Article by Kylie
10 tips towards selecting the right Property Manager
Can your Property Manager make a difference between a good and bad investment?
YES they can!
Are you searching for a Property Manager to rent out your investment property? If so, the following tips will help you ensure that you are dealing with the right Property Management Agency for you- one who will act in your best interest while not charging you excessively their services.
1. Know all the costs involved
Many companies charge their commission rate plus extras on top. Why? The REIQ sets a maximum commission rate that Agencies are allow to charge- it’s an old industry trick to charge a number of extras on top of this to bump up their earnings.
Do your homework and find out exactly what other costs you will be paying apart from the commission rate/management fee. All those extras that are added onto your rental statement at the end of the month can quickly add up especially if we are talking about a long term investment. It is important to analyse the offers you get from agents to be able to choose smart, with the least possible costs to you.
2. Check their attitude
Your PM will be the person representing your investment to potential clients, ask yourself how professional are they? I’m afraid some agents are way too lack about the attitude they extend to you including their presentation. You should take the first impression you get when you deal with them as an indication of the services to come. Some of the things to check for include;
- How informed are staff about the procedures?
- Do they represent a professional image?
- Can they answer all your questions without hesitation?
- How courteous and friendly are they towards you?
You’d be surprised at the apparent lack of procedures and know-how some Property Management agents display, look into this carefully.
3. Check their experience
A good question to ask is “how many years has the Property Manager been working in this field”? Remember, this relates to the individual and not the agency. Just because you are dealing with a large brand name agency it certainly doesn’t mean their service is going to be any better, for all you know your potential Property Manager could be new into the industry with no direct experience.
Many Real Estate employees start their career as receptionists with the next step being Property Management and some of the top performers into sales. Look for individuals who have chosen Property Management as a career and have at least 5 year’s experience.
4. Get Personal
Find out exactly who your Property Manager would be. This is someone who you will be in contact with on a regular basis. Find out if this is this their sole role, many agencies see Property Management as a “poor sister” to the glamorous sales department and some even leave the management of client’s assets to the front desk staff and receptionists. Ensure that the agency can guarantee you a dedicated Property Manager who will solely be focusing on Property Management.
It would be ideal to communicate with the same person (staff changes permitting) throughout your contract period, it makes matter easier not having to explain situations or instructions to 5 different staff members over and over again. If the office tends to swap people or have a high turnover rate you are best advised to seek another company.
Ask if the director/owner of the agency is involved in the day to day management of the Property Management division, usually when the director has an active involvement they will take the business of Property Management more seriously.
5. Are they punctual and professional?
If an agent is late for your appointment then I would think twice about their services. Chances are if they can’t stick to your appointment on time, then they are probably going to be negligent about the other aspects of managing your property.
6. How ready-available are they?
Another important aspect of choosing the right Property Manager is to make sure the person is likely to stick around. Customer service is key in assuring a long-standing business relationship, it will be hard to keep the trust and respect upstanding if you end up dealing with the office’s apprentice months down the track.
7. Workload
If you are looking for personal attention than selecting a property manager who looks after too many properties is not the right choice for you. Some busy agencies have 250+ properties per property manager. In general this is far too many to give your property the individual attention that it deserves.
8. Ask for a written appraisal
A Rental Appraisal throughout all agencies is a free service, they will come to look at your property to appraise it for the rental market. A good Property Manager will provide you with a written proposal which should include information about their company, marketing techniques, a quote and information on their fees and charges.
Look for someone who has put in the time and effort to present a professional image to you, if they are willing to make the effort to present their services professionally it is likely they will look after your property professionally also.
9. Will they act in your best interest?
A while ago a family member asked for my assistance in finding a holiday rental in an area outside of the Gold Coast. I phoned up 4 local agents who had properties available on their website for those dates and I was shocked to find that not one of the 4 agents phoned me back to help with my enquiry- and I was ready to make a booking on the spot.
I thought about the owners and wondered what they would have thought if they knew they had missed out on a $ 3,000 a week booking. This just goes to show that you want to make sure your property management agent will act in your interest, being too busy to return guests phone calls can make a big different to your rental return and vacancy rates.
10. Proper preparation
Investment properties are supposed to help you make money, not cost money in the long term. Dealing with the right property management agency you will save yourself a lot of headaches and money. Give each offer its due care and respect and then decide upon the right company after truly evaluating their services.
Happy searching!
Coastal Holiday Rentalswww.coastalholidayrentals.com.au
Senior Property Manager at Coastal Holiday Rentalswww.coastalholidayrentals.com.au
