What role PM with High Maintenance IP?

[Goanna Girl]

Hi,

Please be kind, my first post here!

We have an old fibro house we brought two years ago for 110k, renting 150/wk. We knew it had been run down by by the previous owner but was essentially sound, but for the last two years we have had non-stop repairs meaning this property is very CF-ve (about 40%+ of rent in repairs).

My question is what role do you expect PMs to play when a lot of maintenance is required? I have previously asked the PM for a list of what is expected for the next 12 months, but instead we mostly just get items the tennent rings up about (excluding storm damage etc). I would expect a PM to be able to arrange a list of expected items for 12 months, is this expecting too much??

The latest report is a rent inspection at the end of the last quarter with the standard info garden ok, house clean info, then an email one week later saying the tennant had rung up saying the ceiling in the lounge is "crumbly" and she would like someone to look at it. I would have thought that this should have been brought up at the rent inspection, and also three months ago when I asked if there was anything we should expect.

What role do PMs play if you have a high maintenace property??

Oh by the way, we don't want to sell as it has doubled in value in two years...and does anyone know a good PM in Geraldton as we have been shifted to the office junior at our current place?

Cheers

Goanna Girl

 

[Rixter]

Hi,

Please be kind, my first post here!

We have an old fibro house we brought two years ago for 110k, renting 150/wk. We knew it had been run down by by the previous owner but was essentially sound, but for the last two years we have had non-stop repairs meaning this property is very CF-ve (about 40%+ of rent in repairs).

My question is what role do you expect PMs to play when a lot of maintenance is required? I have previously asked the PM for a list of what is expected for the next 12 months, but instead we mostly just get items the tennent rings up about (excluding storm damage etc). I would expect a PM to be able to arrange a list of expected items for 12 months, is this expecting too much??

The latest report is a rent inspection at the end of the last quarter with the standard info garden ok, house clean info, then an email one week later saying the tennant had rung up saying the ceiling in the lounge is "crumbly" and she would like someone to look at it. I would have thought that this should have been brought up at the rent inspection, and also three months ago when I asked if there was anything we should expect.

What role do PMs play if you have a high maintenace property??

Oh by the way, we don't want to sell as it has doubled in value in two years...and does anyone know a good PM in Geraldton as we have been shifted to the office junior at our current place?

Cheers

Goanna Girl

First off, welcome aboard the forum. A good PM should be doing everything you have asked of them. Mine do everything thats required to be done in the management of my IP. - thats what you employ them to do. In relation to repairs & future maintence issues they bring it to my attention and organise quotes to resolve any issues if I require it.

If I was you Id be finding a better PM.

Hope this helps.

Once again welcome aboard.

P.S. I used to live in Bluff Point , Wonthella & Tarcoola Beach many moons ago. What area you in??

 

[Goanna Girl]

Hi Rixter, and thanks for the welcome.

This one is in Beresford, two blocks back from the beach. I am currently living in the "hills" on 10ha in Waggrakine.

We used to have an excellent PM, also a friend but she left the industry. I have dealt with PMs in Perth and didn't think this was unreasonable, but I was wanting to make sure before talking about me expectations with a new PM. Now just need to find a good one...

Thanks

Goanna Girl

 

[Rixter]

Gero, has changed alot since I was there.left in 1992..What do you do up that way? I worked out at Greenough.

 

[Goanna Girl]

Yeah, lots of changes since I started coming to Gero in 95. Can't believe how many major subdivions still coming through (was out at the council offices last week checking them out), as well as the port expansions etc.

Hubby and I currently have a manufacturing business and young family, but he will probably accept a nice offer from a previous employer to return, as it will give us more family time and much more cashflow. I will then manage our property empire (well, soon to be!) as well as the rug-rat.

 

[crest133]

Hi Goanna Girl
PM's don't like high maintenance low rent properties, very time consuming and usually find themselves the meat in the sandwich - between owners reluctant to spend on an old low income property and demanding tenants. Usually older properties don't attract the best tenants either.
Not sure what a crumbly ceiling is exactly. Might not be obvious unless you live in the fallout.
PM needs to know your intentions with the property in order to focus.
Perhaps you want to slowly renovate, or you might want to limit expenditure and knock it down later. Although many PM's are very experienced and multi-skilled and constantly multi-tasking, not all PM's are building inspectors. They have their limitations.
cheers
crest133

 

[leapyeah]

This particular problem is something I have management input into daily in my job. Such properties are indeed often the bane of a property management portfolio, for several of the reasons already mentioned.

The "meat in the sandwich" analogy rings true. The property manager often unfairly wears the frustrations of both tenants and landlords of such properties. Naievety and belligerence are such an unattractive combination in a landlord....

Many landlords have not considered the ongoing maintenance costs involved with buying homes that are cheaper because the previous owners have not done regular maintenance. All that maintenance that has been deferred over the years has to be paid for eventually.

Suggestions: request a more thorough inspection by the property manager, or perhaps get an independent inspection with maintenance recommendations done by a builder. Then cost and schedule that maintenance over a timeframe.