Manage My Property

We've been shocked by the sort of sloppy service going on in the real estate industry today. It's simply unacceptable. I'll show you why having a normal real estate agent managing your investment property could be costing you thousands of dollars... and leaving you exposed to unnecessary risks.

Take this simple quiz to evaluate whether your real estate agency is doing everything they can to help you save money, avoid bad-egg tenants, protect yourself and your property, and maximise your return on investment...

Question # 1:
Has your real estate agent told you how to avoid the risks associated with tenants defaulting on their rent, how to avoid damage to your property?

Would you like to know how to eliminate almost all your concerns about owning a rental property? Problems like tenants defaulting on their rent or tenants damaging your property?

Question # 2:
Has your real estate agent told you how many properties each member of their property management team looks after?

How many properties can a single property manager provide a quality service to? A ratio of 1 staff member to 140 properties is widely known in the industry as a comfortable figure, however there are many agencies that have in excess of 200 properties per staff member on their books, making it virtually impossible for them to do their job properly. The first thing they get behind on is routine inspections that should be conducted at least every 17 weeks. This leaves you at risk of tenants doing significant damage to your property.

When was the last time your agency conducted a routine inspection on your investment property?

Question # 3:
Has your real estate agency told you whether they give YOUR keys to tenants to look through your property?

Did you know there's some sales-based agencies that hand out keys to prospective tenants because their property managers can't be bothered showing prospective tenants through vacant properties? What's wrong with this? Firstly, a prospective tenant has unsupervised access to your property and they can easily make copies of the key. The thought that a stranger is wandering the streets with a key to your home is a scary thought for both you and your tenant.

There's also the risk of appliances being left on, or the house not being locked after the inspection, leaving you at risk of un-insurable theft (yes, if someone steals from a property and you gave them the keys, it cannot be insured). Do you know if your keys are being handed out to strangers?

Question # 4:
Has your real estate agent shown you what checks they do on tenants to ensure you don't end up with a bad egg?

One of my business mentors taught me that when dealing with staff you should hire slow and fire fast. Taking time to properly evaluate anyone you are dealing with, whether a staff member, or a tenant for your property is critical to the success of your relationships. Does your property manager do their due diligence before handing over a lease to a new tenant? For instance, do they:

  • Check out tenancy information databases (a log of people who have been bad tenants right across Canada).
  • Talk to the current employer.
  • Get payslips to ensure the tenant can afford the rent (ensuring the rent is not more than 30% of their income).
  • Get a reference from their previous rental manager.
  • Collect 100 points of ID.
  • Conduct a 30 minute interview with them prior to signing the lease.

Question # 5:
Has your real estate agent shown you when to rent out your property in order to maximise your rental returns and find someone fast?

Did you know the level of rental enquiry for properties is lower and higher at certain times of the year? Has your real estate agent told you that with a little negotiation you can achieve a premium rent by organising the lease on your property to only expire during the busy periods of the year? Do they even know the four different high demand months when you should be looking to lease your property? What about the low demand months which should be avoided at all costs?

If you answered yes to four or five questions, then stay where you are. Your real estate agency is doing a pretty good job and you should stick with them as they are one of the rare few professionals in this industry.

However, if you answered no to two or more questions, then please don't get angry at your real estate agent. They are very likely doing the best job they can. Just like a GP medical doctor cannot perform heart or brain surgery... just like a general mechanic cannot fix high end European cars like someone who focuses only on those cars... a real estate agency with a property management component cannot understand the property management industry like a company that ONLY does property management.