Finding a good property manager in Auckland can be just as hard as securing a good tenant.
Over the next few weeks we will reveal some tips to make this job easier for you. Levels of service between agencies are varied and every agency promotes good service. How do you make the right choice? In the next few weeks we will reveal insider tips so you can avoid the bad experience of a bad agent.
Top Tips to Finding the Right Property Manager
Cheap Agents means Bad Service!
Agents who have cheap fees have to burden their property manager with a lot more properties to manage in an attempt to make a profit. No doubt their business running expenses are the same as any other agency, so they must now manage by sheer volume. This creates a situation where property managers ‘burnout’, resulting in high staff turnover which converts to poor service and a bad experience overall. Therefore an agent charging more is perhaps a good indication that they will be there ‘for the long haul’ and give a better level of service.
Good Agents Receive Regular Training
A good property management service has staff who are regularly receiving training to ensure that they remain cutting edge in an ever changing property management industry. Be sure that when you are seeking a good property manager that they are conducting regular training either with their local real estate institute or within their real estate group.
Though staff turnover is common in the property management industry, an office that has high staff turnover is a good indication that service levels are low and inconsistent. This is usually because they receive no training, support systems or right direction from their real estate principals. Asking how many property managers have been employed in the last year for that agency, or even watching how many times positions are advertised for that agency in property management could be an indication to avoid that agency.
Another indictor of a real estate agency’s’ focus is their window space. If the agent has little or no mention of property management services, and their window space is totally dominated by properties for sale and general sales information, this is a good sign that the agent is more sales focussed and not as dedicated to property management. Though this is only a possible indicator, be sure to thoroughly question the agency about their focus on property management to ensure that they are a professional agency that takes pride in good property management practice and service.
The Dangers for the Private Landlord
Many landlords see property investment as a wealth creation strategy.
Many choose to use a property management service, however a number of landlords believe they can successfully manage their rental property themselves but more and more private landlords are running into problems they didn’t expect. In the next few weeks we will explore the problems associated with being a private landlord.
Bad Tenants tend to Avoid Agents!
It is often true that a private landlord can place a ‘for rent’ advert in the newspaper and be inundated with response, not realising they could be speaking with tenants who specifically avoid dealing with agents. This tenant type likes to target private landlords knowing full well they will most likely be accepted on face value, with no reference checks or stringent identification checks completed that can expose their unsavoury rental history.
Bad Tenants Don’t Like Regular Inspections!
Some bad tenants target private landlords because they know that most do not conduct regular inspections. This allows them to conduct illegal activities like drug production which can result in substantial damage to the property. It is only after the tenant has left or has been evicted that the damage and devastation is evident, leaving the landlord to fix the damage and deal with a massive financial loss.
Delaying the Rent Arrears Process
If a tenant falls behind in the rent, private landlords can give the tenant lengthy periods of ‘grace’ unknowingly allowing them to get into a financial ‘point of no return’ where they are unable to catch up. When the landlord finally starts to serve legal notices it is too late and results in a much greater loss than if correct action was taken in a timelier manner. This can also prejudice landlord insurance claims if the legal process is compromised.
Becoming Emotionally Involved
Taking action against a tenant is so much harder when you have become emotionally connected with the tenant. Having a business only relationship is good, but having a ‘no relationship’ status is better by employing an agent, who avoids becoming emotionally involved and treats any situation in a business manner. Becoming emotionally involved can make your landlord experience a bitter one if a bad tenant takes advantage of your ‘good will’ and leaves you with a financial loss.