Changing property managers doesn’t need to be painful. While it may be a lot easier to just throw it all in the ‘too-hard’ basket, making the switch really can give you peace of mind and save you a lot of money.
If you’re thinking of changing property managers, then it’s safe to assume that you are not happy with your current provider. If you went out for dinner and ate the worst meal of your life, you’d never go back to that restaurant again, would you? Or if you paid for your car to be cleaned at a professional car cleaning place and they left a great big dirty smudge mark all over your windscreen, you wouldn’t go back there either, would you? The same should be thought about property managers. You are engaging a business to perform a service for you. If you are unhappy with the level of service they are providing then it’s time to grab the bull by its horns and start shopping elsewhere.
One of Calibre’s New Business Specialist, Emily Williams has come on board to help get your ducks in a row. Emily and her team enlist dozens of new property managements on a regular basis. They are passionate about ensuring their landlords are well looked after. Unfortunately however, for the real estate industry, there are a few ‘bad-egg’ property managers out there who are not servicing their landlords as well as they should be. That’s why Emily has shared with us her Top 5 Tips for painlessly changing property managers. By following her straightforward guide, you’ll be able to return to enjoying the rewards of a stress-free investment in no time.
Emily’s Top 5 Tips for Painlessly Changing Property Managers
It’s important to really understand what it is about your current management company that is not suiting you. Whether it be their lack of communication, inaccuracy or bad attention to detail. Emily has prepared a few questions you should ask yourself about your current property manager. These are all standard expectations of good property managers. If you answer no to any of the below questions, then shopping elsewhere is definitely warranted.
- Are you, as the landlord, responded to promptly & efficiently without having to constantly follow up from emails and phone calls?
- Does rent come into your account reliably and consistently every month?
- Are you offered flexible disbursements to suit you?
- Are you provided with 3 to 4 routine inspections per year?
- When your tenants vacate, are you confident that your property management are doing everything they can to efficiently have the property re-tenanted in quick turnaround time?
- Are potential new tenants being properly screened for credit history and prior tenancies?
- Are repairs attended to promptly by registered tradespeople who provide a high standard of workmanship, a warranty and insurance?
- Is there a sophisticated tenant booking system in place?
- Are the fees you are charged in accordance to your initial agreement without any nasty surprises?
With this information you can then have a list of questions to ask your new agency when interviewing them.
2. Be Armed And Ready
Have a copy of your Appointment of Agency form on hand so you know when you can terminate with your current agency. If your management is currently signed on a Form 6 – then you will be required to give 30 days notice unless the agency and yourself agree on a shorter timeframe (this can be immediately if both parties agree). However, if your agreement was under the older PAMD Form 20a then you may need to wait 90 days to change. You can terminate within 30 days notice if both parties agree to the termination if signed on a Form 20a, however no earlier.
3. Select Your New Agency.
Best place to start is to ask your friends for any recommendations. Also, check their Google reviews. You can then book an interview with the Business Development Manager at each company that you like the look of.
Expect to receive, as minimum :
a. Company Prospectus
b. A rental Comparative Market Analysis (CMA) to give you an indication of what is happening around your investment.
c. Marketing suggestions for your investment
d. An opinion of the rental value of your property, based on evidence and local knowledge
e. The ability to show value for the Commission they are charging. Value for money is different to being cheap. Cheap equals cutting corners to make a profit!
4. So, you’ve made a choice. Now what?
This is where a great agency can be invaluable. Saving you time and offering you a stress free service! All of the necessary paperwork can be prepared and once signed your agency should contact the previous agency to book in a date for a smooth transition over to their agency.
Will I have to contact my current agent?
It is not necessary for you to contact your current agent. You new agency will handle the whole process for you. They’ll ensure all the necessary documentation is completed and your tenants are notified of the change.
5. Is that it?
Yep! Your property will be taken over on the due day, tenants will pay directly to the new agency and you are notified that all has gone ahead smoothly!
Emily’s Extra Tip
Your new senior property manager should arrange their own inspection of the property and prepare a report for you. At this stage, it is great to ensure that your manager looks to check for any issues that could cause a future risk. You can then plan to attend to any potential over time and alleviate the need to pay for emergency call outs e.g. a plumbing health check can be booked.
Now that you’ve made the switch, you can put your feet up and relax. You’ve done the hard yards, now you can finally have comfort in the knowledge that your investment is in safe hands. There’s now a great agency working to ensure your investment is well cared for.
Here’s some other property management articles we thought you might appreciate :
- 5 Things You Need To Know About Claiming Tax Depreciation On Your Property
- How to Choose the Best Property Manager Made Easy
- How To Choose the Right Landlord Insurance For You
- The Best Brisbane Buyers Search Checklist for Residential Property
- Ten Tips About Buying Real Estate That Will Save You Money