Good Property Manager: 3 Ugly Property Management Mistakes

If you make the wrong decision about managing your investment properties, are you aware of how dangerous it could be, or how much it could cost?

Let’s start by discussing the art of maximising your rental return.

Even under-renting a property by $20 per week costs you over $1,000 per year. $1,000 is a lot of money, but over time for a long term buy and hold property, we’re talking about life changing amounts. Compounded for growth at 5% over a 40 year per period, that same weekly rent shortfall could cost your retirement, or your children…

Rohan Alexander and his team from Lifestyle Property Agency manage quite a few of our client’s properties right across Sydney.

All too often, we hear stories about how some people think they can save a few dollars by self managing investment properties and I wanted to get his expert opinion on why this was a terrible idea.

Rohan was able to break it down to the three biggest mistakes that self managed landlords make. Here’s what he said:

Yes, a good property manager is technically an expense, though when you hire experts, you should be getting a return on your investment.

A good property manager shouldn’t COST you money, they should MAKE you money.

As an agency, Lifestyle would be one of the very few that actually has the director of the business manage rent reviews and tenant approvals.

Rohan says he feels it’s imperative that someone in a senior position handles the two fundamental most important aspects of property management.

The key to all this with a good property manager? Communication.

Rohan says picking up the phone and letting owners know what’s happening is the number one thing they do and also the number one reason people leave agencies. A close second would be being proactive to the owners’ needs rather than firefighting.

So if you are even considering managing your own property, my strong recommendation is DON’T DO IT!

If your property manager doesn’t keep you in the loop, do proper due diligence on tenants, or conduct regular rental reviews, you have two choices:

1- Ask them why
2- Find a property manager who will

Of course, we’re more than happy to make an introduction to the team at Lifestyle Property Agency. Just have a chat with our team and I’ll put you in touch if I think they’ll be a good fit.

By letting us make the introduction and going through Your Empire rather than direct to an agent, we use our bulk buying power to get even better service, rather than trying to get a discount. For example, when covid came, we could negotiate a process that all our clients would benefit from so that they were less likely to have to drop the rent from a non genuine tenant trying it on.

If you have an investment property, we can help you too. Let’s chat.

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