There is so much to consider when choosing a property manager to look after your investment property and if this is your first investment property. , there are things to consider that you don’t even know about yet so let’s start with the first thing you will consider. Cost!

Far too often landlords consider cost above service but remember that not all property managers are considered equal and not all property managers provide the same service so here’s what to look for:

1. Experience/Qualifications: You want a property manager who has substantial experience in the industry and is a Licenced Real Estate Agent. You want to ask your property manager how long they have worked in the industry and if they have a Certificate of Registration or a Licence. You shouldn’t discount a junior property manager with a Certificate of Registration though, if they work in a good team with a Senior Property Manager or Team Leader who supports and guides them along with the right attitude, they can be wonderful property managers. But are you going to pay the same fees for a junior as you would a senior property manager? Think about a hairdresser, you don’t pay the same amount at Just Cuts that you do at Joh Bailey. Don’t be tricked by the experience and sales pitch by the Business Development Manager (BDM), they aren’t property managers.
2. Number of Properties: You want to find out how many properties the property manager is allocated. Far too often property managers are over burdened with too many properties and clients, and the level of service they are able to provide to you is greatly impacted by having too many properties. This is one area where the service to the client is affected as the property manager doesn’t have time to answer your call, reply to your email or call you back. A good property manager should manage around 100-150 properties, any more than that and the service level will decrease.
3. Communication: One of the biggest complaints from owners in property management is the lack of communication. We have touched on some of the reasons why property managers lack effective communication such as inexperience, too many properties and too busy (I know, I have been there and experienced it first hand). The best way to test the communication with your property manager is to call the office or their mobile, ask to speak to the property manager and see if they answer, see how long it takes to call back; Send an email to the property manager and see how long it takes to reply. You want a property manager that will reply to you within a 24 hour time frame. You want a proactive not a reactive property manager.
4. Services: Find out what services your property manager will offer. What are their processes and procedures for rent arrears, routine inspection, rent increases and lease renewals? A good property manager will be able to provide detailed information how they manage all their services. You may be tempted to go straight for the big corporate names but don’t pass by smaller boutique agencies. Big corporate agencies are usually run by sales teams, not by property managers and they are primarily focused on the sales side and the $$$. The top property managers I know all work for themselves or small boutique agencies.
5. Cost: And finally the question you thought of in the beginning. How much will it cost? Cost is a variable that needs to be considered from all angles. Generally the property manager will discuss the management fee which is a percentage of the rent collection, usually between 5% to 7% plus GST. Let’s say your property is rented for $500 per week, 5.5% is $27.50 per week and 7.7% is $38.50, there’s a difference there of $11.o0 per week. Remember I said not all property managers are equal, well here’s why. A bad property manager at 5.5% could cost you thousands of dollars in the long run due to poor management and poor service. There is so many things that a property manager can do wrong, do you really want to choose an inexperienced and overworked property manager to look after your investment that you have worked so hard to save the deposit for? No, no you don’t. A good property manager will not discount their fees because they know they are worth it.

When you are choosing a property manager for your property, you must consider all these factors and remember, you get what you pay for.

Now, it’s time to start interviewing property managers.