on 9/27/2018
Investors enter real estate initially because they are excited about the growth potential of their wealth. They study the market, exercise due diligence, and seek to invest in the right places to sit and wait for the profits to arrive. However, many people discover that it is not so easy.
Everyone wants the tenant of his dreams, conscientious and responsible, who pays the rent on time and treats the property as if it belonged to them.
It's not always what we get. Sometimes a tenant who spoils a property does not pay the rent on time and will only alert you to a tap that leaks weeks or months after the problem starts, which will result in a much more expensive repair.
This may be enough to let an investor wonder if it is worth it, because owning investment properties can be an exhausting experience. And that's where the real estate managers come in.
An excellent property manager can do the heavy work for you in terms of rental management. They are the ones who will take care of your night complaints and deal with you with fragile tenants.
They will also be potential tenants, to minimize the chances of renting your property to irresponsible tenants. With their experience in the sector, they generally manage an excellent database of repair resources and are familiar with the regulations in place among tenant owners, particularly with regard to major incidents such as evictions.
However, it goes without saying that, while there may be nightmarish tenants, there may also be nightmarish property managers.
If you are concerned that your Property Administrator will only cause property damage to your property, it is time to re-evaluate your contract to replace it with a more experienced and experienced person. You will find below some signs indicating that it is time to replace your real estate administrator.
1 When your property manager is MIA
One or two texts that do not receive an answer may not be of concern at the moment. But when you blow up your real estate administrator's phone and you never receive news, it's time to quickly check your properties because something may be wrong. It is possible that your real estate administrator is out of date, that he has too many buildings for sale or that he is simply badly organized. Whatever their reasoning, it is time to investigate further.
2 When your tenants blow up your phone
Getting inquiries from tenants about problems that your property manager is supposed to handle is another serious indicator that they may not be able to do their job. One of the main reasons you hire a property manager is that renters do not know (and would not even need to) know who the owner is. When your tenant looks at you, this suggests that your property manager may have ignored their complaints.
3 When your property manager does not solve the problems
Did your manager maintain the property regularly? Are broken appliances and defective appliances repaired? If the answer to these questions is a big no, then you can have a lazy and unprofessional property manager on your hands. Your property manager should provide you with regular reports (at least every six months). If you have not heard about it for a while, consider requesting an update.
4 When your property manager does not update you
If your property manager does not provide you with regular reports on your tenants, their intention to stay / move, and updates on repairs and maintenance, they are doing something wrong. Your real estate administrator may also provide the necessary reports, but they are always very detailed. Your property manager is there to serve as a link between you and your property, so he must be aware of the smallest problems (even before the snowball becomes a big deal).
5 When You Have Compliance Problems
Regulatory changes can affect your investment. It is the role of your Real Estate Administrator to ensure that you are aware of the latest changes, while keeping your properties out of the law. Smoke alarms, window sills and swimming pools may be areas of concern as they are often governed by specific regulations. As the owner, the responsibility is not yours, but you should be able to rely on your property manager for advice along the way.
6 When your cash is low
Is your property vacant for months without hope of finding a tenant in the near future, which poses significant cash flow problems? This may indicate that your property manager is doing a terrible job of marketing it effectively to potential tenants. Even in the slower real estate markets, an effective property manager or leasing agent can guide you to a tenant, even if it means lowering your rent.
If any of the red flags above tell you something, do not wait to launch a bad asset manager, otherwise the impact on your wallet could be disastrous.
When signing a contract, it is important to include clauses that specify how you can terminate your transaction with a property manager, as this can help you manage a smooth outflow.
Once the partnership is complete, you must ensure that all tenant records are provided by the property manager so that you can contact the tenants to inform them of the change and resolve any remaining issues. Make sure all outstanding rent is paid, check everything that needs to be repaired, and perform a thorough inspection to resolve any compliance issues.
Ideally, you will have aligned a new (and better quality) asset manager to help you in all of this! When you find a new property manager, be clear about your expectations. It would not hurt to schedule a meeting and an on-site inspection, and put everything in writing.
SIGNS OF AN EFFECTIVE PROPERTY MANAGER
– Know the rental rate just to charge tenants
– Thorough control of tenants during the background check
– Conduct regular inspections of the property and render reports
– Quickly solve problems related to the property, using the most profitable method
– Ensures tenants pay their rent on time
– Aware of government regulations affecting rentals
HOW TO GIVE THE BOOT TO YOUR PROPERTY MANAGER
Leanne Jopson, National Director of Property Management at Metropole, shares these tips for homeowners who wish to terminate their contract with their property manager.
Victoria
There is currently no minimum notice period for an owner who wishes to terminate the agreement with the current managing agent for his property (for leasing, you have to address to your managing authority). Once you have hired a new management agent, the agent sends the corresponding notification to your former agent and manages the necessary documents. However, your old agent will need time to prepare the file. We therefore recommend that you schedule three free working days.
NSW
The notice period for the termination of a management agreement in NSW depends on your management agency contract. This is usually a 30-day written notice and can be up to 60 or 90 days.
Queensland
Form 6 of the real estate professions or appointments of agents for rental and management generally allow for continuous appointments; you must give your current agent at least 30 days' written notice.
Tasmania
Unless otherwise stipulated in your management contract, the period of notice shall be at least 30 days in writing.
South Australia
The notice period will be stipulated in the real estate agreement. As a general rule, a 60 to 90 day notice period is required and cancellation fees may also apply.
Western Australia
Most management contracts have a fixed term, which means that you can not appoint a new executive agent without paying a penalty (50% of the management fee for the remainder of the period) unless otherwise agreed. If you are nearing the end of your Fixed Management Period or if it has expired and the agreement has been placed in recurring mode, you will need to notify your agent at least 28 days in advance.
Territory of the Australian Capital
The system is very similar to that of Western Australia, except that if there is a fixed-term contract, the penalty is the total management fee for the remainder of the period. If the time is up, you must give 30, 60 or 90 days notice, according to the termination agreement with the managing authority.
Northern Territory
Details of the notice of termination will be specified in the Residential Property Management Agreement, but 30 days' written notice is required from either party. However, in the event that the owner gives a notice, he may be required to pay the agent an early cancellation fee equal to 50% of his remuneration, payable for the remainder of the current lease term. In case of violation of the agreement, this notification can be reduced to seven days.
DO YOU WANT MORE NEWS AND FEATURES?
Visit your investment property
website at
www.yipmag.com.au
Whether you're looking to buy your first home, move, refinance or invest in real estate, a mortgage broker can help. Get loans from all major lenders, get help with paperwork – and this service is free. Get help from a local mortgage broker
