Anyone had a PM not from a local area to your IP?

[kennyboi]

I had an IP in Bankstown area and another in Burwood area in Sydney (about 17km apart).

I am wondering what are the pros and cons, if say, to have the Bankstown IP managed by a PM based in Burwood?

The motivation is lower commission in this instance. Since more people source rentals from the internet and pay their rent online these days, I am not sure if there is real benefit now to have a local agent with a local shopfront.

 

[Scott No Mates]

You've hit the nail on the head but don't make your decision just on the $.

Who is the better PM? Will they negotiate for having 2 properties? (not a real big client but 50% better than one property).

Do they want to manage a solitary property in the area?

 

[MichaelGilbert]

Hey Kennyboi,

In terms of attracting phone calls and emails about your property the 'out of town' agent (Burwood) would not have a problem (shop front not important).

However the Burwood agent would not be able to get to he property as easily as the closer one. Lets say a great tenant calls up, wants to get through at a particular time or NOW but because the Burwood agent is too far away they don't have the time to go out there so they resort to 'only' Open Homes to save time.

Other issues of the top of my head:

During the tenancy:
- They would not be driving past ever. So if the lawn was long they would never see this unless at a Routine Inspection. (not a big deal but a point regardless).

- If there was a repair issue that needed to be looked at in person by the agent, they would not be able to get out there as easily. Meaning they may opt to just get the trades person out there and possibly waste your money.

- The agent may not be able to get their good trades people out that far (although they should be able too- but they may charge more).


These are all fairly minor points. But still atleast you know.

When it all boils down, I would use the BETTER agent. Not cheaper.

(Sorry this post was rushed so hope you understand)

 

[chilliblue]

It is common and so long as your choice of PM is willing to do it and you are happy with services why not?

 

[Brady]

Just looked on google maps 19.4km away, no issues. Been tenanted for >2years agency managing now does a good job, keeps me up to date and tenants are happy.

 

[impala67]

Just looked on google maps 19.4km away, no issues. Been tenanted for >2years agency managing now does a good job, keeps me up to date and tenants are happy.

+1.

Same with mine.

Distancewise 9 kms away from the R-Estate office and in opposite directions (Melbourne) for two units, but traffic lights most of the way. I queried this with the agent prior, and they are a mature agent, experienced and the main thing is they are well organised.

No issues 2 years+. Inspected on time, attended on time, all recommendations for the different areas have been spot on also etc. They also attended to 6 x15 minute opens to relet one of them this year, & let it our before lease expired - no issues. So it depends on the capacity of the agent. Find a good and experienced agent and stick with them.

 

[neK]

I've experienced both and the answer comes down the actual PM.

Crappy PM's
Closer is better. The further you away from the PM's office, you can assured you will get the first or last time slot because the property is just too far away. (Far away in this instance was 15+ min drive from the office).

I found the first (10:00) and last time slot (3:00) to be the worse because it was either too early and people would miss out or it would too late and people were just tired after looking at multiple properties between the 11am to 1:30pm period.

With the crappy PM's if you were close their cluster of properties, you would get a good time slot.


Good PM's
Doesn't matter where their office is. They will make it happen. My PM currently manages properties all over Sydney (mine, parents, sister, several friends) Only mine are remotely close to his office 15 mins, everyone else is 35-45mins drive). Its just better time management on their part.

 

[allsuccess]

Good PM's
Doesn't matter where their office is. They will make it happen. My PM currently manages properties all over Sydney (mine, parents, sister, several friends) Only mine are remotely close to his office 15 mins, everyone else is 35-45mins drive). Its just better time management on their part.

Agree with this. My PM has to travel 60km to one of my IPs. No issues (so far )

 

[kennyboi]

At the moment, the PM at Bankstown don't tell me anything about arrears. I had to find that out from the monthly statement and it isn't the first time. Their communication is poor. Do you guys have pro-active communication from your PM with arrears or do you also find that out in the statement?

The PM at Burwood was introduced to me via a family member who used him before and the feedback was good.

So, I guess the point I am worried about is the distance. The Burwood PM did say it didn't matter since it is still considered close compare to Blacktown, and he did give me and my family members a good bulk commission rate.

Also, since tenant has a history of arrears, I am also concern about the 30 days notice period vacuum, where existing agent less likely to care in the 30 days period. How do people normally change agents during tenancy?

 

[Scott No Mates]

I wouldn't worry too much about the distance from Burwood to Bankstown. I manage several in Canterbury/Bankstown LGAs and further west and I am on the North Shore.

 

[MichaelGilbert]

Re: Notice Period
I would discuss with the current agent about a shorter notice period. Say your unhappy with the way its going and say you want to change agents. Basically negotiate a shorter time frame or no time frame at all. You'll notice most agents don't want to manage someone else's property if the owner is not happy.
If you can't organise a shorter notice period I would call the agent every second day to ensure its all going well. - manage the manager.


Re: Distance
Google maps says its a 27 min drive. Slower in peak out traffic. I can understand you'd be concerned about that and I would be too. But if I was confident I was going to use a GOOD agent I would not not be so concerned. As Nek said earlier a Good agent will make it happen.

 

[neK]

At the moment, the PM at Bankstown don't tell me anything about arrears. I had to find that out from the monthly statement and it isn't the first time. Their communication is poor. Do you guys have pro-active communication from your PM with arrears or do you also find that out in the statement?

Well this tells me should you get a new PM (whether they are local to bankstown is irrelevant)

The PM at Burwood was introduced to me via a family member who used him before and the feedback was good.

So, I guess the point I am worried about is the distance. The Burwood PM did say it didn't matter since it is still considered close compare to Blacktown, and he did give me and my family members a good bulk commission rate.

If the feedback on their service is good, thats all matters (assuming they live up to their expectations).

I'd rather pay 10% and get 10/10 service than 4% and get a 1/10 service.
A good PM will do what they can to avoid being in arrears (and it starts with the source - ie a good tenant - a good PM will know how to pick and good one from a bad one). All it takes is a few weeks in arrears and the inability to collect rent to nullify any savings from a lower management fee.

 

[Lil Skater]

I manage properties through the entire metro area.

The furthest property is ~80km away from home, about 1h15m I think. It's a nice drive with the music blaring and signing along to bad 90's music

It doesn't bother me, and I know my clients are happy even being far away.

I don't get the chance to drive by every so often like I would with closer properties, but I do have friends over that way and only the other week when coming back from seeing someone from Geelong I made a quick pit stop.