As the owner of Mark O'Shea Realty, I entered the property management world because I have witnessed firsthand how underperforming property managers could negatively impact the sale price of investment properties. The truth is, that working with an underperforming property manager results in unnecessary stress and financial losses. If you’re asking yourself, "If not now, when?" in regards to replacing your property manager, the answer is clear: the best time is now. Here’s why timely action is crucial and how it can benefit your property investments.
Identifying the signs of an underperforming property manager is the first step in protecting your investment. Common indicators include:
Poor Communication: Ineffective communication with rental providers and renters weakens the foundation of professional property management services.
Lack of Maintenance Knowledge: Inadequate management of maintenance issues can increase costs for rental providers.
Legislation Requirements Knowledge: Failure to manage legislative responsibilities for rental providers and renters can increase the risk of intervention from the Victorian Civil and Administrative Tribunal (VCAT).
Lack of Pre-emptive Management Advice: Poor management of pre-emptive issues negatively impacts the rental provider's investment strategy.
The Hidden Cost of Underperformance
Hoping that an underperforming property manager will improve can be stressful and expensive. Acting now is crucial because:
Financial Losses: Underperforming management can lead to financial losses due to below-market rents, longer vacancy periods, delayed maintenance, and rental arrears. These losses can quickly add up, impacting your overall investment returns.
Property Deterioration: Underperforming management increases maintenance costs and decreased property capital value
Increased Liability Risk: Underperforming management exposes rental providers to fines with increased Consumer Affairs Rental Property compliance inspections and being public risk suits if a renter or visitor is injured at the rental property.
Increased Stress: Underperforming management increases investment stress. Replacing them with a competent manager can provide peace of mind and ensure your property is in good hands.
Making the Change
If you’ve identified that your property manager is underperforming, it’s essential to act sooner rather than later. Here’s how to make the transition smoothly:
Have a Clear Vision of What You Expect from a Property Manager: Ensure you’re not swapping "like for like" managers and systems. Define your expectations clearly.
Evaluate Local Property Management Options: Interview managers and compare management systems. Choose the best match for you and insist on a minimum 3-month money-back service guarantee.
Plan the Swap: Your new property manager’s systems should handle the complete handover process for you.
Monitor the New Manager: After making the switch, hold the new property manager accountable for the service they guaranteed you.
Procrastinating on sacking an underperforming property manager can have significant financial and emotional costs. If you’re wondering, "If not now, when?" the answer is now. Taking decisive action today can protect your investment, improve your investment experience, and provide peace of mind. At Mark O'Shea Realty, we are committed to offering the best property management service in Bendigo, ensuring your property is managed with the utmost care and professionalism. Protect your investment vision; don’t wait for problems to escalate.
