Selecting the right property manager and/or agency is something that needs to be very carefully considered. Some problem areas that you should know about are:
1. Cheap fees might sound wonderful, but cheap service will soon follow
If an agency consistently offers cheap management fees it means that the property manager must manage more properties to bring in the same level of income to the business that they could earn if they charged a quality level fee. This type of business model focuses on the “quantity” of managements under their portfolio, and not the “quality” of the managements.
This added pressure on the property manager will eventually mean lower service levels and will lead to property manager burnout, which in turns lead to high turnover of property management staff; and in the long run, consistent poor service and an inexperienced team is a recipe for disaster. Some property managers may believe that giving cheap fees equals good service, but as the saying goes, you get what you pay for…
Hot Tip: Always look for a highly experienced property manager or agency that charge quality fees – this is a great indicator that they can actually afford to provide a high quality service to their clients.
2. Ineffective Rental Arrears & Termination Procedures
Some property managers do not chase rental arrears until it’s really too late. This is a very serious concern, with many agencies waiting until the tenants are more than 7 days late before taking any enforcement action. A large number of tenants are terminated by eviction due to the property managers lack of communication during this rental arrears period, mainly because the Property Manager fears confrontation. The severe lack of communication is what allows the tenants to get excessively behind in the rent, causing financial concern & unnecessary stress to everyone.
At The Leasing Network, we have a zero tolerance for rental arrears. If your tenant has missed their regular payment, we contact them by sms and email (when 1 and 3 days late), then we follow up in writing (by text message and also by email should they reach 5 days, 7 days and also 9 days arrears status). At 13 days late we would issue a Notice Warning that a Termination is pending, and at 15 days in accordance with the legislation, a Notice of Termination is served. Engaging with your tenant when they are only a few days behind ensures that the problem is addressed before it gets out of control. At The Leasing Network, you will also be notified of any arrears, so there are no nasty surprises.
3. Missing all the details, creates lengthy delays
Many property managers do not pay attention to the little details because they claim, they don’t have enough time. Dotting every “i” and crossing every “t” is best practice. Every single request should be followed up and every single problem should be solved, regardless of how big or small the problem is. If it was reported, it is a problem, and that needs addressing, and in a timely manner.