Limited service offering
Some property management companies provide a limited range of services and whilst they may charge less this isn’t the best service model. Some management companies only manage rental payments and certain maintenance tasks and leave the advertising, tenant screening, inspections and rental appraisals up to the landlord.
Best of breed property management includes the full list of responsibilities detailed above and considering their expenses are often tax deductible, if your current property manager isn’t providing these services it may be time to make a switch.
Breach of contract
The agency agreement you enter into with your property manager is a legal document and therefore they are legally responsible for the management of your property. They must act ethically and in good faith and always act in the best interest of you, the property owner. If your property manager doesn’t comply with this, it may be time to consider a change.
Poor maintenance performance
Management of any maintenance issues is an important element of a property manager’s role. Keeping your investment in good condition is critical to maintaining good tenants, attracting new tenants and preserving your investment.
As a starting point if they are failing to address maintenance requirements as detailed in your rental agreement, or if the property is not maintained to ensure a safe and healthy environment, your tenants may have the right to break the lease without penalty, leaving you out of pocket and in search of new tenants.
Secondly if they fail to address urgent maintenance issues as directed by yourself you could lose thousands of dollars in repair costs because of their lack of action.
If your property manager doesn’t have the experience or tradespeople required to effectively manage the maintenance issues of your property or your finding they are not addressing issues in a timely manner, it may be time to change.
Lack of property management expertise
Does your property manager have the experience to attract and screen potential tenants, do thorough reference checks and review potential tenants’ rental history?
Experienced property managers, like the ones working at LJ Hooker, see hundreds of rental applications and are experienced at attracting and identifying the best tenants. Whilst you have the final say as to who rents your property, if your property manager lacks these important skills and your finding the quality of tenants put forward to you for consideration aren’t appropriate, it may be time to look for a more experienced management team.
Consistently late rental payments
Good property managers work to ensure your tenants pay their rent on time. Consistent rent collection is key to receiving regular rent payments and this directly effects your cash flow and in most cases loan repayments.
Is your current property manager effectively managing this each month? Are they enforcing lease policies if payments aren’t received? If not, then it may be time to find another property manager. LJ Hooker has an excellent track record in ensuring rent is received in full and on time as we know how important this is to our clients.
Unsure of legislative requirements
Is your property manager up to date with the constantly changing legal requirements? Are they attending training and education programs to stay across any legal changes and advising you as to how this may affect you and your property? If they are not up-skilling themselves and communicating with you regularly it may be time to change teams.