"I've Decided To Stay With My Current Real Estate Agent Because They Dropped Their Fees". Oh no.

In this article we run through a series of steps we regularly see from investors who are fed up with terrible service from their current real estate agent, only to be wooed to stay where they are by a fee reduction.

If this sounds like your situation, read on.

​We've seen this scenario countless times. In fact, just in the past two days we've seen this situation play out on yet another two investors. Here's what typically happens. 

1. We're contacted by a frustrated property owner

​It happens so often it's astounding. We're contacted by a property owner who is at the end of their tether with poor service from their existing property manager. On many occasions we've had conversations with people who are literally in tears from the frustration and disappointment they have with their property manager.

​2. The owner tells us about their poor experience

​You name it, we've heard it. Some of the most common issues we hear from people tired of the poor performance or lack of service from their property manager include:

• The property manager is very slow to respond to calls or emails
  
• Routine inspections aren't being completed
  
• The tenants are treating the property badly and no action is being taken
  
• Maintenance was completed and charged without the owner being told about it
  
• Maintenance was approved by the owner but never completed
  
• Their property manager has left the real estate agency and the owner wasn't told

So many people experience shocking service from property managers, and we hear about it all because we receive their frustrated phone calls when they consider making a switch. 

​3. We talk about our approach as an agency

​We talk to the owner about our approach as an agency, how this is different to what they've been experiencing, and WHY our level of interest and care is different to most other agencies. We let them know that as disappointing as their experience is, they are sadly not alone and we have these conversations often.

At this point, we have simply received a phone call. We have not gone door-knocking or letterbox dropping to find this person. They have become frustrated to the point of picking up the phone to try and find an alternative property manager who will treat them and their property with due care and respect. 

As a result, the next step is surprising.

​4. The owner is offered a fee reduction "too good to refuse" by their current real estate agency

​Time and time again it happens. The frustrated owner tells their current real estate agent that they've had enough and are taking their business elsewhere. 

And the response of that poor-performing agency? They offer to drop their fees to retain the business. 

Kind of missing the point, isn't it?

Think about it. Instead of genuinely improving their service or rectifying the problem (i.e. actually fixing the issue), the owner is wooed to stay through a discount for the bad service they are receiving. 

It seems to be a rather insulting way of addressing a service issue - to charge less for the continuation of poor service - but it happens regularly. 

The poor performing agency offers a fee reduction to retain the business.
​Kind of missing the point, isn't it?

​Why Is This A Problem?

​While it might seem like a cost reduction makes staying put worthwhile, it generally just extends the period of disappointment and frustration (albeit for a discount!). 

The alternative? Fix the problem. Don't just make it cheaper!

Remember, you didn't start looking around at other agencies because the fees were too high. You were looking around because the service was poor. Don't let a shiny fee reduction distract you from the real issue. 

The old saying "you get what you pay for" couldn't be more relevant than in these situations. 

Thinking back to the common reasons people become frustrated in the first instance (lack of routine inspections, tenants treating the property poorly, maintenance not completed as expected, etc.) - these are issues which if left unchecked will cost significant more money to rectify than any fee reduction will provide. 

Remember, you didn't start looking around at other agencies because the fees were too high. You were looking around because the service was poor. Don't let a shiny fee reduction distract you from the real issue. 

Good luck in making the right decision in the management of your valuable investment.

Thinking Of Changing Agencies?