Disgruntled Property Manager!

From: J Parker


I am really getting sick and tired of being made to feel like the "big bad landlord" lately.
Last week I had tenants who refused to move, and this week I've got a PM who is refusing to take on my properties in her portfolio because, according to her, I've kicked out "extremely good tenants" to attain a higher rent. When I told her that I like to pick my own tenants (and my own rents) she was not understanding at all. This is on a house that is yet to settle, and all because I wanted vacant possession. Is this getting too emotionally involved with your tenants or what?!
As an investor, I sometimes feel like agents treat me as if I'm out to rip tenants off by charging the rent. They feel quite happy to charge 7-9% management fees but when it comes to increasing the rent, it's, "Well, you know, they're really good tenants and it's kind of hard for them to pay that rent..Couldn't you make it lower?" etc.
Does anyone else get treated like this (almost with contempt) or is it just me? I hung up from this PM feeling like an ogre, simply because I wanted a fairer rent.
The way I look at it is that it's my property and I can rent it out to whom I like and for what I want.
Has anyone else come across PM's like this or have I just been unlucky here?
Cheers, Jacque :)
 
Last edited by a moderator:
Reply: 1
From: Glenn Mott


Yes Jacque,

I have encountered property managers like this before...they fail to let you
know when tenants are behind in rent and then don't bother getting it back.
They seem to be on their own moral crusade which is totally at odds with who
is paying their wages.

Regards

Glenn Mott

-----Original Message-----
From: propertyforum Listmanager
[mailto:listmanager@bne003w.webcentral.com.au]
Sent: Wednesday, 28 August 2002 2:39 PM
Subject: Disgruntled Property Manager!


From: "J Parker" <jacqueparker@ozemail.com.au>

I am really getting sick and tired of being made to feel like the "big bad
landlord" lately.
Last week I had tenants who refused to move, and this week I've got a PM who
is refusing to take on my properties in her portfolio because, according to
her, I've kicked out "extremely good tenants" to attain a higher rent. When
I told her that I like to pick my own tenants (and my own rents) she was not
understanding at all. This is on a house that is yet to settle, and all
because I wanted vacant possession. Is this getting too emotionally involved
with your tenants or what?!
As an investor, I sometimes feel like agents treat me as if I'm out to rip
tenants off by charging the rent. They feel quite happy to charge 7-9%
management fees but when it comes to increasing the rent, it's, "Well, you
know, they're really good tenants and it's kind of hard for them to pay that
rent..Couldn't you make it lower?" etc.
Does anyone else get treated like this (almost with contempt) or is it just
me? I hung up from this PM feeling like an ogre, simply because I wanted a
fairer rent.
The way I look at it is that it's my property and I can rent it out to whom
I like and for what I want.
Has anyone else come across PM's like this or have I just been unlucky
here?
Cheers, Jacque :)



To reply: mailto:propertyforum.101510@bne003w.webcentral.com.au
To start a new topic: mailto:propertyforum@bne003w.webcentral.com.au
To login: http://bne003w.webcentral.com.au:80/~wb013
 
Last edited by a moderator:
Reply: 2
From: Rolf Latham


Hi Jax

Id be tempted to ask that same PM if they would like to lower their % take by as much as they are asking you to discount rent.

I bet you get "Well its not the same, we operate on tight margins" or something very similar.

Ivestor or charity - if you wanted to be a charity you wouldnt need a PM in the first place !

Ta

Rolf
 
Last edited by a moderator:
Reply: 2.1
From: Property Investor


Hi Jacque,

I'm with Rolf, ask them to lower their management fee. As far as I'm concerned you should not be paying more than 7% anyway.
By the way I'm being charged 5%, however I have given the PM 3 properties to look after.

Regards,
Mannie.
 
Last edited by a moderator:
Reply: 2.1.1
From: Joanna K


You're making the property manager do more work!!

Try and find yourself another property manager who is a little more entrepreneurial if you can.

If you're able to find someone like that you will notice a difference.

Besides - is it the property manager's business that he/she can decide what properties he/she wants to take on? Speak to the boss.

Kind regards

JOANNA
 
Last edited by a moderator:
Reply: 2.1.1.1
From: Manny B


Hi Jacque,

I agree with the above posts... if they want you to drop the rent, ask for your fees to be reduced... Personally I'd be looking for a new PM...

By the way, my PM charges 5% plus 1 week letting fee (he's managing 3 IPs for me, but told me if I get a 4th with them they will drop it to between 4 & 4.5%)

Cheers,

MannyB.
 
Last edited by a moderator:
W

WebBoard

Guest
Reply: 2.1.1.1.1
From: Samantha Lennox


My PM recently discouraged me from putting up the rent (even though I had agreed to put in a dishwasher at the tenant's request) but I figured what did I have to lose. The tenant can only say no and then I'd have to re-evaluate. It turned out that the tenant thought a rent increase was reasonable in return for the dishwasher so the moral of the story is listen to your instincts not your PM.
I'm paying 5.5% in fees and I only have one property and it's in Sydney. The PM agreed to reduce their fees because they had been managing the property for the previous owner too.
 
Last edited by a moderator:
Reply: 2.1.1.1.1.1
From: Maureen Brabek


I was wondering, for those with property in Qld what the PM fee is? they seem to be dearer than NSW. I've found rates here from 5% to 7.7% but up north they at 8.25% on the gold coast. I just recently changed PM as payments were going into my account on 6th of the month instead of 1st or 2nd. they were later than this twice. It took until the 10th of the month on one occasion! Also they were supposed to charge 7.5% fee but when I checked their figures it was 8.25%,They hadn't told me the 7.5% didnt include the gst.Anyone else had these sorts of Problems? M.B.
 
Last edited by a moderator:
Reply: 2.1.1.1.1.1.1
From: Les .



G'day Maureen,

An interesting point about Qld - just one thing to keep in mind, is that average rents are likely to be far lower than (e.g.) Sydney or Melbourne. But they need to do the same amount of work for you... So, a higher management rate is not that unexpected, is it?

I have negotiated a 6.5% rate in Brisbane (plus GST, is 7.15%) - the initial rate was 7.5% (plus GST = 8.25%). The rent concerned, though, is $180 per week. Thus cost (before negotiation) is $14.85 per week.

In Sydney, this would equate to a Sydney rent of $270 at 5% (or 5.5% with GST). Sound about right? (Average?)

Regards,



Les


- "Eschew Obfuscation" - ;^)
 
Last edited by a moderator:
Reply: 2.1.1.1.1.1.1.1
From: Maureen Brabek


Thanks Les for your answer, The rental is $260p/w which is equivalent the rent for many properties in outer Sydney,so I Think I should have negotiated a lower %.I rang other agencies and was told this is the usual fee. M.B.
 
Last edited by a moderator:
Reply: 3
From: Adam Randall


4 hours before leaving on an overseas holiday I got a call from the property managers that look after my house (they new I was going). The junior girl who I really don't like since she always seems to defend the tenants whenever they do something wrong, told me I have to get the pool proffesionally cleaned as the tennants want to use it (2 weeks before they were moving out). This is after the tenants had not cleaned it in over 6 months. I estimated at least $1000 to have it in a swimmable condition, so I refused. The property manager rabbited on about the chances of being taken to court if I don't do something straight away (it had already been to the tribunal in my favour). I didn't do anything, and nothing came of it. I have alot of stories like that.
Another time I had cleaners charge me around $800 to clean a house. I could not find what they had actually done, then the neighbour told us they spent 15 mins at the house and did not return. The property manager then defended their actions, and still expected us to pay.
Another incident I paid $500 for cleaners, then had the incoming tennant complain because of the poor state of the house, once again the property managers defended the cleaners actions. Found out later the cleaner was related to the property manager.
 
Last edited by a moderator:
Reply: 3.1
From: Jerry Maguire


oh well my PM in Kellyville & Minchinbury only charges me 3% after serious neg.
but the rest of them i pay 5% which i think is reasonable if they can do the job and do it well i wouldn't mind paying them a lot more than 6%.
the one b4 this PM charges me 7% which i have already sack them...
they just inspect the property 1 month ago and they send me the inspection report which says that they got nice and short grass but when i drove pass the place the grass was up to my waist!!!
it is all up to what you neg. with the PM as to what they charge.
 
Last edited by a moderator:
Reply: 3.1.1
From: handyandy


I find with all PM that you need to train them. I spell out what I expect in no uncertain terms. Obviously there are times when they don't work out, in which case I move the property.

Generally I pay 5% plus the various costs.

In relation to rents to be charged/reviewed I look at the market and try to stay at the market. I would never drop the rent for an existing tenant but may adjust the rent downwards between tenants (but rarely - I think never).

By the way a good tenant as far as a PM is concerned is a tenant that pays regularly and doesn't complain. Their measure completely disregards how the tenants are actually looking after the property.

Cheers
 
Last edited by a moderator:
Reply: 3.1.1.1
From: Geoff Whitfield


A slight problem here.

I agree, a tenant who complains when things are not bad is a bad thing.

But I've also had tenants not complain when things are bad. That can cost us both money.

If it's bad, let them please tell me of the PM.

Email can help make it better when things are really bad. But it can also make it worse otherwise.

I had a tenant complain to the PM (by email) yesterday about a leak. The leak was supposed to have been fixed already. This sort of thing might cause a loss of tenant. The leak was supposedly already fixed. The original tradesman WILL be required to fix it. Gratis.
 
Last edited by a moderator:
Top