Why is there a high turnover rate in property management?

By August 11, 2017 No Comments

Let me ask a question, how many property managers have taken care of your investment property? It started with one, went through another three, Simon, Kelly, Janine, and… do you even remember the name of your current one? I don’t blame you if you can’t.

How many weeks has it been since your property manager called you back or addressed an outstanding issue? Have they charged the tenant for excess water yet? Or has that been tossed to the back of the office for someone else to do… only that someone else is your property manager? So… it’s going to get done maybe never.

Are your tenants unhappy and reluctant to stay on board because no one is listening to them? If they have made a zillion phone calls and sent a swamp of emails to the office but been told that the property manager will get back to them but never does, how long do you think the tenant is going to wait for the lights to come on before issuing the landlord with a notice from QTAC?

Are you tired of trying to get in touch with your agent but they have a “courtesy” system for all responses called, well it’s just email really, and they don’t have a direct phone number for you to call and you just want to ask a simple question?

There are often numerous reasons for this. Many agencies just want to list, list, list and while listing is an important part of operating a property management department, agencies often forget that the key to good business is quality long-term service. And by this I don’t mean an automated system emailing you back, you know the one: “thank you for your enquiry blah blah blah.” No, you want real people talking back to you!

It should never be about the number of properties a company lists because many agencies end up listing more than they can manage, they overextend their staff. Therefore they lack in quality service and end up with a high turn overrate. Sound familiar?

Listing is a given. Without listings, a company would have no properties to manage, but there is a humble approach to gaining listings: don’t bite off more than you can chew and nurture those who put their trust in you!  Take care of them, the answer is simple really.

  • Don’t over list, only take on what you can manage.
  • Take immediate action on issues that landlords and tenants have (even if the answer is no, leaving them hanging is never the best approach).
  • Go the extra mile and offer clients additional ways to earn money on their investment property, tax depreciation, rent increase (whether or not to consider a rent increase—sometimes it’s not the best option), add small touch ups to the property, is it worth it? Your agent should be able to talk openly with you about your property and your expectations.
  • Always be realistic with the landlords and tenants. Being honest and open at the beginning helps to maintain long-term trust and a respectable relationship. For instance, be open with what you can/can’t do as a property manager, and always advise tenants and landlords on what their rights and responsibilities are. That way they aren’t hit with an unpleasant surprise three-weeks into a tenancy.

A good property manager will know this and go the extra distance to take care of your investment. If you are not being taken care of with your current property manager, the answer is simple. Change management.

Written by Nikki Heindl, Business Development Manager at More Estate Agents.

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