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.
Research Shows Most Real Estate Agents Are Terrible At Property Management
The consistent high turnover of property management staff, lack of motivation and lack of experience of property managers in Australia is not just anecdotal, it is backed by research.
Just some of the findings from Rockend and Elite Agent's 2018 Voice of Australian Property Management Report, a nationwide survey of 1,034 property management professionals, revealed:
As the report concludes, "When employees are disillusioned and unhappy it impacts training costs, onboarding and loss of business knowledge resulting in a poorer service to owners and tenants as teams constantly struggle to be on top of their workloads".
It is very unlikely that the agency which sold you your home is immune from these industry-wide property management issues. In addition, we offer 3 further reasons to contact other property managers before choosing the selling agent.
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:
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.
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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