Would you be annoyed at your PM for this?

[charliebean]

Since exchange on contracts my PM has had access to show my property. The property is in a high demand area and she assured me we'd get a tenant within days. On the second day of advertising we had two applications, she knocked one out straight away because of late payment on their ledger and 5days later I was still waiting for her to complete the processing of the second one (she said she was waiting for written references) tired of waiting I asked why the first couple where late in the payment and how often, did she ask them to explain or ask their current RE?. She said she didn’t know so I told her to find out, turns out it was only one late payment as they were away on holidays and lost track, they paid double rent straight away to make up for it. I told her to approve them, as I was happy with this.

Fast forward about two weeks and I emailed her to confirm if they'd paid the deposit and confirm that the lease was only 6 months. (When I engaged her services I explained we could only sign a 6 month lease or anything under 12 months as we have to claim the FHBG)

She said they were coming in shortly to sign a 12 month lease. I reminded her no this was not possible, I had told her I couldnt accept a 12 month lease and to ask them to sign a 6 month lease. It took her 2 days to find out from the tenant that they will only sign a 12 month lease and they aren’t going ahead. So back to the drawing board.

I personally feel 5 days to process and 2 days to get an answer and the like is too long to be waiting.

I guess I am wondering if I should ask her to now make this a priority to find a tenant ASAP, as there was no apology from her or encouraging words that she will look at this with urgency. I know that I am very impatient which is a bad trait of mine and I don't want to be unreasonably demanding of her.

There is 10 days till settlement, should I just chill or should I send her an email telling her I am not happy and to make it a priority?

 

[Marti]

My experience to get the best out of your PM you have to develop a good relationship if possible. A few years ago I would hammer away with emails that were ignored. Threatening to move the management to another PM in the area also got no response.

Then out of frustration I started to call and the whole relationship changed. The PM is now really attentive and looks after our interests really well. I often feel that although PM’s are acting for investment owners their allegiance sometimes feels to biased towards the tenant. This happens where they have rented several rental properties for one major company and where the company may flex its muscles if they don’t get the right deal on all the properties they have rented.

Also, PM’s can look after the letting and management of many properties so their time may be very limited.

 

[Sez]

Not a good oversight and I would be annoyed. Having said that, if you come down too hard it will likely not have the desired effect. Give her a call, be kind and polite but explain your concerns and just ask her where it is going from here. Her reaction should give you a good indication of what your relationship will go on to be.

 

[twobobsworth]

Where's the agent located & is it the same agent you purchased from?

 

[fokas]

So you told them that you wanted a 6month lease, and then they went ahead with a 12month lease?
I would have thought following instructions/requests was expected when you're using someone's services?

 

[sanj]

IF and i mean IF you clearly told them you could only sign a 6 month lease and they were about to sign up a 12 month on in addition to taking 7 days to process it, the manager is incompetent. get rid of her/him as you'll have to constantly supervise them which defeats the purpose of having a bloody manager

imagine if you hadnt been so on the ball and she had signed them up to a 12 month lease? you'd be in a bit of trouble re FHOG

 

[chilliblue]

What did it state on the managing agency agreement and was all following correspondance in writing?

 

[womble66]

So when is settlement?

If demand is high and vacancy rates are low it can take less than a week to find a tenants and get them signed up and into the property and start paying rent.

Your issue may also be that you only want a short term tennant which is a negtative if prospective tenants are looking for longevity in a lease.

If the PM knows that a tenant can't move in for several weeks then the urgency may not be there which is another issue.

Also a tenant who is looking for rentals ussually wants it now and not in month.

If the property ia available now and you are loosing money then I agree that the PM has dropped the ball and I would also be un happy with the situation.

 

[stan650]

If your property manager can't follow simple instructions then I would get rid of them. Sounds like they don't really take your investment seriously. I have been through incompetent PM's before and it will only get worse... especially when there is a major problem. There are plenty out there.
If you are going to stay with them then make sure everything is in writing. A phone call to follow up doesn't hurt either.

 

[Deltaberry]

I don't like using PMs, waste of time.

Everyone we've had for our buildings and houses has been a waste of time even talking to. If we were counting on the rent to meet repayments, we'd be in so much trouble.

 

[bradcon]

I am going to play devils advocate on this one.

1. Short term leases in a 'high demand' area could be an issue. Just because its high demend doesnt mean that the demand is for short term leases. It means you are probably looking for a select few people, probably someone building in or around the area. Your pool of potential applicants will be greatly lowered.

2. The turnaround could also be an issue. People coming out of the rental markets are usually cash poor (remember they might just have paid a substantial amount for the house currently under construction) so they barely afford to pay th eloan repayments on the new house PLUS rent on their old rental PLUS this new short term rental they might be looking at. (Does that make sense???)

Clearly your OM has dropped the ball in not following your instructions no doubt but the expectation on finding a tenant might be unrealistic.

Yes i am sitting on the fence on this one!

Good luck

 

[ACTInvestor]

While I agree with the points Bradcon made, it does seem that your PM has dropped the ball. The internet ad should clearly state 6 month lease. All my PM's offer a 24 business hour turnaround on processing applications. In my experience, after a Sat open viewing, I have always had applications to consider by Monday afternoon. The tenants then have 24 hours to pay their rent in advance and sign their lease. Further, why is your PM waiting for written references? Surely if they get on the phone to the referees they are going to get more accurate information in a more timely manner than written ones?

 

[Don K]

Does not sound good to me. How much notice do you have to give your PM in order to terminate their service? if you cannot terminate now you just need to hope you have someone by the settlement day. Seems better to call the PM than email for correspondence by the sound of it. You need to manage your PM somehow. No wonder some investors self-manage...

 

[INVSTOR]

Really bad service! While I was searching for a rental property late last year I noticed a couple of properties were advertised as "Short lease only of 3 months". That's how long I wanted to rent for but I found they got snapped up straight away. It may be worth considering advertising it as available for 6 months only. That way it will save you from dealing with applicants that are after a longer lease.