If you find this article helpful or enjoyable, please subscribe or share it with someone else who may benefit.

Does A Rental Property Have To Be Managed By The Same Agent You Buy The House From?

22/8/2018

It is a common misconception that when you buy an investment property, the same agency who sold you the house needs to manage the rental property for you.

Real estate agencies which offer both sales and property management services can make it seem easier or otherwise beneficial to use their services to manage the investment property for you once it has been sold. In reality, there is negligible benefit in this approach.

3 Simple Reasons To Contact Other Property Managers Before Choosing The Existing Agent

1. You didn't choose who sold the home to you

You didn't choose which real estate agency was listing the property you just bought. It just so happened they were chosen by the previous owner. So why settle for using them to manage your investment property without researching at least a few other options?

2. You won't be dealing with the same person you know

The sales agent you were previously dealing with and that you trustfully had a great experience with, will have nothing to do with the ongoing management of your property. A new relationship must be established with a new individual - or as is more often the case, an ever-changing team of property management staff. Investors too rarely get to enjoy a long-term relationship with a committed, individual property manager.

3. Expertise in sales does not translate to expertise in property management

The expertise the agency displayed in maximising the sales return for the previous owner (i.e. maximising the sale price you paid!) does not translate into an ability to generate interest from a broad range of potential applicants, select a quality long-term tenant, maximise rental return, manage rental arrears, arrange timely and reasonable maintenance, and so on. These are specialist areas untouched by a sales agent.

How Do You Know Which Property Management Company To Use?

Using the same agency that sold you the home is an easy option, though rarely the best option. Without exploring the pros and cons of the businesses offering you this service, how do you know the level of service, expertise, and commitment you will have from the agency in maximising the value and growth of your investment?

Before making a decision, we encourage all investors to read the article "How To Find the Best Property Management Company In Newcastle" which covers these 6 crucial steps in detail:

Consider businesses which are only focused on property management
Research to see how dedicated each business is to free education and advice
Call each property management company you have shortlisted
Ask how long the property manager has been working in the industry
Consider what the business offers you as an investor
Don't make a decision based on fees

In addition, we strongly recommend checking out Facebook and Google reviews for the companies you are considering. This can be very enlightening as it provides independent views from both landlords and tenants, not from the agency itself.

If you are seeking focused, experienced, transparent and professional property management in Newcastle, contact us now. We'd love to meet you and discuss your investment.