Property Inspections - Onsite managers

[Wazza007]

Hi

Is this typical for a property that has an onsite manager?

We went to Brisbane on Tuesday to look at some potential IP's the first place we looked at was in a managed complex with an onsite manager - it was a 3 bedroom townhouse.

The onsite PM and REA went to great lenghts to tell us how good the onsite PM was etc etc when we walked in the first thing we noticed were cobwebs with bugs stuck in them all around the ceiling, the carpets were filthy and when we went upstairs there was about an inch of built up toothpaste and soap in the bathroom sink.

We questioned the PM how often inspections take place and she said 2 times per year and we then commented on the condition of the TH cleaning etc The Onsite PM told us it wasnt her place to tell people how to clean and we all have different standards and ours are probably higher than normal

Is this a normal attitude for onsite management or are my expectations too high?? I was thinking that they know we are coming to inspect the property with an open mind to buying, that they would at least ensure the place was clean??

I have to say that during the inspection the REA was fantastic and had a word to the onsite PM.

We could buy the place and organise a RE to PM but that may put us offside with the onsite manager. So we are just going to walk away from this one.

 

[shazza]

It wouldnt say it was typical at all.
Onsite managers are really just like PMs - some are great, some indifferent and some really bad. The logic of onsite managers is that because they live onsite and have more a financial interest they should be better. But because people are involved sometimes situations defy logic.
We had a former onsite manager who apparently was drunk most of the time and more interested being friends with tenants then looking after the owners interests.
Lesson learnt - what onsite managers as much as you would a PM.

Also the only prerequisites for onsite managers is to do a really simple course (costs about $1000) and have the money to buy into a complex (anywhere from $300k to over $1M. No checking for ability/aptitude/experience.

Its not hard to use an outside PM - the smart onsite managers work to keep all lettings inside (more money for them). It can be more difficult to get rid of incompentent onsite managers from complexes - like all strata systems most people have to agree.

But if you're gut instinct is to stay away I'd go with that.

cheers Sharyn

 

[Wazza007]

Thanks Shazza

I should have added later in the day we inspected a couple of other properties in complex and the onsite PM's we terriffic - just from looking around the grounds and the Town Houses themselves there was a huge differance.

 

[Dos]

Wazza007,

Can I ask what suburbs you may have looked at?

My parents are on site managers (very good from all accounts, no bias) and last time I spoke with them they had 1-2 for sale?

Might be of interest if you are looking in there area. They are at Runcorn/Eight Mile Plains.

Dos.

 

[Wazza007]

Hi Dos

The bad experience was Nth Gold Coast and the good managers were in Runcorn, Kuraby and Sunnybank Hills.

 

[buzzlightyear]

I own at 3 br townhouse on the Gold Coast (Coomera) and the on-site managers are very vigilant in maintaining not only the common areas, but on-time rental payments and inspections twice yearly. They also have arranged a grounds maintenance fee which outsources normal tenant responsible grounds maintenance to a professional.

Given that they pay not an insubstantial amount for the management rights, it would see difficult to understand why they would have an approach that would not want to ensure a desirable place for tenants and propspective tenants to live, keep their landlords happy through minimal vacancies and ensure the aesthetics of the site are maintained

When the previous tenants moved out (end of lease), they actually had already organised new tenants and moved in the following day. I had never experienced an end of lease where one tenant leaves today and the new tenant moves in tomorrow.

 

[ChrisOs]

On-Site PM

I have been using an on-site for a couple of months now after having used two other PMs for the same property.

I have noticed a couple of immediate benefits:

1) Relatively trivial maintenance is very cost effective. As an example, there are some down lights above the stairs that require either a very large ladder or an extension pole to be able to replace the lights. Should the tenant try this and have an injury, then there could be terrible consequences so I arrange for them to be replaced "professionally". The on-site manager replaced two lights recently for a total of $10. An electrician probably would have charged somewhere in the vicinity of $70 call out fee and maybe $10 per bulb, then 30 minutes labour. Even a "handy person" would have charged a minimm of $60.

2) As they are not required to register for GST, there is no GST on the management fee, placement fee, postage, maintenance etc.

As they regularly walk around the complex, in theory they keep a good eye on my place as well. It is too early to tell if that is actually the case, but during a visit to the complex last year, the whole place looked much better kept than the previous year, when other on-site managers were in control. I just hope they keep up the good work!

What advantages have others come across (or disadvantages)?

Regards,
Chris.