There is no property management business perfect for everyone. As an independent, family-owned property management business in Newcastle, we know for example that some people are more comfortable with a "big name". Our personal and directly-accessible service is not for everyone.
We see part of our role in the local market as helping to educate investors and potential investors. At times, this means we will take a more detailed look at other property management options - not to coerce, but to clarify the differences.
What is Propper?
Propper, previously in the market as Leasi, is a call centre based property management service promoting themselves as "Australia’s first full-service, low-cost property management agency operating nationwide".
A look at their website shows there is a very strong focus on offering low fees. As we have covered many times, cheapest is not best (see "Newcastle Property Management Fees and Charges - A Comparison"). Additionally, property management fees are tax deductible and typically only only vary by $10-15 per month between most agencies.
However, if cheap fees are your primary objective in selecting a property management company, Propper is likely very compelling (and our our service-focussed offering is not likely to be the best fit for you!).
How is Propper Different From Carnelian Property Management?
1. Propper Runs A Call Centre. You Don't Have An Individual Contact Point.
Using Propper, you do not have direct contact with an individual you can build a relationship with and who understands your investment goals, challenges, and the history of your property and tenants intimately.
In fact, one of their Frequently Asked Questions is "Do I get to meet my property manager in person?", to which the answer is "You don’t get to meet the team in person, but you can talk to any of our Customer Success Experts at any time".
We value the personal relationships we have directly with our investors and tenants.
2. Propper Will Complete Just One Routine Inspection Per Lease Term
According to their FAQs, Propper will conduct "1 routine inspection per lease term or a minimum of 12 months (whichever is greater)". So, if you have a tenant in the property on a 12 month lease, there will be only one routine inspection during their tenancy.
Most property managers, including ourselves, commit to completing three or four property inspections per year. One routine inspection per year indicates a worryingly minimal degree of attention being paid to your property.
3. Propper's Fee Structure Is Different
Propper has a simple fee structure of a 5.5% management fee plus a $799 letting fee. In comparison, here you will find our clearly outlined property management fee structure.
What does the difference in fee structure actually mean? On a typical $450 per week rental for a 12 month lease period, our fees would total only $10.53 more per month than Propper.
So, while the fee structure is marginally better using Propper (in this example), the difference equates to only $10 per month of tax deductible fees. And, per points 1 and 2 above, an arguably less-compelling service.
If you'd like to learn more about our personal and accessible approach to property management, contact our agency owner directly now.
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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