Talking Property Management
Welcome to Talking Property Management the podcast that dives into the untold stories and challenges of property management in Brisbane. Hosted by Samantha Eason, Principal and Licensee of Exclusively Managed, this show peels back the curtain on the not-so-pretty side of managing investment properties and mistakes made in the business.
From tricky tenants, untrained property managers, to unexpected maintenance disasters, Samantha brings her expertise and unfiltered insights to the table, offering listeners a behind-the-scenes look at the realities of property management.
Whether you're an investor, a landlord, or just curious about the industry, Talking Property Manager delivers honest conversations, practical advice, and a touch of humor to navigate the ups and downs of property management in Brisbane's unique market.
Join Samantha as she shares stories, tips, and solutions to help you tackle the challenges and make the most of your property investments.
And who knows, she could be talking about your property manager on the next episode.
Talking Property Management
Why Landlords Settle for Subpar Property Managers and How to Break Free
Ever wondered why so many landlords stick with subpar property managers even when better options are available?
Join me, Samantha Eason, as I unravel the mystery behind this perplexing trend. Drawing from my personal experiences, I highlight how the absence of complaints or visible issues can often mask poor service. This can lead to deferred maintenance and lackluster communication, ultimately jeopardising your investment. It's time to confront the fear of change and the low expectations that hold landlords back, and explore how a proactive property management agency can facilitate a seamless transition, safeguarding both your investment and your tenants’ comfort.
Let's challenge the status quo and demand superior property management services that truly reflect the value of your investments.
This episode is a call to action for landlords and investors everywhere to reassess their current management choices and seek out alternatives that promise better returns.
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
Hello, welcome back to another episode on Talking Property Management. I'm Samantha Eason and it's not an exciting episode today. I do apologize, but it is an important one. So I will say that I am here today tackling a question that really does baffle me and so many in our industry. Why do landlords stick with the bad property managers and agencies, especially when there are so many other better agencies out there? And if you're a landlord or a property manager, you'll want to stick around for this one. So, very quickly, we'll break it down.
Speaker 1:I've seen this happen time and time again. Landlords are frustrated with their property manager, they're unhappy with the service, but they are still hesitant to switch, and I don't understand why. So we're going to break down the why and how to fix it through this episode. But quickly, I want to give you a little bit of an update on a situation that's happened to me recently. That did prompt me to make this episode. So I reached out to a landlord on the weekend and I pointed out how lazy their property manager was. They weren't completing really relevant information when I spoke to them. They then lied and hung up the phone on me after the fact. So, yeah, it's probably not the best approach, but I did call the owner and just let them know, and even that client or that potential client, if you want to name them that way they were still hesitant to switch and there's obviously a big amount of trust in that particular relationship and I find that odd when that agency has changed property managers every 12 months.
Speaker 1:If you're a landlord listening to this, I want you to ask yourself are you truly happy with your property manager? Are they protecting your investment? Are they maximising your returns and are they keeping you fully informed? Maybe you've just gotten used to bad service, and that's exactly what this episode is for. Today, we'll explore the real reasons investors and landlords stay with the property manager that may not be performing and, more importantly, we'll discuss how to break the cycle. Firstly this is something that I've realized very early into my career A lot of landlords don't realise that their property manager is underperforming and it comes down based on. If the rent's coming in and they don't hear complaints, they'll assume everything is fine. But the thing is, what you don't know can actually hurt you and your investment. So issues like deferred maintenance, slow tenant responses and poor compliance management it can cost you thousands down the line. What you can do, before we get into the episode completely, is go back and review your last few months of communication with your property manager. Are they proactive, do they update you on routine inspections, market rent reviews or potential risks? And, if not, ask yourself are they managing your property or are they just collecting rent?
Speaker 1:The very first, I guess, test you can do, looking back over your property manager over the last two years if you've had to do any maintenance or upgrades, have you found yourself in a position where they've told you well ahead of time that something is due for being upgraded or replaced? And a good example of this is Carpet. So a few years ago, in another agency I worked with, we were responsible for leasing out the property and the leasing manager was doing the inspections. I worked in the office it wasn't under my portfolio and then, obviously during that time, the leasing manager approved a tenant. Then, before that tenant was due to commence their lease and after the existing tenant had left, I went through to the exit condition report, found that there was minor cleaning but the carpets definitely were in need of replacement. And it's frustrating because during that time six months ago, 12 months ago, with that property manager, that is when that owner should have been told. When this tenancy ends, you'll need to upgrade the carpet and we'll be able to obtain this amount much in money, you know. Bump it up. Maybe it was 450 per week, it could have achieved 500, just as a rough example. And in that particular situation the owner wasn't bothered. They had tenants already secured to move in and I guess they understood that their property should have had the carpet replaced. But that particular property manager, well in advance, at least at the routine inspections, should have pointed out the issues with the carpets. Sometimes it's not easy to be seen because the tenants may have rugs over the carpets, which we are seeing pretty common, but it is something that takes place.
Speaker 1:So let's hop straight into the fun part of the episode. Why do landlords stay? And, first and foremost, there's a massive fear of change. I get it. Switching agencies feels like a hassle. There's paperwork, contracts and the worry that maybe the tenants might be disrupted. Are you making the right decision? How do we know if this person can be trusted? But here's the reality. A good agency will handle their transition smoothly, making it seamless for both yourself and your tenants. Instead of assuming switching will be difficult, call a few agencies around and ask about their onboarding process and what they do. Call a few agencies around and ask about their onboarding process and what they do.
Speaker 1:Exclusively managed have a system in place to make the transition effortless for our onboarding clients and what we do is we'll reach out to the agency, provide the 30 days notice. In that 30 days notice we'll make contact with the tenants, get a list of anything and everything that may need attention. We'll then reach out to the tenants once that 30-day period has passed and we'll advise that we'd like to do a meeting with them at the property, have a look through the property and see if there's anything that we can point out that can help the client, and that may be minor maintenance repairs. Or we'd start putting together our exclusively managed strategy, which is where we look at things at 6, 12, 2 years and get everything ready for when we need to put that client ahead of the market. Maybe their expectations are low, and I get it. I really do.
Speaker 1:Some landlords believe that average or even bad service is just the norm in property management and our industry. They think late responses, constant tenant issues and minimal communication are just part of the deal and unfortunately, that's not true. There are agencies that do provide proactive, high quality service. You just have to look for them. Write down the three most frustrating experiences you've had with your current property manager. Now ask yourself if you ran your business your own business this way, would you be happy with that level of service? And that, I think, is really important, because no matter what your business is, that applies, and I think if you've got clients that are treating their investments properly and like a business, they'll be more inclined to open their eyes up to those errors. Yes, we're all human, but there is a lot of laziness within the industry, unfortunately.
Speaker 1:Another reason why people don't change their property managers. It's easy loyalty. And maybe you've been with your property manager for years. Maybe the agency sold you the house and they could never let you down. Maybe you even like them personally, but business is business. Maybe you even like them personally, but business is business, and if your investment isn't being managed properly, loyalty shouldn't hold you back. You wouldn't stay with a financial advisor who loses you money, so why are you staying with a property manager who's costing you money and time? If your property manager wasn't someone you knew personally, would you still keep them based on performance alone, and it's really important to be honest here, because it's hard getting rid of someone you like, even if they need that additional assistance.
Speaker 1:And another reason why people don't switch is price over value. Many landlords focus on management fees rather than value. They assume all agencies do the same job, so they go with the cheapest option or the largest. But here's the catch A cheap agency that does the bare minimum will cost you way more in lost rent, poor performance and tenant turnover. I spoke with someone last week who didn't choose exclusively managed purely because of fees, and we're not even that expensive. But this agency wasn't charging for the letting fee, which is the first general one week's rent plus GST. And I get it a hundred percent. But what I can say to that is send me through the entry condition report that they completed and I'll send you any random one of mine. I know firsthand, without even seeing that entry condition report, that if we had received that management 100%, we would have put in more information in the entry condition report and we would have taken the photos. And I don't do it to best myself against competitors. We do it because it's best practice when you have the entry condition report, the wording is to be used to back up the photos that are supplied with that entry condition report. When you have to complete the exit condition report, the photos are used to back up the wording they swap.
Speaker 1:The issue is there. When you do an exit condition report or an entry condition report incorrectly. Worst case scenario, you have to go to QCAT or you have to go through insurance, especially adjudicators, if you have like a photo of damage and pretend it's a white wall with a big black line in between it. If that adjudicator cannot see where that wall finishes and where that wall ends or where that damage is on the wall, you've lost that part of your claim because they need to be able to pinpoint exactly where that is in that entry condition report. Maybe it was there before the tenants moved in and they have to pinpoint exactly where it is on the exit condition report. And I have collected various keys documents over my career where we unfortunately find entry condition reports not completed, no photos, lack of photos, the list goes on. The reason why I'm saying that is because the agency that he did go with I've actually collected keys from them before and you do receive full copy of all the documentation. Most importantly, you also receive the entry condition report.
Speaker 1:If fees are such a big issue for owners, there's something that you can do to see if it's worth the loan management fees and the loan service. Calculate how much a vacant property costs you per week. Now compare that to how much a great property manager who keeps your tenants happy and reduces vacancies could save you. The cheapest option isn't always the most cost effective. Maybe you've misplaced trust in the agency.
Speaker 1:Bad agencies can be good at covering up their shortcomings. They keep landlords just informed enough to avoid complaints, but don't actually provide great service. If you only hear from your agency when rent is late or when they need approval for a repair, that is a red flag. Look at your last three emails from your property manager. Are they proactive or just reactive? Are they bringing solutions or just problems? And some landlords worry that switching agencies might reveal compliance issues or mistakes made by their current manager. But let's be honest ignoring these risks doesn't make them go. In a way, it just makes them worse. So ask your current property manager when they last did a compliance audit on your property, when the last routine inspection was completed. If they don't have a clear answer, that's a sign to start looking elsewhere. Even if you are unhappy, you may not know where to turn. Now it's common for you to assume that all agencies are the same, so you'll likely stick with the devil. You know, but there are really good property managers out there, especially ones that don't just manage properties, they maximize investments.
Speaker 1:Take 10 minutes after this episode today Research property managers in your area. Look for agencies with maybe investor-focused services, strong communication and clear value beyond just collecting rent. You've got to break the cycle. If you're a landlord listening to this, I want you to ask yourself one final question Is your property manager helping you grow your investment? Or am I or are you just tolerating them, because change feels hard? The best landlords don't just accept average service. They demand excellence. And yes, I said it earlier in the episode, we are all human. But if your property manager isn't delivering, it might be time to explore your options.
Speaker 1:That's it for today's episode. If this made you rethink your property management choices, share it with another investor that you know in your circle. You might need to hear it. And if you're happy to explore what a truly great property manager looks like, reach out. We'd love to help. Until next time. Invest smart and demand better property management. Demand better service. It is out there and take it from me. Your investment really does deserve it. Thank you very much for listening. I'm Samantha Eason, principal and licensee of exclusively managed. Have a lovely day.
