The 5 signs it could be time to switch property managers
Property investors don’t usually leave a manager over one small mistake ... it’s the pattern that drives them away. Here are some of the main reasons you might decide to switch.
#1 – Your tenant stops paying rent
Let’s say your tenant falls behind on rent. You’ll probably be worried about how you’ll pay the mortgage.
So the #1 reason for switching property management companies is if your tenant stops paying rent.
#2 – Your property manager doesn’t communicate with you enough
It’s rarely just the missed rent that causes frustration; it’s when you aren’t told about it.
If you start thinking: “This property manager isn’t communicating with me. If they’re not replying to me, are they even following up with the tenant?” it could be time to switch managers.
#3 – Your property manager picks bad tenants
A good property manager shouldn’t just accept the first tenant who applies for your property. Instead, they need to take time to find the right tenant.
It goes without saying that your property manager should be getting references and credit checks.
And, of course, the basics matter. If they:
- Didn’t take a bond
- Didn’t do a property inspection every 3 months
- Or are sloppy in their inspections
It’s time to think seriously about making a change.
#4 – Another company has lower fees
Most property managers charge a percentage of the rent they collect. This is usually somewhere around 8–9% + GST.
But some companies add extra costs for things like routine inspections, tenant sourcing fees or admin charges.
So while one company might look cheaper upfront, the hidden extras can quickly add up.
So, some investors change to get lower fees. That can mean more money in your pocket each month.
For instance, here at Opes Property Management we charge 8% + GST of rent and a tenant sourcing fee of 1 weeks’ rent + GST.
From our research this is slightly below the average cost in the industry. We like to deliver a good service at a fair price.
#5 – Another company offers better service
Sometimes you’re not chasing cheaper fees, you’re chasing better service. That can mean different things to different people.
To give you another example, here at Opes you can have you property manager, mortgage adviser, accountant and financial adviser all work for the same group of companies (Opes).
To make things even easier for investors, we’ve also launched Opes+. This is our app where you can see all your mortgage, property management and accounting information in one place.
That makes it easier for investors to manage their portfolios and is an example of one way we give a better service.
Or maybe you’ve heard about another company that’s faster at communication, better with tenants, or just seems more proactive.
A switch isn’t always about escaping a bad experience. Sometimes it’s just about upgrading to something better, or more your style.
