Choosing the correct property manager can determine whether your investment experience is a dream come true or a complete nightmare

The number one question I get when talking to new landlords, is what are your fees?
Now obviously it is important to understand what the costs are when assessing your returns, but this is generally the LEAST important question to be asking.
There are some standard questions to ask, such as:
how many properties do you manage
how long have you been in the industry
are you task based or end to end (this might mean you have a leasing manager, a property manager and an inspection manager vs. one property manager who does everything)
But you don't know what other questions to ask if you haven't done this before, and the below are some unusual questions that will help you draw a really strong impression of your future property manager, and if this is someone you want to work with long term.
Question #1 - What happens when the property manager is away sick or on annual leave?
This might not seem relevant, but in the busy world of property management, being able to take annual leave is not always possible.
Having managed teams of property managers in the past, my number one focus was to set up systems and procedures in place to ensure the property managers felt like they could take leave, and not come back to an avalanche of work.
If they do not have appropriate cover in their absence, this leads to property managers never wanting to take leave, and burning out.
They then leave the job (and your property) and either move on elsewhere, or out of the industry altogether.
Question #2 - Explain the marketing process
With some agencies, most property managers would not get involved in the marketing, and it can be a one sized fits all approach as this is either handled by the franchise group, or set by the principal.
But not all properties are created equal, and there should be flexibility when marketing your property. The marketing process should be a strategy designed to cast the net far and wide to capture as many people, get them through your property, so you can rent the home faster, and have a selection of tenants to choose from.
Do they offer video tours? Do they offer signboards? What about floorplans? How often will the property be opened? Will there be private inspections? Who does the open inspections? Do tenants have to apply prior to viewing the home? What is communicated to the landlord throughout this process?
Understanding this crucial process will help you determine if your property has the best chance of success.
"The important thing is not to stop questioning" – Albert Einstein
Question #3 - What is your process for rent arrears?
Any property manager should easily be able to tell you their process and what their current arrears rate is.
It should look like a systemised method of varying communications to the tenant, and what happens when the communication fails, and breach notices need to be served.
Will you be advised of this at any stage through the process? What happens if it ends up in tribunal?
Question #4 - What about staff turnover in the team?
How long have the team members been with the company?
Property management is a tricky job, with a high rate of burnout, but it can also be one of the least respected, and underpaid professions in the industry, and if there is high turnover within the agency, it can be extremely telling.
Culture is driven from the business leaders, and if people are not wanting to remain with a company, chances are this will be a revolving door of property managers, each one caring a little less than the last.
This can be catastrophic for you as a landlord as crucial tasks are missed, communication fails, and there is a higher chance of things going wrong, again and again.
Tip #5 - What is your process for renewals and end of tenancies?
This is a double question, but understanding will the property manager do an increase on the rent? Will they review rents in the area? Will they review the tenants performance and take this into consideration?
If the tenant does vacate, how will they communicate this process with you? Can you attend the final inspection? Will you be informed of any possible claims on the bond?
How will re-advertising be handled to minimise vacancy days for your property?
Make an informed decision
We all like to work with people we trust, and it's important to ask as many questions as possible of your potential future property manager to learn if we can trust them.
Especially when you are handing over responsibility of one of your biggest assets.
There are many more questions you can ask, and I urge you to think of as many as possible when choosing a property manager.
This will give you the best chance of success and ensure that investing in property is something you want to do more and more of!
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