Foolish Mistakes Property Managers Make.
Property managers – there are plenty of foolish ones out there. In fact, Nathan says he wouldn’t even employ 95% of property managers in the industry.
There are high achievers and low achievers in every field. If you want to be a high achiever in the world of property investing, you need to have a savvy property manager looking after your assets.
What to look for in a property manager.
Nathan says there are two crucial aspects to managing a property: compliance and maximising returns.
When it comes to compliance, your property manager needs to be 110%. They need to be highly competent to ensure everything is properly looked after. There have been many cases out there where tenants have died due to neglectful management. Fire alarms, child safety window locks and other safeguards need to be in place in order to minimise the risk of fatalities and prevent against legal action.
When it comes to maximising returns, a good property manager should work to minimise expenses as well as maximise income.
Proactive property managers are the best.
This is why it is of utmost importance to hire a proactive property manager. They will work on behalf of the landlord to ensure they get the most out of their investment.
A good property manager will conduct regular rental reviews while making sure the property is maintained in line with legal requirements.
Foolish mistakes property managers have made.
The biggest mistakes that property managers make, says Nathan, are when they work for the tenant, have poor communication skills and don’t have an eye for detail.
These characteristics could put your livelihood at risk by not allowing you to get the most from your investments.
Nathan says that one of his properties in regional Australia recently burned down. The property manager looking after the place had stopped looking after it – he hadn’t renewed and paid for the insurance, which meant Nathan lost $250,000.
He has also experienced problem tenants who tried to blame him for loss of their personal possessions, as well as property managers who sided with the tenants instead of him.
Experiences such as these have led Nathan to expand his own property management team, Blink, so that more investors across the country can have access to property managers who will help them get the most out of their investments.
Have you ever had a bad property manager look after your investment property? Please share your experiences in the comments section below.