Property Manager Recommendations - Gladstone, QLD

[DavidMc]

Hi guys,

I'd like some property manager recommendations for Gladstone.

My current property managers are too 'pro-tenant', do not manage tenants expectations well and their management of the expenses is out of control. In fact, I feel they work against me as the 'evil interstate landlord'.

I have just been told my tenants are moving out because I do not spend enough on maintenance. In the 2013 year, I spent an average of $100 per week per property on repairs and maintenance!

The properties are around the $550k mark, were purchased in excellent condition, were previously loved only by owner occupiers, built by local long term quality builders (not the fly buy nighters that came into town) and are 6-8 years old. I spend over $5k on each per annum!

I know this can be caused by 'bad luck' but in all 6 properties I know these guys manage for friends and family it's the same situation.

Thank you!


David.

 

[norwoodman]

Hi guys,

I'd like some property manager recommendations for Gladstone.

My current property managers are too 'pro-tenant', do not manage tenants expectations well and their management of the expenses is out of control. In fact, I feel they work against me as the 'evil interstate landlord'.

I have just been told my tenants are moving out because I do not spend enough on maintenance. In the 2013 year, I spent an average of $100 per week per property on repairs and maintenance!

The properties are around the $550k mark, were purchased in excellent condition, were previously loved only by owner occupiers, built by local long term quality builders (not the fly buy nighters that came into town) and are 6-8 years old. I spend over $5k on each per annum!

I know this can be caused by 'bad luck' but in all 6 properties I know these guys manage for friends and family it's the same situation.

Thank you!


David.

For a property of that age, $100 on repairs and maintenance is excessive. What sort of repairs were you having to do?

 

[DavidMc]

Wow.... where to start, it's a huge list.

- New pool cleaner
- I pay for lawns mowed ('that's what tenants expect up here').
- I pay for all pool maint and chemicals (see above)
- $2.2k ripping up carpet and holes in plaster to find a leak that could not be found,
- New oven (because the glass in the old one slipped - 'it's a safety issue, it could fall out, smash and cut the tenants) - old one was a $2k Ariston (on par with Miele) brand
- $600 'bond clean' for the property post settlement (even though the previous owners had cleaned it well after moving out, to make it 'nice' for the tenants and it was 'dusty' because it sat empty for 3 weeks...)
- $150 handyman because a drawer was stiff to open
- $250 to adjust/fix the pool gate which does not auto-close anymore
- Requested to pay a $100 to have an electrician around to show the tenants how to use the oven, they thought it was broken, needed to put the timer on
- $??? for electrician to remove old light globes because they were difficult to remove
- BOTH garage door auto motors full replacement - $500-700 each, door would not close, 'safety/security issue' written on quote in capital letters.

Just the tip of the iceberg. The list goes on.

Some of these legit, some of them not, most of them poor value. I just felt there was no 'filter' on any of the tenants requests and that the day I say no to a $600 quote to change the blind wands I'm the evil landlord that doesn't maintain the properties.

Note, my Narre and Carrum Downs properties, much older and less nicer properties - $0 repairs and maint for the same year (and most years).

 

[DaveM]

Sounds to me like the agent had some back deal with trades and put lots of work their way in return for a cut of the $.

Or maybe I am too cynical

 

[DavidMc]

Sounds to me like the agent had some back deal with trades and put lots of work their way in return for a cut of the $.

Honestly, if I were to guess it, there are a few things at work here:

1. In all property markets, just getting the first available/Googled tradie in to fix something, without scrutinising the price or value, makes life easy for the PM, tradie and for the tenant who all regularily interact in person and on the phone. Even if it's a full replacement of a garage door motor ($600) where it may have just needed a new chain ($200). Life is good and everybody (PM/Tenant/Tradie) is happy except the landlord (who has no real way of knowing he just got ripped $400). The busier or more junior the PM, the more this happens.

2. In Gladstone, the Industrial boom city (not so much now!), there are buckloads of money being thrown around. This leads to a 'oh, just get someone in to fix it, don't worry about the cost, charge it to 'the company'' attitude in the area.

3. Due to extreme lack of supply housing in the past, rents had been up to $1,100pw (for a $600k house, for example). Tenants protest this high rent with frivilous maintenance requests. I had a good chat with a local long time electrician and he said the number of times he's been called around to change a lightbulb and other similar stupid call outs had skyrocketed. Tenants expect their properties to be 100% perfect at all times, even right down to a draw in a laundry that is a little stiff to open (handyman - $150).

4. Due to extreme lack of supply of tradespeople (who were sucked up by the big miners), the cost of trades had gone through the roof. Now the area is in a downturn and more competition the PMs need to crunch these same guys down on their quotes, just as I have been crunched down 40% on my rents - an awkward task for the PMs, much easier to just pay the quote and have the LL pay.


I don't believe there are any kickbacks.

All of these points make a PMs job quite tough in this area. They have to be aware of these factors and have the courage to deal with these sometimes awkward situations.

 

[Angel]

The same has happened to us in the past few months. Our garage "repairman" wanted $2400 for all new motors and doors too. He simply told the Pm that all the ones installed in the entire street are cr*p and should be thrown out and replaced. Did she discuss it further with him? Last we heard he had "temporarily" fixed the doors.

I'm so over being seen as a never-ending pit of $$$