Property Management Redcliffe Peninsula - Deception Bay. Self management!

[beachside]

There are other names I could have given this thread such as:
"Fed up with property managers"
"The Redcliffe Peninsula - Deception Bay Investors co-op"
"Stuff 'em, lets do it ourselves"

You get the idea

I am on the 6th agency for property management in 7 years, all previous incompetent to some degree and given the flick. Some of these left me out of pocket, one who was so unbelievably incompetent (I disposed of after 3 months) I ended up lodging a complaint with Fair Trading due to what they cost me and their attitude - and got all $$ back . Don't mess with me

My latest agent, has made some effort greater than previous ones but I still have to chase. I was about to send an email to the agency owner who I dealt with originally, and give him a bit of a serve but just received an email from my PM with a promise to send through what I have been waiting for for over a week. (I am in-between tenants, issues with last tenants bond and what has to be retained/claimed for, finding new tenants etc.)

7 years ago before I bought this IP I was well aware of the advantages of using a PM versus doing it yourself. It seemed to be a no brainer - pay for a PM to look after your IP to avoid all the issues of self management. 7 years on and 6 PM's later in the Redcliffe - Deception Bay area, I have got to the point where I could not do any worse than use a PM. I would be comfortable in taking it on myself - subject to a few issues from living interstate. I spend just as much time managing the manager as it would take just to do it myself - why not eliminate the middle man!! In some cases I have ended up looking after issues myself - quicker. To put it bluntly - it is too time consuming to use a PM!

Now, I can arrange maintenance and repairs if necessary from interstate, and lets face it - most of my PM's have not had reliable trades people (handymen etc) that they can call on. But this is what I am paying for in PM fees! It's a bit like paying NRMA/RACQ membership for breakdown service but they don't have any reliable mechanics to send out if needed, and only searching for someone when they get a call - and a month later you are still waiting on the side of the road. I am usually one step ahead in repairs and maintenance so tradespeople are rarely needed but there are the unexpected issues or issues caused by tenants which are beyond your control.

Inspections - now that is a problem from interstate for self management.
Showing prospective tenants through house after last tenant vacates - another problem.

I don't have anyone I can comfortably ask or rely on to do this who lives in the area, unlike some people on here who do have friends or relo's near their IP.

So, the idea of this thread is to put feelers out for those who have rentals in the area and not happy with their PM, may consider self management to solve the problem but faced with the issues above of not living local.

I am thinking that we may be able to help each other out to an extent - it may not be on as regular basis as we would like if using a PM, but half the time the PM may as well not bothered - so not such a big disadvantage. And I think a better relationship/understanding is possible if dealing direct with tenant.

So a co-op is probably the most suitable term/name for helping each other out.

I am not jumping ship from my current PM at the moment but it may be necessary in the near or distant future and I would not waste time with any more PM's. I am interested in hearing from those who "may" be interested in helping others out in doing inspections, showing houses (it's bit more difficult), recommending tradies etc. (To the best of your ability, no liability - friend helping friend.) I am in the area usually once every 12-18 months, sometime more often when I have been renovating or passing through. I would be happy to do an inspection for someone and have done so, plus drive-by's for friends on and off this forum.

Just a thought at this stage, and this thread will stay alive for as long as I have an IP in the area so don't be afraid to add to it a year or so after last post. By looking outside the box for a solution to a problem we may find an alternative which fits us perfectly - and open to suggestions from anyone who has been in the same situation. Using a PM for limited services such as finding a tenant is one option, but if they are not looking after the whole package there is the potential for them to not care as much in selection and providing their real opinion if they don't have to deal with any problems which result once rented.

 

[twodogs]

Sorry to hear of your troubles and I can't offer any help. I sold out of Deception Bay last year, one of many reasons was the head banging experience with PMs.

Agree with all the points you mentioned, arrr brings back memories. Where are my pills.

Without a PM that can be trusted, remote management of property in most areas is hard, but I found the DB area even more difficult. Good luck

 

[Angel]

I am thinking about starting up a property inspection business which so far isn't quite what you are asking for. It would have to be AFTER I return from an overseas trip later in the year and after I do a course and get a license.

I too am chasing a couple of things with my PM but she is certainly a heap better than the previous ones I have used. I even gave her a good report when last month the company sent out a customer service feedback request.

 

[scoobadu]

I know how you feel. Having lived overseas for several years, I often got the feeling that the PM could be taking advantage of the situation, but it's difficult to find a new one while in another country.

Now that I'm back, I'll most likely switch to self-managed with the next property. I look at the skills I have personally and wonder how it is so hard for my PM to do what I pay so much for. Especially the fee for a statement that's automatically emailed with no human interaction or postage fee at all...

As a result, I've often thought about doing the registration course and offering a boutique management company that includes basic handyman stuff in the fee. Alas, the need to have a full RE licence has stopped me so far.

 

[beachside]

After 7 years and 6 PM's the idea of self management (if I lived closer) would come as a relief. There is actually a lot of time involved in just switching agents from interviewing PM's (phone or in person), discussing fees, reviewing and writing up additional/special lease conditions as required (for serious LL's), completing all paperwork, provide specific written instructions re management as discussed when interviewing ....all this before they start managing. This is the easy bit!

Dealing with PM's who are younger/considerably younger than yourself can be frustrating as their life experiences are limited compared to your own. You know not to stick your finger in the light socket, they are yet to understand why you believe this is a problem! As Scoobadu mentioned, you know what your skills are and to hand management of something to someone who does not appear to have the same is also frustrating.

The main issues with self management from more than 2-3 hours away are:

• Showing house to potential tenants, which can result in numerous visits over a few weeks.
• Inspections during tenancy.
• Follow up inspections if a breach requires a revisit to confirm breach rectified.
• End of lease inspection, follow up inspection if additional cleaning etc required.

If you had good tenants who were long term there would not be much need to visit house once rented, but it would take a while to establish this confidence and that the situation would not change. I have never had tenants beyond 18 months. There are many factors which can change a situation, from tenants personal life to external factors such as neighbours affect on the property.

As for what a PM is responsible for, and what you pay them to do, their ability slides based on the function required of them.

• Find tenant - straight forward, but effort/ability varies
• Collect rent - straight forward, some can be slack with chasing late payments
• Do inspections - vary from good to slack which can cost owner money and allow property to become scruffy quickly.
• Arrange repairs and maintenance. Sparky and plumber are reasonably easy, appliances a little harder, a handyman who is reliable is a challenge for many, as is someone to take rubbish away, and a reliable gardener etc. And at a reasonable price, not just at any price. All these are the bare basic trades required, but most agencies don't have these lined up ready when needed as is a necessity to do their job properly. I rarely need any of the above, but sometimes unexpected repairs are needed or due to tenant negligence/neglect.

I look after all rates and insurance etc, although included in management fee.

Sometimes you may not become aware of PM/agency deficiencies until they are put to the test. This might be after 2 weeks or 2 years, and sometimes never discovered until the next time you visit the property.

Angel, my PM is probably the same as yours. Makes an effort, not the quickest, needs to be chased so I know what is going on, challenged in arranging basic trades. I still have not had a response to my email of last Thursday, and I know it was read before open on Friday. Speaks heaps for the principal!

If only I lived closer, I could save myself a lot of time, hassle and money!

 

[damacc]

I too have a property in Redcliffe area and have now found a good PM after going through several. Some are great at the start and then they leave and the new PM in the agency just isn't the same.

I also started to keep a list of the handyman they used and whether they were good or not. When I switched to the new PM a few months ago and had an issue with the carpet they got a quote from their carpet man, and then I asked them to get a quote from the one I used with the previous PM which turned out to be cheaper, and I was also happy with his work so why not use him again.

So I'm creating a list of handyman, electricians, plumbers, etc and can use them whichever PM I go to.

 

[beachside]

You never know how a good a PM is until put to the test, and even then when you think everything is ok a visit to the house will leave you fuming. Some I have discovered how bad they are within 2 months, others 18 months.

Every agent appears ok in honeymoon period and usually try a little bit harder, except one who tripped up between the ceremony and the reception.

Damacc, I would be interested to know who your PM is, I have researched most, and had encounters with several. Passengers on the Titanic thought it was a great ship ......until!

I would also be interested in your list of trade and service suppliers. I rarely need them, currently only due to tenant negligence/neglect.

Send me a PM if you like, we might be able to help each other by sharing experiences etc.

 

[justjenny]

On the lookout as well

Hi there,
I have been looking at buying an IP in the Redcliffe or Deception Bay areas and also live far away in remote NSW. Reading about the troubles of other investors in finding a good PM is the only thing that's really putting me off right now.
I have 2 other IP's, both of which I initially self managed. However, since I have put one of those into the hands of a PM (a good one) and realised how much stress I have been relieved of, I wont go back to self managing any future IP's.
I don't have any property in QLD and no family/friends I would impose on to assist me in managing an IP, so I'm inclined to want to find a good PM BEFORE commiting to purchase.
Seems like there would be a great business opportunity there for an individual to JUST manage property?
Will keep watching SS for any good news.
Cheers, Jenny.

 

[beachside]

Hi Jenny

You cotton picking ......

Finding 'a' good PM in an area is not good enough as they may leave for many reasons and you are left without a paddle. I think it comes down to the type of area and tenants and the majority of owners of IP's in these areas as to the quality of management in the area. I think there might be a better chance of better management in general in inner/middle ring suburbs where prices are higher, higher expectations from owners/tenants etc. There is certainly no shortage of competition in the Redcliffe/Deception Bay area, but I feel it comes down to agents perception of people who rent and own Ip's in the area and then provide a level of service they feel they can get away with - which in some cases is sufficient, in others it is lacking.