The management fee is only one part of the cost. Delayed repairs, unclear charges, frustrated tenants and hours spent chasing updates can cost landlords far more, explains Place One Group’s Shannon Waterhouse.
“Hi, just following up again…”
It’s one of the most common emails a landlord shouldn’t have to keep sending.
The first message was about a maintenance request. The second asked whether a quote had arrived. The third asked whether the tenant had received an update.
By that point, the landlord is no longer simply making a decision about their investment property; they’re managing the person being paid to manage it.
Place One Group Head of Property Management Shannon Waterhouse said many owners waited until their frustration reached breaking point before asking what other options existed.
“We speak to landlords who have been unhappy for months, and sometimes much longer, because they believed changing managers would become another job for them,” Shannon said.
“It shouldn’t reach that point.”
“An owner is allowed to review the service at any time, understand exactly what they are receiving and make an informed decision about whether it is still the right arrangement for their property.”
One delayed reply is understandable. But when following up becomes a pattern, the service is no longer doing its job.
Landlords regularly review the interest rate on their loan. They compare insurance policies. They check their rental return and question every increase in ownership costs.
Yet property management can remain untouched for years because changing managers sounds difficult.
Many landlords assume they’re locked in until their tenant’s lease expires. Others worry that moving will create more paperwork, disrupt the tenant or require an uncomfortable conversation with the current agency.
None of those concerns should prevent an owner from reviewing the service they are receiving.
Property management can be reviewed at any time.
A change can also take place while a tenancy is active. The notice period will depend on the owner’s current management agreement, but the tenant’s lease does not need to end simply because the property manager changes.
A review doesn’t have to begin with a formal complaint or a major failure.
It’s simply good due diligence.
Shannon’s advice was to start by asking:
When did your property manager last update you before you had to ask?
Are maintenance requests being followed through, or simply forwarded?
Are quotes being actively chased?
Is the tenant being kept informed?
Are you receiving useful advice when a decision needs to be made?
Do you know whether your current rent, lease and management arrangement are still serving the property?
And most importantly, does your property manager reduce the amount of time your investment takes from you, or add to it?
The cost of poor management isn’t always immediately visible on a statement. It can appear as maintenance that becomes more expensive because it was left too long.
If a landlord decides to change, the process should not be handed back to them to manage.
“Property management should make owning an investment property easier,” Shannon said.
“If an owner is constantly chasing information, that is a strong sign the service needs to be reviewed.”
“They don’t need to decide to change before speaking with us. The first step is understanding what is happening now and what their options are.”
Place One Group is offering confidential Property Management Reviews for landlords who want to examine their current service.
The review covers communication, maintenance, the lease and rental position, fees and charges, the existing management agreement and the process required if the owner chooses to move.
Because if you’re still chasing the person you pay to manage your property, it is time to review them.
