I posted this previously, but think the topic subject wasn't as accurate as it could be. Hope the mods don't mind me re-posting?
Hello everyone
I regularly see people asking for recommendations for PM's in their area, so I thought I would put some questions you should be asking / things you should be looking for. Hope this is useful!
Broadly, a Property Managers role is split into 2 segments, securing a tenant (phase 1), followed by effectively managing your property.
Securing a Tenant
In my opinion, the most important stage - if this is done correctly, then the management is a much easier process.
Marketing - it's pretty obvious, but the more effective the marketing, the larger the pool of prospective tenants. As a minimum, you should expect professional photos, and a benefit driven ad for your property.
Ultimately (if available in your area), you should look for professional photography, high definition video tour, creative copywrite for your ad, signboard, and a minimum schedule of weekend and mid week open homes.
Ask your property manager what their process is in relation to applications from tenants, processing timeframes, and checks. Your PM should set a deadline for applications to be submitted to their office (ours is 10:00am Monday morning, following the Saturday open homes).
We then process applications, and have our shortlist ready for presentation to our landlords no later than 2:00pm (Monday) - we can then offer the property to the tenant, with contracts to be sent by by 10:00am the following morning.
This is best practice, but takes a very system and process orientated agency to deliver - the benefit is most agencies do not do this, so we get pick of the tenants while the other agencies are taking their time offering properties.
Question your prospective PM on their process and system, and if they don't have one, steer well clear.
Management
It all boils down to systems, processes, experience, office environment and the principal of the agency.
Systems - what systems do they have? Is everything process driven, or do they react to situations? Ask what systems they have for arrears, for maintenance, rent increases, maintenance issues. If they can't outline what process they run for each of the above, then they will be a fire fighting, reactionary agency, which is definitely not what you want!
Processes - falls in line with the above.
Experience & Office Environment- coupled with attitude. I think it's a good idea to go into the PM's office, and ask for a tour. See what the collective vibe is like in the office. Does it look like an energetic, fun office, or are the PM team stuck in a dingy back section of the office - if so, you can be guaranteed they are not given the care and attention they need to be highly effective and enthusiastic PM's.
Do they love property? End of the day, they are looking after your investment property on your behalf. If they are not passionate about the industry, then they will not be overly passionate about achieving the best returns for your home. Also, passion translates to the PM's relationship with the tenant, which is an oft overlooked part of the job.
Happy tenant = happy landlord!
Agency Principal - is the agency principal actively involved in the PM section of the business? Generally, an agency principal will be focused on the sales side of the business, leaving PM to fall by the wayside.
The ideal scenario is to find an agency built around the PM department - without trying to sell myself here, I am the Principal of my agency, and my passion is Property Management. I am an investor myself (10 IP's), growing at a rate of 2 - 4 per year.
I love property management, and my staff do as well, which makes all the difference - we seek out and resolve any potential issues, so our landlords are protected from the stress and hassle of the day to day management of their property.
I hope this helps those who are looking to engage a PM.
Hello everyone
I regularly see people asking for recommendations for PM's in their area, so I thought I would put some questions you should be asking / things you should be looking for. Hope this is useful!
Broadly, a Property Managers role is split into 2 segments, securing a tenant (phase 1), followed by effectively managing your property.
Securing a Tenant
In my opinion, the most important stage - if this is done correctly, then the management is a much easier process.
Marketing - it's pretty obvious, but the more effective the marketing, the larger the pool of prospective tenants. As a minimum, you should expect professional photos, and a benefit driven ad for your property.
Ultimately (if available in your area), you should look for professional photography, high definition video tour, creative copywrite for your ad, signboard, and a minimum schedule of weekend and mid week open homes.
Ask your property manager what their process is in relation to applications from tenants, processing timeframes, and checks. Your PM should set a deadline for applications to be submitted to their office (ours is 10:00am Monday morning, following the Saturday open homes).
We then process applications, and have our shortlist ready for presentation to our landlords no later than 2:00pm (Monday) - we can then offer the property to the tenant, with contracts to be sent by by 10:00am the following morning.
This is best practice, but takes a very system and process orientated agency to deliver - the benefit is most agencies do not do this, so we get pick of the tenants while the other agencies are taking their time offering properties.
Question your prospective PM on their process and system, and if they don't have one, steer well clear.
Management
It all boils down to systems, processes, experience, office environment and the principal of the agency.
Systems - what systems do they have? Is everything process driven, or do they react to situations? Ask what systems they have for arrears, for maintenance, rent increases, maintenance issues. If they can't outline what process they run for each of the above, then they will be a fire fighting, reactionary agency, which is definitely not what you want!
Processes - falls in line with the above.
Experience & Office Environment- coupled with attitude. I think it's a good idea to go into the PM's office, and ask for a tour. See what the collective vibe is like in the office. Does it look like an energetic, fun office, or are the PM team stuck in a dingy back section of the office - if so, you can be guaranteed they are not given the care and attention they need to be highly effective and enthusiastic PM's.
Do they love property? End of the day, they are looking after your investment property on your behalf. If they are not passionate about the industry, then they will not be overly passionate about achieving the best returns for your home. Also, passion translates to the PM's relationship with the tenant, which is an oft overlooked part of the job.
Happy tenant = happy landlord!
Agency Principal - is the agency principal actively involved in the PM section of the business? Generally, an agency principal will be focused on the sales side of the business, leaving PM to fall by the wayside.
The ideal scenario is to find an agency built around the PM department - without trying to sell myself here, I am the Principal of my agency, and my passion is Property Management. I am an investor myself (10 IP's), growing at a rate of 2 - 4 per year.
I love property management, and my staff do as well, which makes all the difference - we seek out and resolve any potential issues, so our landlords are protected from the stress and hassle of the day to day management of their property.
I hope this helps those who are looking to engage a PM.
