When choosing a property manager, it can feel like everyone is offering much the same thing. The fees and charges between different options can make it hard to compare apples with apples.
Many investors resort to creating a spreadsheet, listing all the real estate agents they can find and recording the management fee, lease preparation fee, monthly admin fees, advertising fees, etc. for each. Some even work out the annual cost of using each agency, and whoever comes in cheapest "wins".
If this sounds even remotely like you, read on. In this article we cover the 3 criteria most people use to choose a property manager, and why these criteria are flawed.
So often, we meet with investors who have had a poor experience with another property manager. The tales are usually very similar, along the lines of "Our property manager used to be great, but then moved to another role and we're left with someone who doesn't seem to know what they're doing".
Our reaction to experiences like this used to be one of surprise. But negative experiences with property managers and real estate agents have become so common, bad experiences are considered normal by many working within and with the industry.
Now, the commonly-heard anecdotal negative experiences have been quantified by research, and there are 5 main areas which can be identified as reasons for poor property manager engagement and retention in the industry.
When meeting new landlords or tenants, we often receive comments such as "We hadn't heard of you before". This is understandable - our family-owned and run business is far from a household name, and that's fine with us!
But let's reflect on this. Does being a "name brand" in real estate really translate into superior service or reliability?
Investors of course want to minimise vacancy in their rental properties. However many investors tend to wish to hold out for a higher rental return rather than fill their property (and start receiving income!) more quickly.
In this post we'll run through a real example of the outcome of holding out for higher rent, based on a property in the Newcastle area which we had proposed to manage. Details of circumstances are contained in the text, but if you want to cut to the chase, you can scroll to the table at the end of the post.
Newcastle Property Management - A Shocking Real Example Of A Landlord's Experience With Another Agency
This article serves as a sad reminder that things are not always as promised when you select a Newcastle property manager to look after your investment. We have recently taken on management of a property for a landlord who continues to be astonished by the shocking service provided by their previously-selected agent.
We've since had desperate tenants walk into our office in the hope that there is still life in an application they previously submitted to the outgoing agency.
The quick summary of this more detailed article is:
DO NOT SETTLE FOR A SERVICE YOU ARE NOT HAPPY WITH OR AN AGENT YOU ARE NOT CONFIDENT IN.
There are many factors which influence how long a rental property may remain on the market before a suitable tenant is found. Some of these relate to the property itself, others to the agent selected to list the property, and others to the rental market at the time of listing.
While the following list is not exhaustive, it provides a good starting point for understanding the reasons impacting how long a property may remain on the market, and what can be done to up the pace.
There are many advantages of consolidating your investment property portfolio to be managed by a single property management company. The benefits range from operational aspects which make life easier for you as an investor, to being able to maximise your return on investment through having visibility of your investment properties as a whole.
Carnelian Property Management Newcastle NSW
We are a family-owned and run Newcastle real estate agent offering expert property management across Newcastle and Lake Macquarie.
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