How do you know if you should change property managers and how much can you save?
I’m not talking about saving a hundred dollars in property management fees. In fact low property management fees can mean poor service and higher cost longer term.
How about saving thousands of dollars in lost rent, avoidable repairs, unrecovered bonds plus your own time, effort and frustration.
It can be hard to tell if your property manager is doing their job well until it is too late. Even if you suspect something is not right you wont know for sure without getting fully involved. But who has time and why have a dog and bark yourself. You naturally assume the property manager is doing their job properly and advising you correctly.
A professional and accountable property manager will manage your asset to maximise your return and capital growth and do all the worrying for you.
10 signs you should change property managers and what it is costing you.
Here are 10 ways to tell if your property manager is looking after you and your property correctly and if your income is at risk.
1. Slow or No Communication
If you have to chase your property manager for updates or never get a reply to your emails or calls, it’s a major red flag. If communication to you (the client) is poor you can only imagine how it is with your tenant and trades. This can create lots of problems with the tenant and overall property presentation or quality of maintenance.
2. Repairs and Maintenance Are Mishandled
Delays, inflated quotes, or poor workmanship—these are common signs your manager isn’t across repairs properly. Every maintenance issue affects your property’s value and tenant satisfaction. You need an agent who acts quickly and uses quality, reliable tradespeople.
3. Routine Inspections are haphazard
Routine inspections protect your investment. If reports are late, vague, or skipped entirely, your agent isn’t doing their job. Worse still, if issues flagged during inspections go unresolved, you could face expensive repair bills later.
4. Your manager quotes “the Rules” rather than looks for solutions.
Yes, there are strict rental regulations in Victoria and often for good reason. But a competent property manager works within the rules to find a path forward. If your agent’s default is to shut down discussions with a quote from the Residentials Tenancies Act, rather than working with you to navigate your best options whilst still providing you with protection inside these rules, they may not be solutions focused.
5. Rent reviews are not scheduled (or forgotten)
Rent reviews should be a routine part of management. If your agent is failing to keep up with market conditions or hesitates to have the rent increase conversation with tenants, you could be leaving thousands on the table each year.
6. They Don’t Take Responsibility When Things Go Wrong
Everyone makes mistakes occasionally. But a professional owns them and works to fix the issue quickly. If your property manager deflects blame, avoids difficult conversations, or disappears when things get tough, this is another tell tale sign.
7. You’re Left in the Dark During Vacancies
If you’ve ever had to ask, “How is the leasing of my property going?” you already know this frustration. A good property manager should be proactive during vacancy periods, providing regular updates on enquiries, inspections, and feedback. Silence is not a strategy.
8. You get hit with surprise costs
Unexpected invoices with little or no explanation? A property manager should always seek your approval for significant expenses and provide a clear breakdown. If your trust account is getting debited without transparency, it’s time to ask why.
9. They Don’t Understand Your Situation
Perhaps you’re relying on the rental income, planning to sell soon, or juggling multiple investments. A good property manager takes the time to understand your goals and tailors their service accordingly. If you feel like just another file in the drawer, your investment may not be getting the care it needs.
10. Tendency to side with the tenant.
Property managers should be fair and balanced. But if you constantly feel like your agent is advocating for the tenant’s interests at the expense of your own, something’s off. You need someone who understands your perspective and ensures your investment is protected.
What are the costs of poor property management?
Poor property management hits the hip pocket of owners in several ways.
1. Lost rent.
This can occur in many ways such as a
- lower market rent because the property is poorly maintained,
- higher turnover of tenants creating greater vacancy periods.
- smaller rental increases due to poor maintenance.
- longer let up times due to poor presentation meaning it sits vacant for longer
2. More repairs at a higher cost.
A poorly maintained property attracts lower quality tenants who in turn don’t look after the property. It’s a costly downward spiral eventually costing the owner a huge amount to renovate it while sitting vacant.
3. Your own time, effort and frustration
You find yourself doing a lot of the work of the property manager. This takes up your time and expense doing what they should be doing for you in the first place. Also you are not trained in property management and risk incurring more cost if processes are not followed correctly.
Here is a 6 Point Property Manager Health Check
If you suspect your property manager is not doing a good job, here are some quick checks you can do.
- Is your property manager slow to respond and usually communicates via email.
- Is their advice balanced and considered?
- Do they have a landlord insurance provider they can recommend or do you have a policy in place.
- Do they get regular 5-star reviews from owners and renters.
- Are the routine inspections completed every 6 months and detailed reports sent to you.
- Are all repairs and maintenance issues attended to promptly, using qualified tradespeople and followed through to completion.
If you have any concerns about your property management please get in touch with us.
