COMMON PROPERTY MANAGEMENT MISTAKES & HOW VERSE MAKES SURE THEY DON'T HAPPEN TO YOU!
There are some basic mistakes that many investors and property managers make while managing property. Simple mistakes often have simple solutions, other times it’s more difficult.
We’ve addressed some of the common mistakes below. They give you an insight into how Verse goes about making sure you’re a success story, not a casualty. Some mistakes are perfectly understandable – they may even seem like a preferred option. It’s only further down the track, when it’s too late, that the owner realises the mistake.
We want you to benefit from our experience and apply it to the management of your property.
Not being careful enough when selecting a tenant
Verse understands that if we’re vigilant with tenant selection, we address a host of potential problems. We’ve been in the game long enough to foresee these problems. Through our diligent and thorough approach to tenant selection, we combine qualitative and objective data to secure you a tenant that, will respect the lease conditions and maintain your property like it was their own. And, critically, that they will pay their rent promptly!
One thing we won’t do is rush the tenant selection process – and we are not afraid to advise you against accepting a particular application.
Lazy rent rises
Effective property management is not simply about managing your investment, but also maximising it. So often, property managers aren’t vigilant with rent rises that should reflect the current market conditions. Rent rises aren’t about causing unfair pain on the tenant, but simply keeping pace with what the market dictates. We have our finger on the pulse of tenancy rates, average weekly rents by suburb and property type so that we can ensure that rent increases are fair on both the tenant and Landlord.
Underestimating the amount of time it takes to manage a property
The management of your investment can often be left as an afterthought. With all the cost and time in acquiring your investment, there’s often an assumption that the management of the investment will look after itself.
Turns out it’s not so simple. Things go wrong. Things leak and break down. Tenants don’t pay their rent. Suddenly, you have big problems to deal with. Problems that usually require processes, a suite of service providers and some strong action.
Having a team with a legacy of experience and a single focus in dealing with the problems that arise, allows you to get on with living while we deal with management.
Getting too close to tenants
Desiring a good relationship with your tenant is reasonable, but when it clouds your judgement or stops you from enforcing the conditions of the lease, it no longer allows you to operate the ‘business’ of your investment. Verse maintains strong, positive relationships with our tenants—it’s essential to the operation of our business. But we also recognise that it’s you, the Landlord that we represent, and it’s your property that we’re managing!
A lazy approach to late rent
Cash flow plays a significant role in managing and building your investment portfolio. Late payment affects cash flow and a relaxed approach to rent collection is a compounding problem. Verse’s approach to rent collection is methodical, thorough and absolute. Quite simply, it is enforcing the commitment to which the tenant contractually agreed. We aim to be consistent, rigorous and timely in pursuing rent arrears.
A property manager who can't give you good information when you need it
A good management relationship is more than maintenance and collection, it’s also about information and access. At Verse, we use software that allows you to access all the information you may require on your property, tenant payments, documentation and maintenance. We provide summaries, a full rental history and easy access to the condition of your property. This information is available online whenever you need it.
This is not as simple to spot as you’d imagine. After all, just because an agency has been in business for 30 years, doesn’t stop the appointment of a property manager with 30 minutes experience!
Inexperienced property managers are unlikely to have dealt with the range of pitfalls and problems that arise in managing properties, nor how to deal with those problems. Further, without the involvement of directors in the business, they may be doing their best, but flying solo without the care or support of those who are ultimately the beneficiaries of the business.
Accepting a poor level of communication with your property manager
You’re paying a property manager to look after a big investment. It’s reasonable to expect they’ll communicate how the management of your property is tracking. Despite this assumption, many owners are content to rarely hear from their property manager.
What often lies at the root of this problem, is the ratio of properties to each property manager. Load an individual up with too many properties and it becomes impossible to maintain effective communication. At Verse, we ensure that manager/property ratios are managed to enable the quality of service and regularity of communication for which we are renowned. We provide regular electronic communication as well as to all details of your investment.
Appointing a property manager who doesn't respect you or the tenant
Like any relationship, if you don’t feel respected by the other party, it’s going to feel like a rough ride.
While common sense and common decency can seem rare commodities these days, at Verse, they’re in good measure. Our priority as property managers are our owners and tenants. Our concern for them is genuine and is reflected in the courtesy and respect we show. Aside from a desire to be professional in all our business dealings, we understand that our business is built on, and grows, through the effectiveness of our relationships with our clients.