Inefficiencies of PMs

Discussion in 'Property Management' started by devank, 16th Jun, 2015.

  1. devank

    devank Why why why?

    Joined:
    22nd Jul, 2008
    Messages:
    2,942
    Location:
    Inner West, NSW
    Just wondering if your PM is as hopeless as mine?

    Here is a email communication happened with my QLD PM over a week period.

    Agent: Please advise your instructions for the lease renewal of *No, Street name*, Edens Landing. We recommend a 6 month term at the current rental prie of $380.00 per week. Please advise if you are happy for this offer to be processed and sent to the tenants.

    Me: Can you please justify your rental estimate?

    Agent: I have done some research in regards to the rental price. At the moment on the market there are 3x houses that are the same lay out as your property in 'Street Name' that are advertised for $370.00, $390.00 and $400.00 p/w
    We are receiving $380.00 per week at the moment. Rent was increased in July 2014 by $10.00 per week.

    Me: $370 pw one has 3 bed + study. That leaves only $390 & $400.
    Median rent for Edens Landing is $385.00. Is the quality of our property less than an average 4/2/2 with air-con property?

    Agent: We can increase the rent if you would like.
    I just rented a 4 bedroom house in Edens Landing, 2 bathroom, huge back yard for $365.00 however that took 3x weeks to rent.

    Me: What is the address of the property went for $365?
    We added new Air conditioners recently. Now the house is being re-painted. Hence, I thought $10 increase might be a fair amount as long as tenant doesn't leave.

    Agent: * Address of the property rented for $365* was only a 3 bedroom house sorry that rented for $365.00
    $10.00 increase would be very fair.

    This PM didn't do any work before suggesting the new rent!

    Do I have unrealistic expectation?
     
  2. Nick Valsamis

    Nick Valsamis Vantedge

    Joined:
    11th Apr, 2015
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    Location:
    Sydney
    I wouldn't say that it's unrealistic to expect them to do their job properly.

    But in an ideal world, they should have also provided reasoning in the first place.
    1. Why they want to do a 6 month lease leaving the end of lease into December.
    2. Why they think $380 is still market price.
     
  3. perthguy

    perthguy Member

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    Location:
    Perth
    Yes and no. I use agents to find tenants for a property in Melbourn and a property in Perth. Before I speak to them, I always go through every listing in the area around my property price range. Then I ask for a rental appraisal, and if I don't agree, I send comparable properties listed for rent as justification. Of course this always results in the 'yeah but...' conversation ;)

    No, you are right. The PM should be able to provide evidence for their rental appraisal. You are paying them after all... :)
     
  4. Lil Skater

    Lil Skater Member

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    Melbourne
    One word. Lazy.

    They should do the research for you, and then come to you with their suggestions and reasoning to keep at the same rent/increase.
     
  5. Xenia IM

    Xenia IM Property Manager

    Joined:
    19th Dec, 2014
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    754
    Location:
    Adelaide, South Australia
    they should be providing you with comparative market analysis for each renewal they are recommending.

    If they are not - then you can just send a one line email.
    Please renew at $390 pw. End of story!!

    If you know they are lazy then your instructions need to be more proactive.
     
  6. Lil Skater

    Lil Skater Member

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    Melbourne
    No. An owner doesn't need to be proactive, the PM does. That's what we're paid for, and if they can't do it it's time to move on.
     
  7. Xenia IM

    Xenia IM Property Manager

    Joined:
    19th Dec, 2014
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    754
    Location:
    Adelaide, South Australia
    It's in everyone's best interest to ask for exactly what they want in life in general.

    Personally, I rely on no one!

    Yes it's the PMs job but you can't expect a landlord to take a loss on rental income because the PM just didn't put the rent up enough. Ask for it to be put up!
     
  8. Genia

    Genia Member

    Joined:
    17th Feb, 2015
    Messages:
    55
    Location:
    Doncaster East, VIC
    My friends were a bit annoyed with their PM too.

    Old tenant moved out a month ago, so they put the property back on the rental market. 19 groups of people visited the property during the first open inspection. 8 applications were submitted.

    PM was so excited and told my friends that she "hand" picked the best applicant and rented out that property to her.

    I believe, she had to contact all applicants and let them know, that competition is high and ask whether they would like to offer a higher rental rate.

    Also turned out that the tenant lived with her parents before renting this property, and she didn't have a rental history.

    Now my friends are being inundated with requests like, hot water is not hot enough, air con is not working, oven is not working, lock at the security door is broken. And each of the requests is resolved by educating her how to use the appliances.