Bad property managers cost good people time and money.
Last February, I received a phone call from the police asking if I would be a witness to the intentional damage done to my property the previous September. This was the first I had heard of it. My (now ex) property manager had completed November’s inspection report and there was no indication of any problem. I ended up with a repair bill in excess of $5000.
Fortunately I have landlord’s insurance to cover incidents like this.
The big lesson here is that the property manager did not do her job. Like any boss, you are paying your property manager to do a job. If their work is unsatisfactory you have the right to terminate their employment. If you are not happy with your manager, tell them. If their performance does not improve, don’t put yourself in the position where you lose a lot of money.
Don’t make the same mistakes I made. Keep in touch with your property manager often enough for them to know you – that’s at least every month. Put your requests in writing. Make sure they’re not on auto-pilot when things are going wrong. Be brutally honest with them and let them know you’re on the ball.
Good property managers find great tenants, report back to you regularly, conduct business efficiently and ensure you make as much profit as possible. When you find one, not only will you stand to reap all the benefits of property investing, you’ll dramatically increase your peace of mind.
Great point.
Yeah, have to agree with that, Aaron. As you may have heard in a recent podcast I just ‘sacked’ two of my managers. One place I have I’m up to the third management company in 18 months!! Almost makes me want to sell the property and give up on that area – only problem is the value of the house in increasing nicely AND it’s the same place that we’re having plans drawn up for to build another dwelling. So hoping this latest management company will do a good job!