Top Property Management Company Problems And How To Avoid Them
by Arnab Dey Real Estate 11 January 2023
It’s simple to locate horror stories about property management.
You’ve probably heard of a real estate investor’s issues with property management if you know one. One-star ratings of property management businesses can be found in abundance on Google.
Property management is a challenging industry. It is still a service-based sector, therefore your property manager Auckland must act in your best interests at all times. You want them to uphold or, ideally, surpass the standards set by the sector.
Recognizing when something may or may not be beyond a property manager’s control is equally crucial. But you want a boss who is on it when something goes wrong!
Here Are Seven Crucial Property Management Company Problems:
The most typical issues with property management are listed below, along with advice on how to avoid them:
1. Below Market Rents:
For many real estate investors, rent is their main source of income. In order to optimize your prospective income, your rents should be competitive with current market rates. You may immediately determine if your manager is keeping up with the market by periodically conducting your own rental comps.
Utilizing any of the well-known real estate apps and websites is simple for rental comps. You can also give other local property managers a call and get their thoughts on the house. Ask them to back their arguments with specific instances from their experience.
2. Hidden Costs:
In many industries, hidden fees are a concern. However, hidden costs are considerably more difficult to accept when your investments are at stake. Make sure you have read and understand a property management contract before you sign it, and ask questions to get clarification on any points you are unclear about.
3. Mixed Messages From The Company:
Does the person you speak with when you phone the management office change every time? Are you receiving various responses to the same query? Overstaffing and employee churn are frequent issues for property management firms. When you join up, ask the salesman about the staff you will work with and their stability.
4. Poor Reporting/Communication:
Non-communication is unacceptable and should be avoided at all costs. Regular communications with your management are expected. Additionally, they ought to feel completely at ease using all forms of communication.
They shouldn’t be hiding behind an administrative assistant or auto-attendant all the time. Their monthly reports ought to be consistent, and you ought to get clear, prompt responses to your inquiries. Any reporting variance or report delivery failure might be a major warning sign that should not be disregarded.
You can negotiate with a property manager by being aware of your local market and the amount of labor your investment properties require. Managing a “needy” home costs extra money.
6. High Maintenance Costs:
There are two main options for handling maintenance: internal staff members or reliable outside contractors. Each fashion has benefits and drawbacks. Ask the property manager to explain the upkeep process. Find out how much they typically charge to fix the most frequent issues. You might also inquire about their plans for reducing expenses at your rental property.
7. No Inspections:
Having rental properties requires you to perform regular inspections. Inspections ought to be performed often. Management may be understaffed and unable to give their clients the best possible service if they fail to conduct routine inspections.
Finding someone who is currently receiving care from them and asking them about it is the best method to learn how inspections are handled.