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When you hire a property manager, you expect them to do all of the hard work for you.
They’re responsible for handling the day-to-day operations of your investment property. That means taking care of your tenants’ needs and ensuring that everybody’s happy with the arrangement.
More importantly, your property manager has to act in your best interests.
They need to keep track of market conditions so you know when it’s time to raise your rents. They’re responsible for filling your property whenever there’s a vacancy.
They handle all of the documentation and financial records. Plus, they create contracts relating to how people rent your property.
Most importantly, they’re responsible for making sure you get your rental income on time.
It sounds like a dream.
So why do things go wrong so often? Why are there so many investors losing money because they’re not getting paid on time?
It’s not due to the tenants. There’s no such thing as a bad tenant.
There are only bad property managers. Bad property managers attract bad tenants, great property managers attract great tenants.
A bad property manager messes things up so badly that you end up losing money on a great investment.
That’s the problem that John and Michelle had when they came to Wealth for Life.
Helping John and Michelle Deal with a Vacancy Issue
On the face of it, John and Michelle had an awesome property.
A four-bedroom house in Clyde North, this property offered everything that a family could want. And the market proved it. Similar properties got filled almost as soon as they became vacant.
That wasn’t the case for John and Michelle.
Their property had sat vacant for four weeks. That meant they’d gone an entire month without collecting any rental income.
That’s a long time for any rental property. But for one in as hot an area as Clyde North, it shouldn’t even be possible. That property should have tenants at all times.
The issue came down to a loud dog.
When potential tenants visited the house, a neighbour’s dog barked its head off. This lasted for entire viewings and completely put people off.
The couple’s property manager wasn’t coming up with any way to get around the issue. They just kept ploughing ahead with the efforts. Each time they brought someone to the property, the dog barked and the potential tenants ran.
John and Michelle needed more creative thinkers. That’s when Wealth for Life property manager Nicole Byrne stepped in.
Nicole recognised the crucial part that viewing plays when attracting tenants. Immediately, she put a plan into place. Instead of holding viewings during work hours, she’d hold them during the evening.
By that point, the neighbours had returned home and the dog was inside the house.That meant no more barking during viewings. Instead of potential tenants focusing on the noise, they could look at the property’s amazing features. These included a deck, fully-fenced section, and a beautiful location.
Nicole took over the management duties. And during the whole process, she kept in touch with the couple to let them know what was happening.
She told then how many viewings took place, the status of each potential tenant, and the results of their checks.
In just 9 days, she found the perfect tenants for the property.
Of course, managing a property doesn’t stop when you’ve found tenants.
Nicole continues to manage the property on the couple’s behalf. She communicates every issue back to them quickly and ensures the protection of their best interests.
With a bad property manager, John and Michelle lost $1,680 due to not having a tenant.
With us, they have an occupied property that’s generating an income of $420 per week.
What’s the Secret?
There’s one crucial ingredient that sets us apart from other property managers.
We’re investors ourselves. Most of the Wealth for Life team owns investment property. This puts us in the unique position of understanding exactly what our clients need from their property managers.
We’ve been there and we’ve lived it – both the good and the bad.
That means we have the experience needed to provide an amazing service. Our property managers always look out for your best interests because they know exactly what those interests are.
Five Signs That Your Property Manager Isn’t Invested in Your Success
John and Michelle’s fortunes changed as soon as they came to Wealth for Life.
You need to know how to avoid the situation that they found themselves in. That means knowing exactly what to look out for when choosing a property manager.
These are the signs that you need to give a manager the boot.
Sign #1 – They Have No Experience
This doesn’t relate to property management experience here. A manager may have worked in the industry for years.
This relates to whether or not the manager has their own investment property.
If they don’t, they have no real idea about the issues that affect landlords. They’re not going to work in your best interests as a result of that.
Look for someone who’s been in your shoes.
Sign #2 – You’re Struggling to Find Tenants
You’ve done the research and know you have a property that suits the market.
It should not sit vacant for an extended period of time.
Some investors wait weeks, or even months, for their property managers to find tenants. If that’s happening to you, it’s time to make a change. You’re going to lose thousands of dollars in rental income because your manager doesn’t have the right strategy.
Sign #3 – The Rents Are Not Getting Paid
This is the cardinal sin for all property managers.
They’re responsible for making sure you get your rents on time. If that’s not happening, it’s not down to the tenants.
It’s the property manager’s fault.
Late rent payments affect your cash flow. This could leave you without the money you need to pay the bills and it can slow down your portfolio building.
Sign #4 – They Make Excuses
There’s nothing worse than confronting someone with an issue, only to have them try to duck and dive out of the way.
You have a problem that needs solving and they’re doing everything they can to stop that from happening.
That’s what happens whenever your property manager doesn’t give you straight answers. As soon as they start making excuses for their results, it’s time for you to look elsewhere.
Sign #5 – They’re Not Putting In the Hours
John and Michelle’s property manager could have solved their problem. All they’d have to do was work a little overtime to make it happen.
They weren’t willing to put in the time, which cost the couple over $1,500.
If your property manager isn’t willing to go the extra mile when finding tenants, you can’t trust them to represent your best interests later on.
The Final Word
Great property managers handle all of the hardships for you. They find tenants, keep them happy, and communicate with you every step of the way.
Most importantly, they always work to your best interests.
Don’t accept a lazy property manager who isn’t putting in the hours. That’s how you end up with vacant properties and late payments.
In both cases, this affects your income.
Your investment’s meant to boost your income, not leave you wondering where the money is.
You need a property manager who’s also an investor. And that’s where Wealth for Life can help. All of our property managers invest too, which means they know exactly what challenges you face.
Book your one-on-one session with a Wealth for Life advisor today and learn how you can escape your fear and build an amazing future.