6 Reasons Why It Pays to Choose a Property Manager with a Smaller Rent Roll
...and 5 Questions to Ask Your Managing Agency
Aside from perhaps the home you live in, your investment property is likely to be your most expensive and valuable asset. As such, it pays to have a property manager who takes the time to care for it properly. Below is a list of 6 reasons why hiring a property manager with a smaller rent roll can pay dividends for you and your investment property.
1. Simply Put, They Will be Less Overworked
The most obvious reason for seeking a property manager with a smaller rent roll, is that your property manager will be less overworked than someone who has a larger rent roll. This translates to better customer service, not only to you but your tenants and tradies as well, and a higher level of attention to detail. It means a property manager that is less stressed should unavoidable issues arise such as major emergency maintenance, or issues with tenants. In these situations, it pays to have a property manager on your side who has enough time and energy to handle the situation as it arises. Given enough time, eventually issues will arise with a rental property in some shape or form. You want someone who is cool, calm and collected as this is the most effective and capable person of responding to these situations. So choose property manager with a smaller rent roll and you will know that if something major does happen, you are in safe hands.
2. It Takes Time to Manage a Rental Property
Did you know that the industry standard rent roll size for property managers in the Brisbane area is around 150 properties per property manager? If a property manager works a 40 hour week, that means they will only devote on average, 16 minutes a week to each property. When you think about the time it takes to show prospective tenants a rental property, to travel between the office and the property, to process rental income, issue end of month statements, etc. etc -pretty quickly this 16 minutes is gone. It simply means that if your property manager has a larger portfolio, they will not give your property the attention it deserves because they are time poor.
3. High Employee Turnover
You may have heard of the ‘burnout’ that property managers experience in the industry, leading to a high rate of employee turnover. If you have had your rental property managed by a larger agency then you may have also experienced this firsthand – you have just gotten to know your property manager only to have them leave and be replaced by another property manager every 3-6 months. This means that you need to re-educate them on your rental property background and start from scratch all over again. It can be very frustrating! A large rental portfolio can leave a property manager emotionally and physically exhausted at the end of the work day. People need to have balance in their work lives, if not they will make mistakes because they are too tired, and they will end up feeling overworked and they will quit. The problem with having a high turnover of property managers is that this is how things ‘fall through the cracks’. When a portfolio of 150 properties is handed from one property manager to the next, there may be a ‘handover period’ of about a week where the old property manager and the new property manager are working in the office together. This is so that the old property manager can teach the new property manager about the portfolio. A 1 week handover is simply not enough time to explain everything to them about a portfolio of 150 properties, so inevitably things get missed.
4. Happier, More Confident Tenants
As frustrating as it can be for landlords to have property managers who are stressed out, overworked, and change every few months – this is equally as frustrating for your tenants. It does pay to have happy tenants in your rental property and having a happy and long term property manager who has developed a strong knowledge of your rental property, and solid relationships with your tenants, can pay dividends. We have experienced many tenants over the years who have moved out of their rental property, not because of the property, but because of their property manager. It is important for tenants to have a managing agency they can trust, and this happens by the property manager taking the time to develop strong relationships with their tenants.
5. The Best Property Managers Get the Best Property Management Jobs
Excellent property managers are like hens’ teeth to employers in Brisbane. When an experienced property manager comes on the market for a job, they will often be offered multiple positions within the first few weeks of seeking employment. They will then have a look at all aspects of the position on offer when deciding who to work for. Things like how much they get paid, office culture and the size of the portfolio all come into consideration. Smaller portfolios are more popular because they leave a property manager with a better work / life balance. So the smaller portfolios get snapped up by the more experienced property managers, often leaving the larger portfolios for the less experienced property managers who may have fewer employment options.
6. Larger Portfolios Often Get Outsourced
Outsourcing of things such as processing rental applications, routine inspections, and property viewings to other companies is becoming more and more popular among larger agencies. There are agencies who use an admin assistant overseas to process their rental applications because it is cheaper. But the problem with this is that this overseas assistant may not be a property manager themselves. This means that when your property manager approaches you with a rental application, they may not have met the applicants or screened them themselves. So they don’t really know if your tenants will be quality tenants or not. Similarly, if an external company is conducting your property inspections, they don’t have an interest in continuing to maintain the property as they don’t manage the property. So things may be missed or overlooked. Sometimes a junior property manager is employed to conduct the routine inspections or rental property viewings. It takes a trained eye to spot some issues so it does pay to have every property management task completed by your experienced property manager, and not outsourced to somebody else.
I hope the above list will help you when deciding on which property manager to use.
When searching for a property manager, make sure you ask your agency these questions when deciding on whether or not to choose them:
1. How many properties will my property manager have in their portfolio?
2. Do they have any assistant property managers working under them? If so, what are the tasks that will be carried out by the assistants?
3. Will any of the property management tasks be outsourced?
4.How many years of experience does my property manager have?
5. How long have they been with your agency?
If you have any questions for us about how we can manage your rental property in the Greater Brisbane Area, please get in touch!