Property managers - is bigger better?

[dallee]

Hi

When choosing a property manager, could it be that a larger, more established company may be better at finding tenants, owing to their greater profile in the property market, and may even achieve a greater rent? Or does it tend not to matter? If specifics help, I'm looking at PMs in the Annandale area - Ray White Annandale vs a new company called Let's Rent that was recommended by my buyer's agent.

Any advice would be appreciated. I haven't contacted either yet, so don't have an estimate of what either charge, but perhaps a little extra for a bigger company with a larger client base could be worth it?

Cheers, Dallee

 

[alexlee]

When choosing a property manager, could it be that a larger, more established company may be better at finding tenants, owing to their greater profile in the property market, and may even achieve a greater rent? Or does it tend not to matter? If specifics help, I'm looking at PMs in the Annandale area - Ray White Annandale vs a new company called Let's Rent that was recommended by my buyer's agent.

Any advice would be appreciated. I haven't contacted either yet, so don't have an estimate of what either charge, but perhaps a little extra for a bigger company with a larger client base could be worth it?

I don't think so. It's really more about how good the individual PM is. I just went through the renting process. Some agents called me to tell me about new listings, some didn't even return my calls. These days most people use the internet to find places for rent. Personally, I didn't look at the agency name.

The best PM I have is a small agency (not a chain). Always returns my calls, updates me without prompting, gives me whatever information I need.

Why don't you do a secret shopper thing and call asking them about renting a place like the one you bought? That would give you an idea about their service.
Alex

 

[Xenia]

Bigger is DEFINATELY not better!

Tenants as well as purchasers tend to do searches in the areas they want and choose the house they want to buy or rent. There is no evidence to suggest that people tend to be loyal to any company over another when choosing a rental or purchase property.

Go for an agency that specialises in rentals and not sales.

Here is a list of questions you could ask
http://www.adprop.com.au/cgi-bin/page.cgi?id=288

Most agencies that are not investors tend to underrent properties. If you hear the words "we are not putting up the rent because they are good tenants" run don't walk away, that is NOT investor language!!!

 

[dallee]

This is really good advice, thanks. The fact that the smaller firm is sending me a written proposal seems a good sign, but I'll put these questions to them. Thanks for replying, Dallee.

 

[Kevin Hockey]

Bigger is DEFINATELY not better!

Go for an agency that specialises in rentals and not sales.

Most agencies that are not investors tend to underrent properties. If you hear the words "we are not putting up the rent because they are good tenants" run don't walk away, that is NOT investor language!!!

Bigger, higher profiled or whatever you want to call it is irrelevant, all down to experience and skill of your PM.

Can't agree with Xenia on her next point though, sorry Xenia. An agency who does more than just Property Management still "specialises" in Property Management. They may also have more support structure, market place knowledge of all facets of the real estate process and the ability to offset losses if necessary rather than run a lean management business. I was able to run my Property Manangement dept at a loss for a long time with high staff levels whilst building it to ensure my clients received a first class level of service because it could be funded by the profit of the sales dept. We won national awards for our Property Managememt as testimony to that.

With absolutely no reflection on Xenia's business, who appears to also run an excellent property management business, I don't accept the notion of Property Management "specialists" as being a better model.

I have the same answer for which is best by saying the answer is much the same as when Franchisees ask me is and experienced agent or newbie better to employ. My answer is, just get the right person with the skills to do the job.

On Xenia's last point, please take her advice without hesitation. In fact don't just run, sprint immediately and don't look back.

Kev
www.gogecko.com.au