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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Trending rental market is good reason for rental management companies to promote good rental management services

Many years ago the Aussie dream of home ownership was both the promotion of government and your grandparents. The concept of being a renter for life was something you did in the UK not in the lucky country, Australia. Well rental management companies and property managers need to pay attention. The tide is turning and the need for continuing rental management services has become exactly that. A report released today by realestateVIEW.com.au presents research data to suggest that the many renters are in the market place for the long haul and they are not ashamed of being tenants. This is good news for the property owner who simply wants good people to, "rent my home".

 "The Housing Sentiment Report – examining the lifestyle preferences and affordability concerns of over 1200 buyers and renters – shows one third of tenants have been in the rental market for five-plus years, with affordability a major deterrent to entering the market.

What is preventing them from buying? 

• Half of renters believe they can’t afford a deposit; 
• 32% believe they can’t afford mortgage payments 
• 28% of renters haven’t bought a property because they can’t afford to buy where they want to live 
• 25% think the market is overpriced 
• 22% believe it’s cheaper to rent 
• 18% have difficulty obtaining finance 
• 16% don’t want to be tied down to one place because of a mortgage 
• 12% have already bought an investment property

As a property investor you need to take some of this data seriously and start to think about your role as a landlord. The future is rosy for investors but the rental success to be enjoyed will depend largely on the rental management company being engaged and the level of rental management services being delivered. Tenants are your customers and if you're not prepared to deliver excellent rental management services at least ensure you have a property manager who is. 

View my free report, 5 Costly Mistakes Landlords Make with their Investment Properties, follow the link for instant access. Written 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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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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Property Investment is one of the fastest growing industries in Australia

Investment opportunities flood the market week after week. As our population grows so does the demand for accommodation. The property investor sector is well placed to thrive into the future. Rental accommodation needs across Australia are far from being satisfied. 

Are you an investor who became a landlord by accident? Are you experiencing challenges with your investment property? Are you suffering a poorly managed tenancy? Are you dissatisfied with your property manager? Are you about to purchase your first investment property? 

What if you could learn from an expert some of the best methods for rental success with your property? 

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