Most important Property Management Criteria

Discussion in 'Property Management' started by JustRent, 20th Dec, 2010.

?

Most important Property Management Criteria?

Poll closed 19th Jan, 2011.
  1. Fees

    35.3%
  2. Locality

    25.5%
  3. Personality of PM

    58.8%
  4. Personal referral

    19.6%
  5. Specialist PM Agency

    19.6%
  6. Agency name recognition

    7.8%
  7. Other

    25.5%
Multiple votes are allowed.
  1. JustRent

    JustRent Just Rent Sydney

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    I thought i would open a poll to see what all you property investors consider the most important criteria (and why) when selecting a property management agency:

    - Fees
    - Locality
    - Personality of PM
    - Personal referral
    - Specialist PM Agency
    - Agency name recognition
    - Other?

    Thanks
     
  2. Jonril

    Jonril Member

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    Bonbeach, Melbourne
    - I selected other along with fees;

    - My perception of how likely agency is to attract suitable tenants
    - Agency collecting an paying me rent in a timely manner
    - Agency Managing the tenant and property competently.
    - Agency's PM turnover
     
    Last edited: 20th Dec, 2010
  3. Frizzle

    Frizzle My Father's Daughter

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    I feel that is extremely important to have someone that you can have a good rapport with, who is able to manage the minor issues without a fuss but to communicate when needed so that you know what is going on for the majority of time. And who will work immediately on any requests that you put forward.
    Fees do enter the scene as well, but am very happy to pay for good service. Sure outweighs having to cope with the stress factor of bad mangement.
    A well established agency where the staff turnover is minimal is a key factor as well.
    Frizzle ;)
     
  4. chilliblue

    chilliblue Member

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    How about communication and following instructions.

    Thankfully we have never had a problem with agents to date:eek: and all of ours are small specialist leasing agencies run by men and their families.
     
  5. skater

    skater Capitalist

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    I feel that your selection does not cover nearly enough.

    Fees are extremely important to me, as it is a large expense, especially over a portfolio of multiple properties, but that is certainly not the only factor. I feel the Agency needs to have a local presence and employ staff that are good at dealing with all the relevant "stuff" that needs doing.

    By that, I want my rent levels checked to see if they are at market rates, I want a PM that will dissuade tenants from making requests, I want repairs dealt with in a timely manner, I want all notices sent out as soon as possible, I want those notices acted on to minimise any losses to myself, I want communitcation, I want minimal staff turnover, and much, much more. :D
     
  6. jaycee

    jaycee Member

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    All good that we know what we want or need.. but does anyone know how to improve their chances of actually getting it !
     
  7. Rixter

    Rixter $uper Investor (Retired)

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    Inform the PM what is expected of them as a manager. Should they not deliver they will lose management.
     
  8. jaycee

    jaycee Member

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    I thought we were talking about how to select a property management company which will meet any such criteria...
     
  9. kathryn d

    kathryn d Member

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    I voted "Personality of PM"
    but for us, that means to be able to trust them.
     
  10. NBS

    NBS Member

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    I'm in the process of selecting a PM and one of biggest issue for me is TRUST and can I talk to the person so I selected "personally of PM" in 1st place then 2nd Fees.

    The current fees are 7.5% which seem to be standard by the area agents.

    Brian
     
  11. cmason

    cmason Member

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    I voted other. For me responsiveness is important even if it's just a "I'm onto it" or "I'm going to be away contact blah in my absence" or "your tenant is late in paying rent so expect your payment to be late".

    Then actually doing as you say the first time and not after being followed up 3 or 4 times.

    Fees are not important to me, as within an area agency fees might differ by say up to 1-2%, on a rent of $300p/w that is only $3-6 I'd prefer to pay that little bit extra if it means I get better management
     
  12. Rixter

    Rixter $uper Investor (Retired)

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    For me the number one thing is communication. The PM contacting me when leases are due to expire, repairs/maint /tenant issues need addressing.
     
  13. Leghorn

    Leghorn Member

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    Most important is teanant selection. This can save you thousands in either repairs, hassles etc. There fees are then not an issue so this shouldn't be number one.
     
  14. kathryn d

    kathryn d Member

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    Sorry, but no such thing.
    If you've had enough tenants, you will get bad ones.
    It's a throw of the dice.
    You know how you can tell if a tenant is lying?..their lips are moving:D

    yes...tenants use the joke the other way around too
     
  15. cadence

    cadence Member

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    experience of the PM is important ... how long they have been managing the property and the size of their portfolio etc
     
  16. Nathan

    Nathan www.nathanbirch.com.au

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    They would all be the lowest importance.

    The highest importance is being able to get the rent. And be positive/proactive as equal number 1.
     
  17. JustRent

    JustRent Just Rent Sydney

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  18. .toe

    .toe Member

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    Here's an alternative sudgestion all together. Have the agent select themselves.

    After interviewing agents, sign a contract with the top preference, but go down to the section of the contract about terminating the contract. It will say something like 30 days notice, or termination at the end of the lease etc. Cross that out and write 14 days notice required to terminate. The agent who is truely capable of delivering all they've promised will have no problem with it, because they won't give you cause to use it.
     
  19. poppy

    poppy Member

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    I think the most important thing is a property manager who adapts to each landlord's "style". What one person finds an excellent property manager who keeps them informed and involves them in every aspect of tenant selection etc, another landlord may complain that this PM bothers them with constant phone calls over trivial or obvious matters and can't make a decision on their own.

    Ideally, the required level of communication and consultation should be documented in the agreement (perhaps via a series of yes/no answers to make it easier for the PMs) but I don't know of any PMs who do this.

    eg One PM I had had a policy of always contacting us to invite us to routine inspections. Well I don't want to attend those inspections ever, so please let me check a box so I don't receive these unnecessary communications.
     
  20. clk0

    clk0 Member

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    Just received this email from Real estate agent who is managing our rental property. Has anyone else receive this?

    Details as below:

    TO ALL OUR VALUED LANDLORDS

    RE: CHANGES TO THE TENANCY LEGISLATION EFFECTIVE JAN 31 2011

    WE WOULD LIKE TO INFORM YOU OF SOME MAJOR CHANGES THAT HAVE NOW BEEN PASSED REGARDING THE TENANCY OF ALL RESIDENTIAL RENTAL PROPERTIES AND WILL BE EFFECTIVE FROM 31ST JANUARY 2011.

    THREE OF THESE CHANGES ARE FRIGHTENING AND ALARMING FOR ANY LANDLORD.

    WE ARE PLANNING TO SIGN ANY TENANTS UP ON YOUR BEHALF WHO ARE NOT CURRENTLY IN A FIXED LEASE. WE PROPOSE TO SIGN ALL NEW LEASES FOR 12 MONTHS. WE WILL BE COMMENCING ON THE 4TH JANUARY 2011 WHEN WE RETURN FROM OUR BREAK.

    IF YOU DO NOT WISH FOR US TO DO THIS ON YOUR BEHALF PLEASE CONTACT US BY EMAIL OR PHONE ON OR BEFORE TO THE 24TH JANUARY.

    THE THREE MAIN CHANGES ARE:

    THAT ANY NEW LEASES SIGNED AFTER 31ST JANUARY WILL HAVE TO BY LAW CONTAIN ALL OF THE LANDLORDS CONTACT DETAILS, FULL NAME/S ADDRESS AND CONTACT PHONE NUMBERS FOR THE TENANTS.

    YOU WILL HAVE TO GIVE 90 DAYS NOTICE IF YOU DECIDE THAT YOU WOULD LIKE YOUR TENANT TO VACATE ONCE THE FIXED TERM HAS EXPIRED (PREVIOUSLY 60).


    THAT YOU WILL NO LONGER BE ALLOWED TO CHARGE YOUR TENANTS WATER USAGE UNLESS YOU HAVE HAD A PROFESSIONAL FIT WATER SAVING DEVICES TO EVERY TAP INSIDE AND OUTSIDE THE HOME.


    THEY MAY NOT SOUND TOO BAD, BUT JUST THINK HOW IT WILL FEEL IF YOUR TENANT DECIDES TO CONTACT YOU AT 2AM IN THE MORNING TO LET YOU KNOW THAT THEY HAVE A POSSUM IN THE ROOF, OR IF FOR ANY REASON YOU NEED TO SELL YOUR PROPERTY OR MOVE BACK IN YOURSELF TO HAVE TO GIVE THREE MONTHS NOTICE INSTEAD OF TWO.


    PLEASE DO NOT HESITATE TO CONTACT OUR OFFICE IF YOU HAVE ANY QUESTIONS OR IF YOU DO NOT WANT US TO SIGN YOUR TENANTS INTO A NEW LEASE.

    Kind regards