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Sticking up for property managers
Saturday, February 07, 2009
Debra Sutherland revealed in API’s My Property Nightmare section in December how she was left with hundreds of truck and bus tyres to clean up at one of her rental properties, with little warning from her property manager. Debra’s story prompted Destiny Financial Solutions branch manager Louise Lucas to write to API, suggesting that despite such nightmare stories, property managers are worth their weight in gold.
"While as a long-term property investor I could not only match Deb Sutherland on bad property manager experiences but raise her many times over, I actually have to set the record straight," Lucas writes.
"A good property manager can be your best asset in this business and invaluable when things go wrong – assuming of course you have the right one!
"What makes a good property manager? Well, for starters someone who treats you – the landlord – as well as the tenant, with respect and understanding.
"One of the best ways to test for this is to ring around agents and pretend you are a tenant looking for a property like yours. How the property manager treats you as a potential tenant will tell you volumes about how well they'll look after your property and you as a landlord.
"It never fails to amaze me the double standards some agents apply when you present as a tenant – particularly when rental properties are in hot demand!"
Lucas goes on to describe what she expects from a property manager:
- I want someone who calls/emails when there's an issue before they have spent my money – even if it’s an emergency!
- I want someone who bothers to remind me that my lease is coming up for renewal in a couple of months and what size increase would be appropriate in the current market – not when it's too late and the tenant has decided to go month to month!
- I want someone who knows what's going on in the life of my tenant so they can explain if they're late paying their rent
- I want someone who understands that a good tenant is one you don't hear from very often!
- I want and need someone who knows the law and obligations and reminds me of mine, as well as knows what tenants are entitled to.
So how has good property management helped Louise Lucas with her properties?
"When the tenant needs reminding to pay the rent consistently, someone else can issue the breach," she writes. "Also to keep on a tenant's back to ensure anything that is the tenant's responsibility is fixed and the garden is well kept.
"I don’t like to personally meet tenants but have good friends or other agents occasionally go through a property to review how things are going and if possible get me photos to ensure my manager is on the job."
Lucas says investors need to do their homework to find a good property manager.
"Why do people continually expect to make fortunes from their property investments without putting in any effort? You must treat this as a business that deserves your education and investment of time."
- Australian Property Investor
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