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Property Management company - what to look out for

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  • Property Management company - what to look out for

    Hi all

    We're going to rent out our property in Mt Wellington and are in the middle of selecting a property management company. What should we be looking for from the company in terms of services and what fees could be hidden/should we expect? Ideally we want a company to take over the full management of the property so that were hands off - would this be considered a bad idea to be fully hands off?

    We're also looking for a manager who is a property investor themselves

  • #2
    Hi,
    I did this post below, a while back, note I am a property manager.

    I have been a property manager for nearly 10 years now.
    Over this time I have seen some good ones and bad ones. The bad has often outnumber the good unfortunately.

    I have put together a list of questions, which, in my humble opinion, I think would be handy for someone considering a PM - I'll try to be as unbiased as possible!


    • Does the PM specialise in PM?
      • Often have found many (not all) Real Estate agencies have a PM dept that is performing badly. This is because PM is not a main focus, just something the owner has tacked on to make some extra $$. It doesn't get much resource or attention.
      • Try a company that only does PM. They get 100% of the attention and resource.


    • Does the PM have an audited trust account?
      • As I'm aware Real Estate agencies have to have an audited account (and so do their PM's?).
      • Make sure your independent PM has an audited trust account and is not paying staff wages from the same account your rent is going into.


    • How long has the staff been there? (Staff retention).
      • This can be indicative of the management of the co. If the property manager has been there only 6 months or so, find out how long the previous one was there for.


    • How many properties does the PM look after?
      • There are numbers of up to 250 per manager I have heard. It is dependent of how whether they do their own letting or not. But 250 is a lot. Less than 100 is preferable.


    • Does the PM belong to a wider group that it is accountable to?
      • There are a number of organisations that a PM can belong to. The Independent Property Managers Association is a good one. They are a non-profit that has certain standards that are a benchmark for entry.


    • Who is the main owner?
      • In property there are a number of rogues unfortunately. Find out who the owner is and do a quick google. Make sure they are not a ex-bankrupt rogue who has set up a company out the back of a failed property development.
    www.harperproperties.co.nz

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    • #3
      Originally posted by mjbayly View Post
      Hi all

      We're going to rent out our property in Mt Wellington and are in the middle of selecting a property management company. What should we be looking for from the company in terms of services and what fees could be hidden/should we expect? Ideally we want a company to take over the full management of the property so that were hands off - would this be considered a bad idea to be fully hands off?

      We're also looking for a manager who is a property investor themselves
      Hi Mjbayly

      a) How many properties do they manage
      b) What are their processes for rent arrears
      c) What are their processes for maintenance
      d) What are their processes for tenant selection
      e) Do they offer a guarantor
      f) How long have they been in business for
      g) What are their arrears rates

      Thats a few that will get you started.

      Its not a bad idea no to give them the entire management, just don't give the property to them and take the 'set and forget' approach. Check in with them from time to time to ensure they are doing their job properly.

      Hope that helps
      Fraser Wilkinson
      www.managemyrental.co.nz
      Wellington / Lower Hutt / Upper Hutt / Porirua

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      • #4
        Thanks to both of you for your advice.

        We're liaising with multiple companies at the moment and we're struggling to work out why one company might be better than another for managing our place. Any thoughts or recommendations on points of difference that are important?

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        • #5
          See if you can locate some other clients
          of both companies and chat with 'em.
          Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

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          • #6
            NOT the fee - see the numbers here http://www.propertytalk.com/forum/sh...754#post386754

            Barry A at Quinovic Mt Eden is a good operator and has been in the game a long time. I'll PM you his contact details in case you haven't already got him on your (long) list.

            The questions that have been suggested here are good. Generally you want someone with experience (so they know how to handle tenants situations) and good systems.
            Free online Property Investment Course from iFindProperty, a residential investment property agency.

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