Landlord Guide to Easily Changing Property Managers
Changing property managers doesn’t need to be a troublesome experience. While it may seem much easier to forget about it and leave it in the ‘to-hard’ basket, switching Property Managers really can give you the peace of mind you need as an investor, all while saving you a lot of money.
If you’re thinking of changing property managers, then it is safe to assume that you are not happy with the level of service you are receiving at present. If you went out for a dinner and ate the worst meal of your life, you’d never go back to that restaurant again – right? If you paid for your carpets to be cleaned by a professional and they left a great big dirty mark on your living room floor, you wouldn’t ask them back again, would you?
The same should be thought about property managers. You are engaging a provider to perform a service. If you are unhappy with the level of service they provide you then it’s time to start looking elsewhere.
Our Top Tips for Easily Changing Property Managers
What don’t like you about your current Property Manager?
In order to make your search for a new Property Manager easier, it is important to understand what it is about your current real estate that is not working for you. Whether it be their limited or complete lack of communication, inaccuracy or simply not bad attention to detail.
Here are a few questions you should ask yourself about your current property manager. These are all standard expectations of good property managers. If you answer no to any of the below questions, then shopping elsewhere is definitely required.
- Are you, as the landlord, responded to promptly & efficiently without having to constantly follow up from emails and phone calls?
- Does rent come into your account reliably and consistently every month?
- Are you offered fortnightly or monthly dispersal of your funds?
- Do you receive 3 – 4 routine inspections per year?
- When tenants leave, are you confident that your property manager is doing everything they can to efficiently have the property re-tenanted in the shortest possible time?
- Are potential new tenants being engaged with promptly, as well as being properly screened for credit history, employment, prior tenancies and for their ability to pay rent?
- Are repairs attended to quickly by professional tradespeople who have a high standard of work, a warranty & insurance?
- Are the fees you are charged in accordance to your initial agreement without any surprises?
With this information you can then have a list of questions to ask your new agency when interviewing them.
Have a copy of your Appointment of Agency form on hand so you know when you can terminate with your current agency. A Reappointment of an Agent Form (Form 6) will enable you to end the agreement after 30 days written notice. However, if your agreement was under the older PAMD Form 20a then you may need to wait 90 days to change. You can terminate a lot sooner if both yourself and your old agency agree to the termination.
Select Your New Agency
Best place to start is to ask your friends for any recommendations. You can then make a call to speak with a senior team member for each company that you like the look of. You should expect to receive, as minimum:
- Company Prospectus
- A rental Comparative Market Analysis (CMA) to give you an indication of what is happening around your investment.
- Marketing suggestions for your investment
- An opinion of the rental value of your property, based on evidence and local knowledge
- The ability to show value for the Commission they are charging. Value for money is different to being cheap. Cheap equals cutting corners to make a profit!
So, you’ve made a choice. Now what?
This is where a great agency can be invaluable to helping your transfer. Your new agency should prepare all of the necessary paperwork for you. Once you have signed and approved, your agency should contact the previous agency to book in a date for a smooth transfer.
Will I have to contact my current agent?
It is not normally necessary for you to contact your current agent. You new agency should handle the whole process for you. They will ensure all the necessary documentation is completed and your tenants are notified of the change.
It’s that easy?
Yes! Your property will be taken over on the handover date, tenants will pay their rent directly to the new agency and you can start to enjoy the benefits of having changed your Property Manager.
It’s important to start off with your new Property Manager
Your new senior property manager should arrange their own inspection of your property and prepare a written report for your review. This will assist to ensure that new Property Manager checks for any issues that could pose a risk to your investment.
Armed with this information, you can then plan to attend to any potential issues over time and mitigate the need for any emergency call outs (e.g. a plumbing health check can be booked rather than an emergency call out for a burst pipe).
Now that you’ve made the switch you can finally have comfort in the knowledge that your investment is in safe hands with your new agency.