What constitute a good PM?

[Telejazzer]

Property Manager that is. I did a search and there seems to be a few threads asking for good PMs in their areas.

So what makes a good PM in your opinion. This question is for both investors with PIs and PMs on this forum.

Cheers.

 

[Beau Miller]

Hi Telejazzer, thank you for the oppourtunity to respond.

A good PM will have an invested interest in managing your property. ie. some sort of bonus structure or wage based apon their ability to earn your business and retain your business. Even profit share in the rent roll.

Secondly, they will know the legislation and have access to all the tools of the trade, or know where to find them when their needed. If they know how to use the computer program that the offices uses they are winning half the battle.

There are other things to look out for within the office;

- How many properties managed by the office?
- How many properties per property manager?
- Do they have experienced back up staff & does the licensee invest time in property management?
- Who manages the arrears and then pays the bills? is it your PM or is it someone else in the office or is the role split?

There are two ways to run an office, portfolio or task based. In a task office you will speak to between 3-5 different people depending on he size of the office. Portfolio, youll speak to 1 pm and probably have a trust accountant that pays the bills.

Also, look for a PM that is not afraid to have the hard conversations, admit when they are wrong and do what it takes to right those wrongs.

Make sure they know your area or if they dont they have at least put in an effort to research it before you meet them.

I hope this helps & have a great day.

Beau

 

[Sez]

Hi Telejazzer,

Good question , If you've searched the forum then you will likely have found a thread that I posted about what landlords want from a PM and I tend to model my work structure on these responses!

A good PM is knowledgable - knows the legislation and also has enough experience to know the best way to acheive the outcome you desire.

Communication - Keeps in touch! If you have a PM who will keep you up to date with what is happening at your property and be in touch with you right away with any concerns - is up to date with rent increases and lease renewals (you shouldn't be chasing your PM for these).

Not Overworked - A good PM really should have no more than 120 properties to themselves. Every area is different as is every portfolio, 120 can be too much or not enough depending on your area and the quality of houses managed but don't be afriad to ask how many properties each property manager has. Most in my area manage well over 200 which leaves them time poor. Not a good thing for a PM!

Most importantly though you need a PM who you are comfortable with and can get along with. An investment property is a long term investment and you don't want to have a property manager who you can't stand to share oxygen with. You aren't going to feel comfortable with a property manager who isn't experience or knowledgable and you certainly aren't going to get along with them so gut feeling plays a large part in finding a good PM!

I think the only part of Beau's post which I don't agree with is the bonus structure - yes, this is a nice thing to have, however, part of a PM's job is growing business and maintaining a good business. Their reputation depends on their good service to you! I don't think that companies should rely so heavily on financial incentives for PM's to do what is already their job anyway. If it is something that the PM gets then thats great but I feel it has little to no bearing on how they will manage your property.

There are a thousand more things a good PM should do for you but these are all things which you can only really find out about them over time and with working with them.

Use your gut and take recommendations and good luck!!!

 

[Jamie M]

When you don't need to think about your IPs and the rent is regularly revised. That's when you know you've got a good PM looking after things

Cheers

Jamie

 

[Jacque]

I know I wrote this a while ago about selecting an effective PM but it still applies today:

http://www.invested.com.au/67/selecting-effective-residential-property-manager-4169/