Landlords change Property Managers for a various of reasons. It doesn’t cost you anything and you don’t need to wait until the tenant’s lease expires or the tenant vacates the property.
The most common reasons in our experiences are:
- Poor communication
- Loss of income, rent and water usage.
- Lease renewals
- High Vacancy
- Poorly trained Agents
- High staff turnover
- Feeling like your property manager is not acting in your best interests
Poor communication
Good communication builds trust. There are many ways to communicate, face to face, mobile, SMS and email. Technology these days provides us with all the tools to communicate effectively, this includes all stakeholders, landlords, tenants, trades and other staff. When your Property Manager is not responding within 24 hours something is wrong. You shouldn’t have to be continually chasing your agent up.
Loss of income, rent and water usage
Loss of rent could mean either arrears or missing a rent increase opportunity. Rents can only be increased once every 12 months, so it’s important that the rent is reviewed at least 60 days in advance of the earliest opportunity. Tenants have 21 days to pay water usage. We have had Landlords whose agents have overlooked sending invoices to tenants. The tenant is not liable to pay invoices older than 3 months.
Lease Renewals
Having a tenant on a fixed term lease is important. It gives both landlords and tenants security and certainty of occupation until the end of the fixed term. It is easier for an agent to end a fixed term agreement than it is to end a continuing agreement. It is 30 days to end a Fixed Term agreement and 90 days to end a Continuing agreement. Some insurance companies insist on a fixed term agreement.
Maintenance
The costs of maintenance never gets any cheaper, the cost of materials and labour only ever increase. Doing regular maintenance can also assist the landlord with tax benefits each year. Spreading the expense of maintenance over a longer period is much easier for the landlord to finance. The agent relies very heavily on qualified skillful tradespeople. Having all your maintenance up to date means that your property can be either sold or re-let for the highest sale price or the best market rent.
High Vacancy
Agents should know the current market. A realistic rental price should be recommended and set. The re-letting process should begin 2-3 weeks before the tenants vacates i.e. once the notice to vacate is received from the tenant. Excellent photos and a well written advertisement will also reduce the vacancy period. In the current market your property shouldn’t be vacant for very long.
Poorly trained staff
Agents these days need to do “Continued Professional Development”. Property management can be a “stressful occupation”, the stress can occur when the property manager is dealing with too many difficult situations. The “bad” part of an agents portfolio might include tribunal hearings, evictions, difficult landlords/tenants and poorly maintained properties. Ideally your property manager will have plenty of admin support and a principal or licensee in charge who can assist your Property Manager with difficult situations.
High staff turnover
This is one of the biggest reasons landlords change agents. As new agencies open up, those agents go “head hunting” for a qualified Property Manager, so agents can leave for higher wages and better conditions. Once this cycle begins it takes time to arrest it. If your Property Manager resigns then the downward spiral begins. This is the time to find a new Agent/Property Manager.
Feeling like your Property Manager is not acting in your best interests
Your property manager must know the legislation and the residential tenancies agreement inside and out. The Property Managers job is to make sure that both the landlord and tenants are meeting their obligations under the residential agreement. In addition to that the landlord will have an agreement with the agent outlining the duties the agent will perform. If the agent is not performing their duties under this agreement, it is time to find a new Property Manager.
Should you be unsure how to proceed, please reach out to Steve Arnold, Principal of Arnold property. Steve has over 37 years’ of Property Management experience and can give you the guidance to assist you. Steve also has very well trained agents, who can also assist in his absence.
Contact Steve on 0419 947 980 or mail@arnoldproperty.com.au
