tenant has made payment for the month, but they've changed the disbursements to landlords to the 20th of the month – had we been given prior knowledge? No. Does this take into account that the I/O payment on my loan comes out on the 18th of every month? No.

    Get a second call from PM an hour later saying that they'd made a mistake, they were thinking of another tenant on the same street, and ours hadn't paid yet, thereby making them 3 days late. Phone calls, SMSs and usual forms of communication have gone unanswered so far.

    What concerns me is that if we were waiting until the 20th for them to do disbursements, the PM wouldn't have realised until the tenant was 8 days overdue on rental payments.

    Am I over-reacting? Am I nit-picking?

    Profile photo of grimnargrimnar
    Participant
    @grimnar
    Join Date: 2010
    Post Count: 86
    gronk007 wrote:

    Am I over-reacting? Am I nit-picking?

    I don't think so… It's a fairly simple matter figuring out who has paid and who has not. Particularly given the fact that many property managers are no longer responsible for rent collection. They have outsourced that function to specialist collection agencies who simply 'direct debit' tenants accounts.

    Theoretically, this should free up more time and resources to focus on more pressing matters… like facebook.

    But again, I don't think this is unreasonable. Late rent is critical information for all clients whom, depending on the way they manage their funds, may in fact be reliant on the rent coming in on-time to pay the mortgage or other expenses. 

    Prior warning can change a property investors reactions to the situation, saving dishonour fees or reallocating funds, buying baked beans instead of lamb shanks, etc. In turn, early warning can strengthen the relationship between investor and property manager.

    This is also an indicator to go around and check that the tenants are still residing in place… wouldn't be the first time a tenant has done a runner.

    This happened to my parents a number of years ago. The tenants had been behind in rent for a month, and despite repeated attempts to contact the property manager, my parents could make no contact to find out what was going on. Eventually it was the old lady that lived over the street (we used to live in the house) who called up and said she thought the tenants had bolted.

    Turns out they had. We got up there as quickly as we could, but they were already weeks behind in rent and had trashed the house utterly on leaving…. There was holes in all doors and a few walls, and they had slashed every flyscreen in the house, drained sump oil in the garage, pulled apart engine bits on the upstairs carpet, smashed every 3rd tile in the bathroom (with some precision! now that takes patience!!), pulled cieling fans out of the roof, and stole every light bulb in the house…. including the little one from the oven.

    The agent was completely oblivious to the situation… which is not really surprising…

    But the REALLY shocking part, is that the tenants turned up at the office and handed in the keys mid lease…. The agent must have thought it was expired, because they gave them back their bond without so much as checking contract, the rent situation, or inspecting the property.

    I was pretty young at the time, but that has stuck with me. The last place I rented out I handled it myself, and it was incredibly easy!!

    Profile photo of Yuppy Hippy 101Yuppy Hippy 101
    Member
    @yuppy-hippy-101
    Join Date: 2004
    Post Count: 44

    gronk007

    No, I don't think that you are over reacting.  I have no idea what PM's actually manage anymore??  I am considering doing my own Property Management.  Have you considered doing it yourself?

    Profile photo of gronk007gronk007
    Member
    @gronk007
    Join Date: 2005
    Post Count: 54

    As far as doing it myself, I'm still a newbie at this, and working 60 hours a week in my "real" job is taking alot of time.

    It's the things I don't know about yet that will bite me in the proverbial……

    I want to go to the site myself, and look around, but I've been told it's technically "trespassing", and if caught, will only prolong the proceedings we are about to embark upon.

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

    Hi Gronk007.
    Suggestions.
    If the rental property is not far away, you could do a night time driveby and see if the lights are on and any cars there.

    Ring the property, oops sorry wrong number.

    Ensure that the Property Manager sends a warning letter every 3 days after the tenant is 3 days overdue, plus phone calls and then issues a termination notice on the first day that the law allows in NSW Qld or Vic or wherever your property is located. 

    Your property manager sounds inept, stay on their case and ask for an immediate copy of every letter until arrears are paid up. Ring the PM every 3 days for an update  until you are satisfied they are working properly.

    If the PM is slack or inept, there will be more rent arrears. 

    Good luck
    cheers
    thecrest 

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

    selling motels in NSW

    Profile photo of gronk007gronk007
    Member
    @gronk007
    Join Date: 2005
    Post Count: 54

    Looks like the place is empty…there's a water canal behind the backyard that let me have a quick peek…despite claims to the contrary that one of them instead of 2 of them, are still living there. No-ones seen a car there for a while now.

    To my knowledge, there is no landline there….we didn't have one when we lived there…

    Shame…..every month prior to this they'd paid early…but according to the PM they broke up with each other last week…

    Care factor? Zero, just collect my rent!!!! Letter of breach being sent out in 7 days, VCAT application 3 days later…

    Profile photo of illuminatiilluminati
    Member
    @illuminati
    Join Date: 2006
    Post Count: 81

    Hey,
    i have been renting for the last 8 or 9 years. and have rented in 6-7 properties over that time.

    I have learnt a LOT about being a tenant, finding rental properties, and just how good/bad real estate agencies are….

    Just in case you were all wondering, If i want a property to rent… i don’t check realestate.com.au… in fact, none of my housemates do either. we all started renting this property either via the university accommodation website, gumtree.com.au and easyroommate.com.

    We have a range of people who have lived here, accountants, teachers, students, web designers, and many more. and they all found this place using these websites. there has not been a vacancy in this house for many many years. replacement tenants can normally be found within a day or two.

    Hope some of this can help you all with your vacancies.

    Profile photo of lbluedentolbluedento
    Participant
    @lbluedento
    Join Date: 2009
    Post Count: 98

    Don’t get me started on renting. We have 3 IPs and we are also rental tenants. Firstly tenants are made to feel like second class citizens. When we have had to request repairs we have been told “I shouldn’t think they’d agree to that” this regarding a leaking tap that was damaging a bathroom cupboard in a 4 yr old house. The PM didn’t even discuss presenting the issue to the owner. Luckily for the owner we fixed it. I am sure if we didn’t it would have been like the TV aerial – which took us 4 mths to get. I am confident our IP PM is more competent than this – that better be as I sure pay them to be!

    Profile photo of gronk007gronk007
    Member
    @gronk007
    Join Date: 2005
    Post Count: 54

    It's a pretty good area I'm in at the moment…I have to wait the proper period and all that as well…..I don't expect too many dramas with filling it, but thanks for the additional websites!

    Profile photo of gronk007gronk007
    Member
    @gronk007
    Join Date: 2005
    Post Count: 54

    believe it or not, the rent has been paid….an inspection has been booked by the PM for a week…..

    Fingers crossed

    Profile photo of sonyasalsonyasal
    Member
    @sonyasal
    Join Date: 2008
    Post Count: 421

    Received a phone call today to tell me that my tenant has done a runner leaving a water bill of ove4r $150 and owing over $900. When i asked how long it had been since the tenant had paid rent i was told "they haven't been in since 29 SEPTEMBER!' When i questioned why they had not followed up on the rental arrears before now they could give no reasonable reason.In fact they agve no reason other than to say 'Well you've got LANDLORD Insurance!" I was ropable, what am i paying these people for. Then i asked what condition the house was left in. "i don't know i've only done a drive past" When asked when new tenants could be expected to be in place "I don't know"

    To be fair this person ahs been at the agency only five or six weeks, but the whole agency ahve been hopeless from day one. Unfortunately i have sent emails to other agencies asking if they do property managment, not a single agency replied. So it seems that there are no decent agencies in the town.

    Should i just cut my losses and sell the property to put the money to use in another town with a competetnt property manager?

    PS It has taken this agency two and a half years to get some window winders installed and nearly two years to get a shower curtain rail installed.

    Very UNIMPRESSED

    Profile photo of reggie5005reggie5005
    Member
    @reggie5005
    Join Date: 2010
    Post Count: 28

    Reading all these stories I think we need to have a name and shame section on this forum. Maybe if agents realise that if they perform poorly there bad name will there for everyone to see, and the same goes for good agents, somewhere people can read honest feedback about agents good or bad, state by state. Real estate agents have a black list for bad tenants maybe we need one for agents as well.

    Profile photo of reggie5005reggie5005
    Member
    @reggie5005
    Join Date: 2010
    Post Count: 28

    G'day Sonyasal

    Should have a crack at renting out yourself, sounds like you could definatly do a better job, and you keep the fee's.

    Profile photo of gronk007gronk007
    Member
    @gronk007
    Join Date: 2005
    Post Count: 54

    Sonysal…who's the Property Manager? That is a disgrace.

    Landlord Insurance doesn't cover non-payment of rent does it? Just Accidental and Malicious damage???

    Profile photo of sonyasalsonyasal
    Member
    @sonyasal
    Join Date: 2008
    Post Count: 421

    Property manager is Elders Real estate forbes nsw.

    I was livid today when i spoke to the new 'property manager' she was very non commital and didn't appear to think it was 'such a big deal' that the tenant had left and the fact that it appears to have been quite a while ago.

    What really irks me is that people seem to think that if you have an investment property you must be loaded. They don't even consider that you migght have a mortgage on the property or that you are just trying to get ahead.

    making enquiries regarding getting a new pm or selling the property and buying elsewhere

    Profile photo of DWolfeDWolfe
    Participant
    @dwolfe
    Join Date: 2009
    Post Count: 1,253

    Hi Sonyasal,

    Sorry to hear about the absolutely s%^thouse managers.

    One of our good managers knew there was a problem with one of ours and went and collected the rent every week. She hadn't heard from the tenant for a while, chased them, found they had moved into a new apartment in Melbourne, chased the dad in India to pay the money owing (bout $1200, months rent) and remove all the furniture that she had just walked away from.

    There is no excuse for bad property management. It's your dollars and managers just don't respect that.

    Have you been through the inside yet?

    D

    DWolfe | www.homestagers.com.au
    http://www.homestagers.com.au
    Email Me

    Profile photo of Yuppy Hippy 101Yuppy Hippy 101
    Member
    @yuppy-hippy-101
    Join Date: 2004
    Post Count: 44

     One of my tenants vacated in arrears ($950) and my PM advised me that I could employ a debt collector ($165 and they take 20% of the money recovered)  I asked what does the debt collector do that you don't do?  Her reply was that they are not debt collecting specialists!

    I thought that Terri Scheer didn't pay for the first 6 weeks rent, don't know where I got that from because I read their product disclosure statement and they pay up to 15 weeks as long as there is a court order (which there is)  The PM didn't even ask me if I was insured, only gave me the debt collecting option!  I asked if the PM would complete the paperwork because there is a lot of information that only the PM knows.  She said no because she is no longer managing the property for me. (it was sold and the new owners are using the same PM)  Unbelievable I was paying her to manage the property and she should of done this way before the property was sold!  I've been waiting approximately 6 months for the money.

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

    HI Sonyasal
    Suggestions.
    Sounds like poor management in Forbes. Parkes is thriving and only 30 kms away and you may find other landlords having the same problems have their properties managed out of Parkes. Suggest you make some enquiries there. Your property could be managed from Parkes, tenants search for available properties in the local paper, pay into accounts, 30 kms for an interview is nothing in central west NSW, PMs can do all the routine inspections on Forbes properties at the same time. Prefer Parkes as it's thriving, Forbes seems depressing to me every time I visit, maybe I just seem to visit on Centrelink day. I'd invest in Parkes if I had a choice. Just moved out of Cowra after selling our motel, know the area. 
    Good luck
    cheers
    thecrest

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

    selling motels in NSW

Viewing 20 posts - 41 through 60 (of 69 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.