Define Proactive in Property Management

Understanding proactive property management is essential for making smart investment decisions. 

In this episode, we discuss the importance of anticipating issues, share a real-life example, and challenge common misconceptions that often confuse reactive and proactive management. 

• Defining proactive property management and its importance and we will share a story illustrating the impact of proactive measures 

• Consequences of ignoring small issues and their potential ramifications 

• Common misconceptions about the responsibilities of property managers 
 
• Tips for choosing a proactive property manager 

If you have any questions or scenarios you would like us to discuss on an upcoming episode, please email samantha.eason@exclusivelymanaged.com.au or visit https://www.exclusivelymanaged.com.au/

Donate to the sleepbus foundation here.
https://www.sleepbus.org/services/sleepbusfund

Transcript

Speaker 1: 0:34

Welcome to another episode on Talking Property Management, the podcast that's all about helping property owners and investors make smarter decisions. I'm Samantha Eason, founder of Exclusively Managed, and today we're diving in to what it truly means to be proactive when managing property. And I'm saying it because you see it everywhere. We're proactive, we're proactive, but when I reach out to clients, when we're doing cold calls, I find that what they're actually doing is being reactive, it's not being proactive. So, in the world of property management, being proactive is more than just a buzzword. It's a philosophy that sets exceptional property managers apart. Being proactive isn't just about addressing tenants issues quickly. It's about anticipating problems before they arise and taking steps to protect the investment. Let me share an example that perfectly illustrates this for you.

Speaker 1: 1:42

Recently, while conducting viewings for one of our properties, we came across what seemed like a minor issue. As I was showing prospective tenants around the house, I noticed that the corners in the lounge room and the hallway just looked slightly off and at first glance it seemed like a cosmetic concern. You know, it's an old house, maybe that's completely normal. The owner had a building and pest inspection done because it is a first time investment purchase and, you know, nothing out of the ordinary was brought to light on the building pest inspection and it definitely didn't report any major structural problems. Now here's where it gets interesting. It's not uncommon for property managers to overlook something like this, especially when it doesn't appear urgent or obvious, and I guess in this situation you know we're very fortunate that it was a visual inspection on the cornice that gave away the roof issues that we're about to talk about. But many in the industry stick to addressing only what's immediately visible and, as you'll hear, sometimes it pays to dig a little deeper. And, as you'll hear, sometimes it pays to dig a little deeper. Being proactive means looking beyond the surface. I know from experience that when a corner shifts it can sometimes point to a larger underlying problem, whether that's roof movement, water damage and or structural wear. And with summer and storm season approaching in Brisbane, ignoring this small issue could have cost huge for the client and it would have definitely turned into a bigger problem, especially with just renting out the house.

Speaker 1: 3:30

So instead of stopping at the visual inspection, we called in a roofing specialist. We use Weatherproof. They are absolutely sensational and they service North Brisbane and Brisbane. So after they attended and they did their assessment, we found heaps of photos. Like they sent through a bunch of photos and they basically said that the roof was shit. Like I'm going to be very blunt there. They I've never had them put on a report. This is urgent, like I've never had that, and I've sent them to some old homes. So it needed about $3,000, three and a half worth of repairs to address, guess, the various cracked and damaged roof tiles and also the really poor sealing that was done beforehand. And this is where the proactive part comes in.

Speaker 1: 4:30

If we had not investigated this further, a major summer storm could have caused serious damage, most likely the one that we're going to be seeing next, and it would have resulted in more repairs required on the roof as well as the tenant needing to vacate the property which they have just moved into after looking for eight months into. After looking for eight months, um, and just an overall like just a shit show. Let's be blunt, let's be frank. It would have been awful. There would have been compensation for the uh tenants required. We would have had to pay their removalist fees.

Speaker 1: 5:15

The adjudicator I could hear them in court now. They would have asked well, if you know, why wasn't this checked? And you can't answer with oh, it's a new property, we wouldn't have expected it. The owner never told us yeah, but this? Let's look at the inspection report. This looks, you know, a bit off, and that's some of the things that you have to think of when it comes to QCAT and tenancy disputes is what will they say?

Speaker 1: 5:43

So this approach saved the owner thousands of dollars and protected their property from long-term damage. Plus, it meant that the tenant could feel safe and secure, knowing that their home was in excellent condition. Secure, knowing that their home was in excellent condition, weatherproof and safe. We apply this approach to all of our properties, assessing the lifespan of various elements and giving our clients a heads up well in advance. Each year, we have conversations with our clients about items that might only have another 12 months of use and some cases, we collaborate to create a comprehensive update plan that's implemented over a two to five year timeframe as well, depending on the owner and the situation, and I do this to ensure that our clients are prepared, which might explain why few of them experience stress over unexpected repair costs, and that is what proactive property management is all about.

Speaker 1: 6:44

So I've said this a few times if you're looking for a new property manager. Tell them to explain to you what they understand proactive mean in their day-to-day role, and I'd be surprised to hear what they say, because I reckon that a lot of property managers would answer with oh you know like we respond to tenants maintenance issues very promptly. That's part of your job. Like that's being reactive. That's not being proactive. So you're reacting to the tenants maintenance job and or request and you're reacting to the tenant's maintenance job and or request and you're doing your job. That's not proactive.

Speaker 1: 7:23

What proactive property management is? It's taking that extra step, looking past the obvious and acting in the best interest of the property and its owner and, of course as well, the tenants, and in this case, addressing, you know, a minor issue. With a cornice we were able to prevent a potential disaster. I know that seems far-fetched, but I walked into one on Thursday and it's a disaster. So as we head into storm season here in Brisbane, it's crucial to have a property management team that understands the value of being proactive and at Exclusively Managed. I believe in looking after properties like they're our own, ensuring that every detail is addressed to protect your investment. So thank you very much for tuning in to today's short episode on talking property management for tuning in to today's short episode on Talking Property Management. If you found this helpful, don't worry, I'm going to be doing more this year, but please don't forget to subscribe and share it with other property owners and investors. And until next time, remember proactive property management isn't just smart, it's essential.