NOT ALL PROPERTY MANAGERS ARE CREATED EQUAL

Not all property managers are created equal!  What do we mean? In the world of property investment, one of the most critical decisions you’ll make is choosing the right property manager. While many companies promise to “take the stress out” of managing your rental property, the reality is that not all property managers are created equal. Some will genuinely add value to your investment, while others may cost you more than they’re worth.

In this post, we’ll explore what sets great property managers apart from the rest, the red flags to watch out for, and how to make an informed decision that protects your investment and your peace of mind.

The Illusion of “Stress-Free” Property Management

Many property management companies market themselves with promises of stress-free service, guaranteed tenants, and maximized returns. They often offer enticing perks like free appraisals, no upfront fees, or even a “free lunch” for your rental business.

But behind the glossy brochures and slick websites, the quality of service can vary dramatically. Some companies are genuinely committed to providing excellent service, while others are more focused on volume and profit margins than on your property’s long-term success.

Why the Right Property Manager Matters

Your property manager is your eyes and ears on the ground. They’re responsible for:

• Finding and vetting tenants
• Collecting rent
• Handling maintenance and repairs
• Ensuring compliance with tenancy laws
• Representing your interests in disputes

A good property manager can help you avoid costly mistakes, reduce vacancy rates, and maintain the value of your investment. A bad one, on the other hand, can lead to missed rent, property damage, legal issues, and a whole lot of stress.

Common Complaints About Poor Property Managers

Let’s take a look at some of the most common issues landlords face with subpar property managers:

1. Lack of Communication

One of the biggest complaints from landlords is poor communication. You might find yourself constantly chasing your property manager for updates, or worse, being left in the dark about important issues like rent arrears or maintenance problems.

2. Inadequate Tenant Screening

Some property managers rush to fill vacancies without properly vetting tenants. This can lead to tenants who don’t pay rent on time, damage the property, or cause issues with neighbors.

3. Slow or Poor Maintenance

Delays in addressing maintenance issues can lead to bigger problems down the line. Worse still, some managers cut corners by hiring the cheapest contractors, resulting in substandard repairs.

4. Hidden Fees

Some companies advertise low management fees but then hit you with a range of hidden charges for inspections, maintenance coordination, or lease renewals.

5. Lack of Local Knowledge

If your property manager doesn’t understand the local rental market, they may set the wrong rent, fail to attract quality tenants, or miss important legal requirements.

What to Look for in a Great Property Manager

So, how do you separate the wheat from the chaff? Here are the key traits of a high-quality property manager:

1. Transparent Communication

A good property manager keeps you informed every step of the way. They respond promptly to emails and calls, provide regular updates, and are proactive in addressing issues.

2. Thorough Tenant Screening

They have a rigorous process for checking references, credit history, employment, and rental history. They don’t just fill vacancies—they find the right tenants.

3. Efficient Maintenance Management

They have a network of trusted, qualified tradespeople and ensure that repairs are done quickly and to a high standard. They also conduct regular inspections to catch issues early.

4. Clear Fee Structure

A reputable manager will be upfront about all costs. There should be no surprises when you receive your monthly statement.

5. Local Expertise

They understand the local rental market, including average rents, tenant expectations, and legal requirements. This helps them set the right rent and ensure compliance.

Questions to Ask Before You Sign

Before you commit to a property management company, ask these critical questions:

• How do you screen tenants?
• What is your process for handling maintenance requests?
• How often do you inspect properties?
• What fees do you charge, and what do they cover?
• How do you handle rent arrears? And how quickly do you act?
• Can I speak to some of your current clients?
• What contract do you use?*

Their answers will give you a good sense of their professionalism, transparency, and commitment to service.

Real-World Examples: The Good, the Bad, and the Ugly

The Good

One landlord shared how their property manager helped them navigate a tricky situation with a tenant who lost their job. The manager worked out a payment plan, kept the landlord informed, and avoided a costly eviction. That’s the kind of proactive service that adds real value.

The Bad

Another landlord discovered that their manager hadn’t inspected the property in over a year. When they finally did, they found significant damage that could have been prevented with regular checks.

The Ugly

In one extreme case, a property manager failed to lodge the bond with Tenancy Services, leaving the landlord exposed to legal action. This kind of negligence can have serious consequences.

The Cost of Getting It Wrong

Choosing the wrong property manager can be expensive. Here’s how:

• Lost Rent: Poor tenant selection or slow action on arrears can lead to months of unpaid rent.
• Property Damage: Neglected maintenance or bad tenants can result in costly repairs.
• Legal Trouble: Non-compliance with tenancy laws can lead to fines or tribunal action.
• Stress: Constantly chasing your manager or dealing with issues yourself defeats the purpose of hiring one.

How to Switch Property Managers

If you’re unhappy with your current manager, switching is easier than you might think. Here’s how:

1. Check Your Contract: Look for the notice period and any termination fees.
2. Give Written Notice: Follow the process outlined in your agreement.
3. Engage a New Manager: They can often handle the transition for you, including collecting keys and documents.
4. Notify Tenants: Let your tenants know about the change and who their new point of contact is.

Final Thoughts: Don’t Settle for Less

Your rental property is a significant investment. Don’t entrust it to just anyone. Take the time to research, ask questions, and choose a property manager who will treat your property like their own.

Remember, a great property manager doesn’t just collect rent—they protect your investment, reduce your stress, and help you achieve your financial goals.

Need Help Finding a Great Property Manager?

Here are a couple of good resources, which contain a bunch of other questions: