Proper Management

Property management is a very tough business…hot water systems seem to know the worst possible time to explode and tenants seem to vacate just when everything seems to be going like clockwork.

Everybody has a story about a bad experience with a property manager. Whether it’s a neglected tenant or a landlord that is shocked to find their property hasn’t been cared for. It's never-ending. Now I understand why this is, and the answer is simple - too many properties and not enough property managers.

About 18 months ago we decided to take the leap from being a busy ‘sales only’ office and hired a superb property manager to start a brand new rent roll. Thankfully - and through a lot of hard work - our rent roll has grown fast, and we now have a property management department we are proud of.

The typical agency model however, of having hundreds of properties on a rent roll and one or two people managing it is plain madness. Presiding over a rent roll is like being in air traffic control - lots of things happening all at once and if you miss something it can turn into an absolute disaster. Of course you have to make a profit, but when things go wrong in this business they can go very wrong. And this should be considered when you go to lease your property out.

If you are looking for an investment property or already have one, then you need to be aware of the structure of the business that is managing the property on your behalf. Before appointing a property manager you should ask the agent for references from current landlords. In fact, the best way to do this is to ask for a list of rental properties and select two or three at random.

I’m surprised by how many people tell me they aren’t happy with their property manager but don’t want to move the management because it may upset the tenant! If you are not happy then your tenant is probably unhappy as well.

If you cant find a good property manager, manage it yourself and if you cant manage it yourself make sure you find a good property manager.

 David Murphy owns an independent real estate agency in Sydney’s lower north shore – feel free to call ON 02 9968 2088 or email with questions david@davidmurphy.com.au