When it comes to managing your investment property, there's a saying we all know: "You get what you pay for." While this might sound cliché, it's often true, especially in the property management industry. Opting for the cheapest fees might seem like a smart way to maximise your returns, but in reality, this decision can end up costing you much more in the long run.
The Hidden Costs of Low Fees
Large property management companies offering rock-bottom fees are often focused on one goal: rapidly growing their rent roll to sell it as an asset. To achieve this, they hire inexperienced property managers on low salaries. While everyone has to start somewhere, these junior managers are often left to navigate complex situations on their own, without the guidance of an experienced mentor. This lack of experience can lead to costly mistakes.
For example, a property manager who doesn't follow up on rental arrears or fails to ensure that a tenant maintains the property can quickly turn your investment into a financial headache. A small issue that goes unnoticed or unaddressed can escalate into a major problem, costing you far more than the savings you made by choosing a cheaper property manager.
Protecting Your Most Valuable Asset
Your investment property is likely one of the most expensive assets you'll ever own. It deserves to be looked after with the utmost care. An experienced property manager can protect your asset, avoid costly mistakes, and ultimately save you money. They have the expertise to handle tenant issues, ensure timely maintenance, and manage finances effectively, helping you maintain and even increase the value of your property over time.
What to Consider When Choosing a Property Manager
So, if fees shouldn't be your primary concern, what should you focus on when selecting a property manager?
Experience: Ask who will be managing your property. How experienced are they? While it's true that everyone has to start somewhere, it's crucial that junior property managers are supported by experienced mentors who can guide them through challenging situations.
Communication: Poor communication is one of the biggest complaints from property owners. When you need to speak to your property manager, you should be able to reach them promptly. Ask about their communication policy. How quickly do they respond to emails or calls? How do they keep you informed about your property?
Proximity to Your Property: Where is the property manager based in relation to your property? A local manager is more likely to have a thorough understanding of the area and can respond quickly to any issues that arise.
Portfolio Size: How many properties does the manager handle? While experience is important, so is their capacity to manage your property effectively. If they're juggling too many properties, they might not be able to give yours the attention it deserves.
Value Over Fees
At the end of the day, you want to ensure you're getting good value for your money. This means not just looking at the fees but considering the quality of service you're receiving. An experienced property manager might charge a bit more, but the peace of mind and financial savings they provide in the long run are well worth the investment.
Before you make your decision, do your homework. Ask the right questions, and make sure you're choosing a property manager who will treat your property as if it were their own. In the world of property management, cutting corners on fees can lead to costly consequences. Make sure you're making a decision that protects your investment for years to come.
Looking to change your current property manager, its not as difficult as you might think. Give me a call today to see if I can help. 0429 165 552
