Things to consider when choosing an agency to manage your property
Too often when I am asked for more details on our property management services, I am initially asked for our fee schedule. Yes this is definitely an important thing to check….but is it the MOST important thing to consider when choosing an agency ?? definitely not.
Cheap vs Best Value for Money ?
A cheap agency is one that has cheap fees but also cuts corners as a result, they may use limited resources, they may also pay staff little which means they are more likely to have staff change overs. An agency that is best value for money, knows what their profit margin is, pay their staff well, invest in training and the best resources necessary and prices their fees accordingly. In most cases they will offer you the same marketing and service as a more expensive agency but are more realistic.
Did you know that when you are trying to negotiate your fees with an agency from 9.35% down to 8.8% you are trying to save yourself a measly $3.00 per week !! (don’t forget that this is also tax deductible !) Property Management fees have been the same for probably more than 20 years yet costs have gone up (and yes rents have too I hear a lot of you say !)
What is important ?
- How is the department set up ? Is the agency set up with pods, so one person deals with maintenance, one person deals with leasing, one person does routine inspections, one person deals with tenants etc. OR are you given a property manager who manages the entirety of the property from viewings to final bonds ? OR a bit of both ?? It is important for you to be clear as to how this works so that you can consider the pro’s and con’s of each communication method
- Where will your property be advertised ? realestate.com makes up approximately 60% of our tenant enquiries therefore I suggest that this website is really important to be on. Other websites such as domain.com.au and reiwa.com.au are also important for our industry.
- How are property managers monitored ? Who is the person in the office responsible for keeping an eye on the person looking after your property ? How are staff motivated to do a good job etc. It is a good question to ask ! You also need to know that there is a person within the company that is easily contactable should a problem arise
- What is the agency doing to reduce vacancy rates in this tough market ? Find out what the process and marketing plan is to minimise any lengthy delays with renting out your home.\
- Ask to look at the agency’s paperwork. Particularly a copy of the property condition report, routine inspection report and end of month statement. Make sure you are happy with the detail of these reports. Every agency’s will be slightly different.
Hopefully these little tips will give you a few ideas of questions to ask when meeting with an agency to do a rental appraisal and I hope to be able to answer all these questions for you when I meet with you. Feel free to contact me any time on 0416 352 679 or [email protected]