Do rental management companies lack ethics and honesty?

Choosing the right rental management company is a complicated task nowadays given the large number of them offering rental management services. 

As rental property management companies begin to present themselves as being different to sales companies, it is good to remember that both must be managed by licensed real estate agents and adhere to relevant statutory requirements. In fact, every standalone office requires a licensed estate agent to actively operate and oversee the business. Is your property manager supervised by a licensed estate agent?

Rental management services are often overlooked by savvy landlords and investors in the pursuit of discounted rental management fees. Believe it or not ... some real estate agents and property managers are untrustworthy and dishonest. In fact, the Roy Morgan Image of Professions Survey 2014 (Australia) has confirmed that real estate agents rank among the lowest trusted professionals in Australia. A sample size of 644 men and women across Australia were simply asked to rate or score people in various occupations for honesty and ethical standards. Roy Morgan's survey concluded that, “Once again Car Salesman (3%, down 1%) rank at the bottom of the list – a position they have held for over 30 years. The only other professions in single digits for ‘ethics and honesty’ are Advertising people (8%, down 1%) just behind Real Estate Agents (9%, down 3%).” Number one in the rankings were nurses followed by pharmacists and then doctors. At the bottom of the scale were car salespeople (30th), advertising agents (29th)and real estate agents at 28.

Focusing on rental management fees alone will come at the expense of good quality rental management services. The classic catch phrase of, "pay peanuts and you'll get monkeys", might be a little far fetched but it does beg the question, are rental management services more important in the long run than cheap rental management fees? Given that real estate agents have consistently ranked in the lowest end of the scale of ethics and honesty it might be time that you reviewed your current services agreement with your existing rental management company. Perhaps it is time you reflected on the rental management services you have received from your existing property manager during the past year. It may also be a opportune time for you to visit some alternative rental management companies and seriously think about engaging a professional property manager from a credible rental management company who will deliver the proper and timely rental management services you deserve.

Wishing you rental success. 

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The top three questions to ask a property manager

The top three questions to ask a property manager

Posted on Tuesday, September 30 2014 at 1:48 PM

By George Kafantaris

Finding a great property manager is one of the keys to having a successful ‘set and forget’ investment.

It means you’ll be able to safely leave your property in someone else’s hands, knowing the rent will be in your account at the same time every week or month and the home will be well maintained, along with its value.

We’ve all heard nightmare stories about terrible property managers. So how do you find that gem of a property manager – one who has your best interests at heart and will go out of their way to attend to the small details?

What you shouldn’t do is just pick the one with the cheapest fees. Your asset is worth a lot of money and consequently you should be looking for someone who will provide the best service rather than simply charging the lowest rates.

You should interview a few different property managers before making a decision, and while there’s a raft of things you should find out before engaging the services of a particular property manager, here are three questions that are a must-ask.

1 How much experience do you have?

An experienced property manager will have thorough knowledge of the relevant rules and laws that affect your property and tenants. They’re also likely to have come across most scenarios regarding maintenance and tenant issues, so they’ll know the best way to respond and consequently be able to take the best possible care of your property. In addition, an experienced property manager will be able to identify a bad tenant right off the bat, which is invaluable to the success of your investment.

A property manager who has good experience in the industry will also be able to accurately gauge tenant demand for your property and set the right rental rate to attract tenants. They’ll also be able to conduct regular rent reviews and ensure the rent accurately reflects the market, including increasing the rate at appropriate times, which will give you the highest possible return for your asset.

Property managers who are committed to their career are more likely to go that extra mile for you and your property. But rather than simply looking at the experience of the individual property manager you choose, you can look at the collective experience of the team they operate in, as you’ll be able to access all of this expertise. 

2 How many properties do you manage?

It’s the norm for property managers to handle around 100 properties, unless their duties are split between other team members. Some companies have leasing consultants as well as property managers, which means the latter can focus solely on maintaining your asset and taking care of the tenants. Ask the property manager you’re considering what their workload is, as you want to ensure they have enough time to tend to your property properly.

A good property manager will conduct regular inspections of your property and will provide reports to you as the landlord, including photographs. Regular inspections are essential as they enable the manager to pick up on any problems with the property before they get out of hand. For example, they might discover that a tenant is failing to treat the property properly, or pick up on maintenance issues that might cause costly damage to your property in the long run. If problems are picked up early they can be remedied quickly and the value of your property can be maintained.

3 How do you find and screen tenants?

Finding a good tenant is the first step in risk management for your investment, so it’s very important that your property manager has a thorough selection process in place. To find out what this involves, you can read my previous column on choosing great tenants.

You’ll also want to ensure your property isn’t left vacant for long periods of time, so it’s important to ask a potential property manager how they plan to find a tenant for your property. There are two main factors that will lead to your property being rented quickly: the way it’s presented (which includes the quality of the advertisement); and price. If your asset remains on the market for a longer period of time, some property management companies will offer incentives to attract tenants, such as offering a rent-free period or throwing in an iPod, or even a holiday.

George Kafantaris is the principal of property management company Property Portfolio.www.propertyportfolio.com.au

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Australian Run Property Manager to Serve 15 Months in Prison for Maintenance Fraud

When you are undertaking repairs to your rental property are you certain that the works are being completed satisfactorily on your behalf. You might be wise to seek some proof from your property manager if you are in doubt about the work or uncomfortable with the financial deductions from your rental statements. 

A former property manager from the Run Property Group in Melbourne has been found guilty of jailed after stealing $580,000 through a web of fake invoices and contractors.

Between 2005 and 2011, Leigh Aizen fabricated more than 400 fake maintenance work invoices through the Run Property agency where he was employed mostly for uncompleted maintenance on behalf of property investors and home owners of rental property under his care. At times, no work was ever undertaken.

Such was the sophistication of his underground operation, Mr Aizen created false maintenance companies and paid himself by sending the payments through a web of international banks and offshore accounts.

The court heard that the "elaborate" and "sophisticated" scheme was set up due to pressure from Mr Aizen’s then-partner to maintain her extravagant lifestyle. But the breach of trust of his employers and clients led County Court judge Gabriele Cannon to sentence Mr Aizen to a minimum of 15 months' prison.

"At the end of the day it was your decision to remain in the relationship with your [then] partner and commit the offences which I now sentence you," the judge said. "This was no spur of the moment offending ... but a lengthy course of conduct which you continued until you were discovered," Judge Cannon said.

The property manager has also since repaid $450,000 of the $580,000, and intends to pay back the remaining balance - Thankfully for the victims of this unsavory breach of trust! 

When you are authorizing substantial maintenance works and repairs on your rental property be sure to sight proper quotation documents and supportive photographic evidence of the subject repairs before you instruct your property manager to proceed with the works. If you are being asked to spend considerable amounts of money then you are wise to seek a second quotation from another contractor. I also recommend that if you are in a position to talk with the contractors directly before approving quotes inn order to satisfy yourself that the work is necessary and that all repair options have been taken into consideration. 

When the works are complete your property manager should confirm same with you and confirm the payment amounts that are due to the contractor. You should ensure that your property manager has personally inspected the works on your behalf and can send you some photographs of their inspection. For substantial and costly repairs you should seek to inspect the work yourself if you are able. 

Article Modified by Chris Snell, Property Manager, Australia, 

Article sourced by Written by Steven Cross  Friday, 06 June 2014

http://www.rpmonline.com.au/news/12470-15-months-jail-for-pm-who-stole-over-half-a-million?utm_source=Residential+Property+Manager&utm_campaign=Residential_Property_Manager_Bulletin06_06_2014&utm_medium=email

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Property Management Rental Property Nightmare - Fully Furnished Disaster Video

Leasing out your home as a rental property without the engagement of a good rental management company who can provide you with quality rental management services can present you as the landlord with problems at the conclusion of the tenancy. This video highlights the issues that you might be confronted with if you are not rent out your home professionally. There may be a few things that this unsuspecting landlord could have done at the start and during the tenancy to intercept and prevent some of the tragic things that has happened to them and their rental property. Avoid making the same mistakes - get your free copy of Costly Mistakes Landlords Make - a free report.
Submitted by Chris Snell, Property Manager, Rental Success Blog.

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Property manager pleads guilty to 16 shocking charges of deception

Residential Property Manager Magazine has reported that a Western Australian property manager has been fined $10,000 after she deceived landlords, tenants and even her employers over a two-year period.

Josephine Wei-Wei Liau of Mount Pleasant pleaded guilty earlier this month in the Perth Magistrates Court for 16 charges of various instances of misleading and deceptive conduct.

Consumer Protection told the Court that Ms Liau’s misrepresentations included advising owners of properties in Yangebup and Mount Pleasant that she was representing the agency, when in fact the agency had no record of the properties being under their management. Ms Liau used the agency’s logo in statements sent to the owners.

Ms Liau also deceived owners by lying about the amount of rent that was actually being paid.

One Mount Pleasant tenant was paying weekly rent of $950 while the owner of the property believed only $800 was being paid.

Another tenant was paying $380 in weekly rent while the owner was advised that $350 rent was being paid. When the tenant’s rent was subsequently increased to $400, the owner understood the rent payments had remained the same.

In both cases Ms Liau retained the difference.

Ms Liau made a similar misrepresentation regarding a water bill for a Willetton property.

She demanded six months’ rent in advance, totalling more than $30,000 from a tenant, and taking longer than 14 days to lodge bonds with the Bond Administrator.

The former property manager also advised clients she had a real estate agent’s licence when she only held a certificate of registration as a property manager from March 2010 and March 2013.

Magistrate Zempilas said the offences were serious and commissioner for consumer protection Anne Driscoll said such serious deception is unacceptable.

“Property managers have a trusted position as the liaison point between a property owner and a tenant, so they must display the highest standards of honesty and integrity as required by law,” Ms Driscoll said.

“Those who choose to profit from misleading and deceptive conduct in the real estate industry will face prosecution and suffer financial penalties as well as serious damage to their reputation.”

Don't fall victim to a crooked property management. Claim your free report today by clicking this link.

Submitted by Chris Snell, Property Manager Australia, Article Written by Steven Cross

Source: http://www.rpmonline.com.au/news/12119-property-manager-pleads-guilty-to-16-shocking-charges?utm_source=Residential+Property+Manager&utm_campaign=Residential_Property_Manager_Bulletin17_03_2014&utm_medium=email

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Buying A House Or An Apartment?

Buyers Guide .... Buying a House or Buying an Apartment? 

When you are looking to rent our your home or when you are looking to buy an investment property there are significant differences to take into consideration the differences for their use as a rental property.

Everybody thinks a 2 bedroom unit is the perfect investment property model to buy. However you might be misled. This might be investor suicide to think that your 2 bedroom flat is going to rent out easily but nobody told you about the 75 other similar properties in the same suburb or city street being promoted for lease at a cheaper price to you. You are at risk of sitting vacant and on the market for a long time.

If you are doing some research ahead of your purchase for your investment property then you are wise to take into consideration the competition within the rental market place you might well find that there is a shortage or a particular property type and a subsequent consumer demand. It might mean that you actually end up purchasing a 2 or 3 bedroom house on a small block of land, or a 3 bedroom two story townhouse.

Click above to claim a free report on the Costly Mistakes Landlords Make

Speak to a local property manager or a leasing agent specialist in the the areas that you are interested in. Too many people only talk to a property manager about the cheapest property management fees and the best property management agencies factor. However I argue that you should be interview your property management office during your buying process. Buying an investment property should not be rushed and should not be something you buy like you would buy a property to occupy for yourself.

Remember that most sales people are exactly that! They are not going to spend much time on matters related to property management, leasing out your property, choosing the right investment property to purchase, and nor will they spend much time discussing rental property vacancy rates. Wishing You Rental Success!

Written by Chris Snell, Property Manager, Rental Success Australia Blog

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Good Property Managers Are The Foundation of Good Property Management Companies

Choosing a good property management company is certainly something that you will need to do when seeking professional services to lease out your rental property. However appointing a suitably qualified property manager is more important. Too many things are left to chance when an unsuspecting property investor appoints and agency based on its profile without doing due diligence on the person who will be acting for you and your property. Needless to say there is a endless list of things to be wary of, but I propose just a few points of reference to get you started.

5 Things to consider when choosing a good property manager 

to manage your rental property...

1. Professionalism - have you spoken over the telephone or met the prospective property manager in person? Did the person appear professional and demonstrate a sense of being in control of the situation?
2. Clarity - was the property manager able to grasp quickly and relay back to you with clarity the important components of your situation and the discussion? Were their communication skills attentive and engaging? Did they offer you assurances of the tasks at hand?
3. Local Knowledge - did you receive some indications from the property manager that they possessed some local knowledge of the area surrounding your investment property? 
4. Expertise - the property manager should be able to convey to you their professional industry expertise. You should be starting to feel that this property manager does have a degree of competency that makes you feel that this person is going to serve you well. 
5. Reasonable - do be really confident that your property manager is the right professional for you, I recommend that you listen to your inner instinct and go with your gut feeling. Are the things that the property manager is conveying to you sounding fair and reasonable? or, Are they sounding far fetched and unreasonable? 

Choosing a good property management company is certainly worthy of some consideration but the person delivering the property management services is more important. If you are not getting a good vibration from your likely property manager candidate there is only one to do ... keep searching and interview another one - Common sense must prevail!

If you like what you have just read you might like to learn more by visiting my special report on the 

5 Costly Mistakes Landlords Make With Their Investment Properties.
Written by Chris Snell, Property Manager Melbourne Australia, Rental Success Blog

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