What do you want as a Landlord??

[Sez]

Hi Guys,

Just after some insight from some of the investors on this site, especially those who have invested in the Frankston area.

I have started work with a small portfolio and I look forward to increasing it's size over the coming years. I always respond to my landlords, make sure routine inspections are done on time and keep in touch to update landlords on any ongoing issues. At the moment I wish to build my portfolio from small to medium before bringing on a part time assistant. I have a referral offer for my current landlords and also for local businesses.

I take pride in a job well done but my question to you all really is, when you are looking for a really good Property Manager what do you want? I want to ensure I am ticking all of these boxes and in my opinion, it doesn't matter who you are, there is always room for improvement.

Can't wait to read your comments and suggestions!

Thanks guys!

 

[Monopoly]

Hi Sez,

As a landlady to several properties along the Mornington Pen (including Frankston Sth, Mornington and Mt Matha) I need a PM who is reliable, professional but above all very communicative in keeping me up-to-date with what is happening (as it's happening) with any/all of my investments.

I need that person to be "on the ball" and aware of the RTA 2007 rulings, making sure that he/she knows what to do, in certain situations ie. late rentals, notices to vacate, condition reports etc. He/she needs to be able to make spontaneous decisions on my behalf on small "emergencies" putting out spot fires (figuratively speaking) ensuring minor repairs to the property (under $500) are addressed quickly, with/without my consent but not without my knowledge of same.

I want someone who is friendly, honest, professional (looks the part) and who comes across well to both myself as the property owner and to my tenants. I would also want this person to have a good local know of, and rapport with professional trades people (plumbers, sparkies, handymen) who will respond to his/her call for work in a timely manner.

Given all of that, anything else would be a bonus!!

P.S. Good luck with your new venture, PMing your own properties is hard, doing it on someone else's behalf takes nerves of steel!

 

[buzzlightyear]

Sez, I am sure you will get some decent responses, but my suggestion, is to go through all the Property Management section/threads and see the consistency of issues that have been raised over a number of years. You will soon enough see some very consistent themes.

Not surprisingly, but maybe to others, there are only really 3-4 (max) key themes that are relevant for someone looking at developing property management competencies.

Maybe it would be interesting to hear from you, what you believe are the key PM competencies, key personal/professional attributes for those performing PM roles (from the tactical to more strategic)

 

[RumpledElf]

Our local PM (there is only one. One. Such choice!) charges 9% plus inspection fee plus paperwork fee plus 2 weeks for this, one week for that and all plus GST ... which wouldn't be so bad but the last tenant I had was allegedly let - by that PM - get thousands behind in their rent and noone ever thought to put them on Centrepay, despite that being the best way in the known universe to keep people on welfare up on their rent. So what the hell are you paying for then??

If another PM popped up in our area that was cheaper and actually in the modern age for emailing stuff, taking decent photos and setting up *gasp* automatic rent payments I'd be tempted. If I end up a landlord again in the next few weeks, however, I'll be self-managing again. I wish someone from this forum would come set up shop out this way, a duopoly would be much nicer than a monopoly.

 

[Sez]

Thank you guys!

Buzzlightyear - The main issue I see with landlords in this forum is the late rent and the confusion for who is responsible for what maintenance!

I have for my career in property management strived to be everything that I believe a good property manager should be. I studied hard and got excellent marks when doing my Agents Rep and keep a copy of the RTA in my drawer to refer to at any given time. so in response for the personal skills and attributes of a good PM - I can tell you what I have worked on.
- Time management
- Excellent communication skills
- decision making
- Knowledge of the RTA
- Willingness to take action without needing your hand held the whole way
- Communication again!
- A friendly manner
- Someone who acts on problems as they arise, not deciding they are too hard and putting them off for tomorrow.

I also think it is important to provide professional advise as that is what my job is, I may not always tell a landlord what they want to hear but I will tell them what they need to hear - the truth! If the heater breaks down in winter - yes that is an urgent repair! If they are asking a very unrealistic price for their rental then that is something I will tell them too....nicely mind you!

As RumpledElf pointed out - I think fees come into it too. I don't think you would be as upset by the fees if you were getting the service to go with them. We keep the fees down and only charge management and advertising / Letting to new tenants. The rest of it is only as charged. e.g VCAT fees or registered post. No statement fees, End of financial year fees etc. I feel these muddy the waters and as soon as there is any issue at all, they are the first thing to come up!

My background is that I have been a PM for a couple of years now but working for a larger company where the environment is different and all of the stress is on the numbers. I am now in the position where I can run things the way I think work to do this job really well. I have found excellent trades that I have worked with for years so I am glad I don't have to find new reliable tradies! I have a good knowledge of the area so I'm not out of my depth there. My main concern is that the things I want to try here, well, I may think they are a great way of doing things but at the end of the day it isn't me that needs to be happy , its my clients!

Monopoly - You have described exactly what I have made every effort to be, it is really nice to see that I haven't been aiming in the wrong direction all these years!

Thanks again guys, I love the feed back and anything that you say will definately be taken on board. I have long term goals here and I only hope to reach them by doing my best to be the best!

 

[Ocean Architect]

1) good communication/record keeping.
2) good crew of handypeople who also communicate well, do work reliably, fast, well, and don't charge the earth.
3) active in renting units out, preferably by demonstrating commitment by putting in money out of their own pocket for advertising (that they can then charge back) to get it rerented FAST.
4) meticulous in photographing/inspecting properties and keeping appropriate amount of bond for damages.
5) active and knowledgeable in how much to increase rent, and when.
6) professional and communicative to tennants to keep them happy.
7) alert and proactive in regards to tennants leaving, and who lines up prospective tennants before the old one leaves so as to minimise unrented periods.
8) preempts problems, and takes care of them before they become real problems ie "there are some small stains on teh ceiling, so there might be a small roof leak - lets get it looked at NOW, before it becomes a major roof leak plus associated damages"
9) someone who piggybacks maintainence work sensibly ie if a ceiling fan blows up and it's going to cost $150 in labour for replacement, I want a PM who says "lets hire a sparky for half a day for the same money, and get him to change all of the ceiling fans ($50ea materials) and regulators in one hit so that we aren't fixing one fan at a time every 3 months"

In short, someone who looks after the property the way that I would look after the property, who puts themselves in my shoes and who looks at property management actively, not reactively (actively to me means looking at the big picture and spending money/minimising problems/finding backup tennants wisely. reactively to me means someone who thinks their job is to solve individual problems ie one ceiling fan at a time, one tap fitting at a time, waiting for a tennant to leave before finding a new one/waiting for me to ask to increase rent before actually suggesting it etc)

If anyone finds such a PM, let me know, because imo they're hanging out with unicorns and the loch ness monster - everyone knows what they are, but no one has ever seen one

 

[Sez]

Thanks Ocean,

I think I tick all of your boxes! I'm especially particular about preempting problems. I recommend all of my landlords book a re-occuring gutter clean with my handyman to help solve the most common cause of roof leaks in heavy weather and I do try to have them service gas appliances every 2 years to try and solve the issue of dangerous appliances.

I'm pleased to see from the responses that I am heading in the right direction I think!

Thank you again guys, I'll keep on trying and hope that by word of mouth people start to hear about me!

Still open to more suggestions as always.

 

[The Fence]

finally.....a breath of beautiful fresh air...well done. I wish they were all like you!!

Then I might finally hire a PM instead of doing all those things myself...

 

[Doovalacky]

Biggest thing for me is inspections and communication.
Not all these issues are with current agent, I have used a couple over the years.

I don't want to be called by the tenant direct about faults that the agent has not passed on to me. Or find out that they are 4 weeks late in rent when I look at the end of month statement. Finding out 1 day before a court case that a date had been set, please come in today and sign some forms for tomorrow.

I had one excellent PM that typed her reports. A lot was probably copy/paste to save time but at least I could read it. Unfortunately she left and I am now back to deciphering scrawl and trying to figure out if there is any issues noted.

Proper inspections. "some marks" vs 1m2 of plaster missing is a big difference.
Digital photos are easy!
Checking walls behind showers etc for paint/plaster bubbling due to leaks.
Looking behind sheds etc to see if tenant has piled grass clippings against the wall to rust it out.

Preparation for court cases, a summery sheet of key data so you don't spend 10 mins flipping through a file every time the magistrate asks a question and **** him/her off.

My current one called me last Friday saying that the tenant was suing due to me throwing out the crap she had left behind.
Turns out it was the indemnity certificate I had applied for so I could legally dispose of the abandoned goods. How about reading better, and also why the hell had she never seen one before?

 

[ozk]

Ocean Architect has said it all.

 

[buzzlightyear]

The squeaky wheel gets the oil

All valid points raised.

The quest for the Holy Grail of PM's is admirable, however in reality even the best PM's will not meet all of your expectations all of the time. Therefore to optimise your relationship with you PM, you need to manage them as well. So that means not only talking to them when there is an issue that needs managing. I always knew that when I received a phone call from most of the PM's I have used, something was wrong. Changes the dynamic of the relationship.

Understanding when they will respond to your query or issue and following up with them politely of they slip their timing. So they know, if they commit to getting back to you by close of business today, that's what you mean, even if it is to say, things are still moving/progress and there is no final resolution or answer. Ask them questions about the relevant tenancy issue, even if you know the answer, have the debate and put alternative options forward. Their responses will unveil both technical / professional knowledge but also soft qualities that will be important in managing tenant relationships.

A PM managing say 70-100 landlords, will overtime, if they are good, get to their preferences. Even if these issues are discussed at the time of engagement, it still takes a little time to 'bed' the relationship.

The sales sides of REA is generally better at the realtionship stuff, although generally over a much shorter but more intense period. I do not see this competency being practiced as well in the PM area. Not surprisingly, relationship management imo, is the biggest area of improvement and professional development opportunity of all in PM'ent.

 

[Sez]

Thank you everyone! My quest may be in vain but I will continue to try!

The best examples I have seen recently are what not to do examples. My partner and I are currently looking to rent a property and....well...I can understand how so many Agents in the area got such a bad name! Some of the excuses I have heard are pitiful!

So while I am saddened that at least for now, people will think of me as PM and apply some rather undesirable traits due to my occupation I'm doing my best to change those opinions by my actions. who knows, maybe you guys will hear about me one day down the track and it will only be nice things!

I really appreciate all the input, notes have been taken and I will apply all of these things to my growing list of "the best way, not the quickest way"!!