Property Managers: Are They Worth Using?

Jackson on 16/01/2025 - 13:10
Last edited 16/01/2025 - 13:30

My property manager seems like a useless sack of …, reason being:

  1. He didn't advertise the place before the last tenant moved out despite having a full month notice at least
  2. Then a few days after the tenant moved, he suggested I redo floors and paint. In hindisght, I feel like this was clearly because he forgot/was too lazy to advertise and needed an excuse
  3. When I told him "I'd think about it", he somehow took that to mean just not advertise the place at all in the meantime. Why? I have no idea
  4. A month later it still wasn't advertised and he contacted me again asking if I had made a decision on the renovation. At this point I realised this guys hasn't done anything at all to get it leased, despite him knowing that it was going to be vacated over 2 months before
  5. I went to inspect the unit, and it's not that bad, there's some marks on the wall and the carpets are a bit tired, but it's a 50/50 on whether you would do it now or in the future
  6. One thing that was noticed was that the end of lease clean didn't happen, even though it was 2 months out from when the last guy left. Again shows that there was zero effort to actually lease the place

This is the only property manager I've ever used, and I've self managed many times and it's been pretty easy and straightforward, if sporadically a little time consuming, but I figured I would try this guy out. I honestly feel like I'm better off just doing it myself because he's causing more issues for me than he's resolving, it's one thing to pay 5% plus extras but when your place is vacant and not even advertised he's costing me a lot more money than that.

What are others opinions on this? and as customers is there any recourse outside of sacking him?

Financial

Comments

  • skid on 16/01/2025 - 13:17
    +8

    You could sack him and find another manager or manage it yourself.

    However, the manager was thinking that the place needed a freshen up with new paint and maybe floors but those things can't be done until the tenant moves out. The manager probably should have communicated this to you. When you said you'd think about it, the manager took that as being on hold pending the decision as the place can't be painted while it is being advertised. You should have straight up said no, you won't paint it and to advertise it asap.

  • ramb9 on 16/01/2025 - 13:20
    +3

    You need a new guy, good PMs are generally alright. I'd say… it's probably worth it - they should get good to a point where you don't need to think about the property at all unless there's some sort of request.

    ie.
    1. organize with tenant for inspections before lease finishes.
    2. will let you know on fixes before lease ends and generally there's minimal down time between tenant transition.

  • CodeXD on 16/01/2025 - 13:25

    His thinking makes sense in that there he cannot put an ad out if you're 'thinking of redoing the floors and paint'. You should have just said "no, please put the ad out" if that was what you want him to do. If you did redo the floors and paint then new photos is recommended so the place will look newer and thus can attract more people.

    • Jackson on 16/01/2025 - 13:27
      -2

      I get that, but why was I neither asked about the renos a month before? Nor the place advertised? I feel like he's done Sfa and then came up with the excuse in post

      • chichi on 17/01/2025 - 12:27

        Reading your replies you never intended to do any renovations. You should have said that straight away.

  • TimmyTims on 16/01/2025 - 13:29
    +4

    Sounds like one of the better agents to be honest. Playing devils advocate you could come up with a reasonable reason for each of you're complaints;

    1. In the current market he figured it would go very quickly. Missing a week of rent was worth not having to deal with organising inspections with the tenant ( massive pain for both sides)
    2. Upon inspecting, noticed new floors and paint could benefit you so gave you that feedback.
    3. New floors and paint really need to be done with the property as vacant. You not giving a firm answer is your own fault as it looks like he was waiting on you
    4. At least the agent did follow up with you. Waiting weeks and weeks for owners reply is nothing unique in real estate.
    5. Sounds like the agent was right to make the suggestion

    At the end of the day it's how much risk are you comfortable with? Agents will give you advice and help if you ever need to go to the tribunal. If the agent picks up/ returns your call within 24 hours, I would keep them.
    Maybe ask your new tenant how the agent is as well after a while. An unhappy rental provider and/ or tenant makes the whole situation much harder

    • Jackson on 16/01/2025 - 13:35

      My thoughts are that the agent has 1 job: make sure the place is rented. You said yourself that the market is hot, why wouldn't you just advertise and then see if someone is keen? It makes no sense for a place to be vacant for months that's thousands of dollars in lost rent that would have paid for the renos.

      I also feel like if it had been advertised on time it would have actually rented, and the whole question would have been moot. But waiting 4 weeks and not even advertising then?

      He's also lied about advertising it (he reckons he did, and stopped the advert over Xmas) and suddenly when we made it clear to him that it w should be advertised someone wants it withing 2 days

      • TimmyTims on 16/01/2025 - 13:46
        +2

        Agents 1 job is to do the best by the owner. Renting it straight away may have been the right move for you, but it's not the right move every owner.

        Have you communicated to the agent what you want out of renting your property?
        Do you want little stress? (prioritise a good stable tenant over returns)
        Or do want maximum $$$?

        • Jackson on 16/01/2025 - 13:50
          -3

          Yeah, the current tenant has been there for years, he came during covid for way under market value and then the agent was very slow raising rents when things came back to normal. It honestly felt like the guy was getting favours from him he was so slow.

          I don't really look at whether I want to "maximise return" over other factors like stable tenants and having to or not having to improve the unit. My philosophy is that a fair market value should be achieved for a good condition unit. I am neither here to rip anyone off nor provide charity, and I especially don't leave things unfixed or in bad condition, because no one should have to live in sub par accommodation.

          • chichi on 17/01/2025 - 12:24
            -1

            @Jackson: Love your attitude. Hope you get the tenant you deserve.

    • ramb9 on 16/01/2025 - 13:46
      +1

      Devil advocating your devils advocate

      1. "not having to deal with orgsniation inspections with the tenant" - just means hes not doing his job, hes paid for this 'not worth to deal with' stuff
      3. hence why a good agent would've timed this and also offer to organize tradies to do it in the week its off market etc.
      4. true
      5. personally, if the carpets aren't smelly, it's generally alright after a clean… lol

      I'd say the agent is just taking the piss

  • Kongzi on 16/01/2025 - 13:42
    +8

    You both are poor communicators

  • jv on 16/01/2025 - 13:48
    -1

    Property Managers: Are They Worth Using?

    Yes

    My property manager seems like a useless sack of …

    🔥

  • justworld on 16/01/2025 - 14:19
    +1

    Sounds like you have a bad PM

    Yes property managers are 100% worth it - you pay them 5.5% (really 2.9% after tax) to serve as a middleman and admin assistant for the property. Means the only time I have to worry about my property is when there's a maintenance request (and routine ones have auto-approval) or lease renewal.

    Your PM works for you so if you don't like the PM, change the PM or change the firm.

    I had to change my PM once after she kept suggesting I set rent below market rate, as if she were gaslighting me or something. Every time I'd tell her to set the rent at 25-40$ per week over her suggested rate and every time I had no difficulty finding a tenant.

    • Jackson on 16/01/2025 - 14:39

      Yeah this is my gut feel. I know the situation is basically move on and find a new agent, or simply do it myself, but finding a decent one seems like pot luck. Also it seems that there's no fiduciary duty for these guys even though they manage your investment for you?

      • justworld on 16/01/2025 - 14:47

        No fiduciary duty as it's just a contractual service - they're not providing financial advice or management. Ask around on landlord forums for recommendations.

        • Jackson on 16/01/2025 - 15:03
          -1

          Having said that, they are contracted to provide a service rvice and then not really providing it IMO. I don't know if I even have a written contract with this guy, but there should be some standard obligations for this type of service you would think

  • freefall101 on 16/01/2025 - 14:44
    +1

    When I told him "I'd think about it", he somehow took that to mean just not advertise the place at all in the meantime. Why? I have no idea

    Seems reasonable to me, you shouldn't have hedged on it. If they organised a tenant then had to go "sorry, the landlord decided to renovate", he's just pissed off a potential tenant. You saying you'd think about it put the ball in your court, he was at least proactive enough to follow up with you when you never responded on your decision.

    But that they didn't follow up on the end of lease clean is a good reason to turf them.

    • Jackson on 16/01/2025 - 14:56
      -1

      I wasn't "hedging", I didn't have time to visit to see what the issue was, and in photos it looked fine. I couldn't fathom the fact that someone wouldn't just advertise it first, as if a tenant came along you wouldn't be pissing them off by just renting to them and leaving it as is

      • freefall101 on 16/01/2025 - 15:21
        +2

        Why didn't you say that instead of saying you'd think about it? No matter how you thought that would be taken, they acted in line with what you said, not what you thought you were saying.

        And they wouldn't advertise it because you were thinking about renovating (even though you apparently weren't). If they rented it as is, you can't renovate anymore.

        I get where you're coming from, but if you don't clearly say something it's not totally on them that they acted based on what you actually said.

        • Jackson on 16/01/2025 - 15:29
          -1

          I figured I would need to visit to understand if there was an need, and didn't figure that it would play at all into whether the unit, which should have been advertised for weeks already, wouldn't be advertised (see comment below) but I said that already.

          Either way, it's seems odd that this is really one of those situations where if a guy drops the ball completely on the job, your only recourse is to sack them. It's like I have signed up to be an employer, rather than paying for a service that I am not getting.

          • freefall101 on 16/01/2025 - 15:33
            +1

            @Jackson: Yeah, it is pretty rubbish. Usual recourse would be to get money back for the services not done, but I assume they don't get paid while it's not being rented, so they can argue they did all the work they were paid to do.

            Maybe try say they didn't do their job through the last month of a tenant being in? I guess you could sue them for loss of income (IANAL though, and a lawyer would probably cost more than you'd get back)

  • Wumpus on 16/01/2025 - 14:59
    +1

    I am a property manager. In Victoria we usually advertise the property 3 weeks prior renter move out, this help to start the inspections early and minimise the vacancy. This is a common practice most good agents do, which I never seen anyone not doing this.

    Despite the necessity of doing the reno, he should have posted your property online and start the advertising. Maybe he's trying to push you for the reno and take commission from trades? Illegal but some agents does that.

    You should contact his manager or director to seek compensation on not leasing your property and it caused a quite long vacancy already.

    • Jackson on 16/01/2025 - 15:00

      He's the director of the business, so there isn't anyone to contact. That's why I was wondering what fiduciary duty he has to do his basic, basic job that we pay him for. I have felt something has been fishy with this guy for a while, but it s come to a head now. Maybe he has a gambling or drug addiction he has to feed, or he's just a dodgy businessman.

      If he's the owner and not willing to compensate, how do you make a case?

      • Wumpus on 16/01/2025 - 15:50

        You might want to demand him to compensate you the loss of rent during the vacate because it's his neglect of duty which caused your financial loss. However, if he doesn't act in sense, then you might want file a compliant with Consumer Affair (assume you are in Vic). I am not sure what level of assistance that consumer affair can help you with, because I never come across to this kind of situation.

        • Jackson on 16/01/2025 - 17:22

          Maybe I can speak to fair trading and they can help?

  • knobbs on 17/01/2025 - 10:28

    Stay away from Amir Prestige and Carly if you are in Qld

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