When Big Brands Fail Landlords: Real Risks Of Franchise Property Management

Big logos can look safe, but your investment relies on quiet details that either get done right or cost you thousands. We pull back the curtain on franchise property management and show how task-based systems, rotating files and vague “internal reviews” can turn simple admin errors into lost rent, rejected insurance claims and broken tenant relationships. The story starts with a single breach notice issued incorrectly, then unravels into weeks of arrears and money the owner never sees.

Across the conversation, we map the weak points most landlords never get told about: fragmented teams where one person handles leasing, another handles routines, someone else emails owners, and a different voice talks to tenants. That fragmentation hides accountability. We share recent takeovers where exit reports said “clean” while kitchens and carpets told a different story, and where missing items slipped through because no one cross-checked entry and exit reports properly. When insurers later ask for precise dates, amounts and notices, the paperwork collapses under scrutiny.

We contrast that with a boutique, relationship-first model: one manager who knows your tenant by name, can recite the rent without opening the system, and keeps inspection, arrears and maintenance in the same tight loop. When legislation shifts, processes are rebuilt, not glossed over. When a mistake happens, it’s owned and fixed. You hear the practical questions to sanity-check your current provider: who issued the last breach, who did the last routine, what maintenance is outstanding. If those answers require four names, you know the risk you’re carrying.

If you’re ready to trade volume for stewardship and safeguard your returns with proper notices, clean reports and clear communication, press play and see what accountable property management feels like. Subscribe for more honest takes, share this with a landlord who needs it, and leave a review to help others find the show.

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/

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Chapters

• 0:00 Setting The Stage: Tough Truths
• 2:22 The Franchise Promise vs Reality
• 3:38 Task-Based Management And Its Pitfalls
• 4:25 The Arrears Notice That Cost Thousands
• 6:24 How Systems Hide Mistakes
• 7:23 Insurance Claims Rejected
• 8:24 Takeovers Reveal Missed Basics
• 9:18 Why Boutique Ownership Matters
• 10:22 Personal Accountability And Care
• 12:04 Closing And Invitation To Connect

Transcript

SPEAKER_00: 1:00

Hello, Smatha Eason here, principal of exclusively managed. We're based in North Lakes and Ashgrove. And today I'm talking about something that will yeah definitely ruffle some feathers. But I like doing that. It's what we need. We need a bit of ruffling, you know. So back on to the franchise agencies. The big name brands that promise consistency systems and the best care because of their name, their brand, their colors, their network. And here's the truth: I've seen this firsthand. That structure, that franchise often hides the mistakes that cost you as a landlord thousands. When a franchise agency sells their brand, they sell the idea that bigger means better. And we know that, you know, like we rely on them either, you know, being around for 20, 30 years, having various offices, maybe a really good sales team. That a national logo automatically equals professionalism and great results. And that systems guarantee accountability. But behind the logo, it's just people and not always the same people handling your investment from start to finish. Most companies operate in with what we like to call task-based management. One person handles leasing, one person handles routines, another one is solely communicating with owners, and then you've got someone else in the office who solely communicates with tenants. And it sounds efficient on paper. I'll be realistic. Like when this first came out, yeah, it sounded good on paper, but in reality, no one owns the relationship. No one truly knows your property. The left hand doesn't talk to the right. And well, I've seen this happen, but that's when the small mistakes snowball and you're left with large ones. And I'll give you real examples. So I'm aware of a situation where one particular franchise agency, I won't name them, had a property where the tenant fell behind in rent. And it happens, you know. Like we ask new clients all the time, as investors, what's your process with rent arrears? Because it's such a big topic for us, you know. We need to feel comfortable, we need to be safe. So, what happened in this situation is the property manager who was looking after the arrears in this task-based management process issued notice ceremony breach and it wasn't done properly. When the tenant didn't pay, and the next person went to issue a notice to leave, they found that the notice ceremony breach wasn't issued properly, so they had to reissue the breach and start the process from scratch. And by the time that was found, the tenant was already 25 days behind in rent. And that's not a small mistake. That's rent that the owner never recovered. And it all came down to one poorly handled notice that no one in that office wanted to take responsibility for. They also didn't tell the owner. So what happened next? Yeah, they swept it under the rug. They sort of apologized. And I say sort of because they didn't really, and just pretended it didn't happen. And you can't undo that kind of loss. It's about two and a half grand to three grand in miss rent. Gone. All because that process broke down. Because it's important to have those processes within your team, within your office, within your structure, perfected for a reason. And that's what a lot of landlords don't know. Franchise, big companies, those agencies often hide their mistakes behind their systems. They'll tell you it's being reviewed internally. They may even change staff, and suddenly the new property manager doesn't know what happened before. They'll move your management file to a different office or team and the original issue disappears into the system. And I've been in offices where they do change property managers, maybe maternity leave or just an employee leaving. There's always a handover and you go through every single property. Unless the person just ops and leaves, there's a handover. But it it's like, hey, this property owner is, you know, very tricky or very difficult or doesn't like doing maintenance or this person is this, and there is a handover. So when you need your property manager to make an insurance claim for you, and you've got these issues that have snowballed from, you know, things being missed, what do you do when your insurer rejects it? What if it's because your property manager mucked up? They didn't issue the breach correctly, or they didn't have the correct dates on it, or the correct figures, or you know, there was just too many holes. What what do you do when you call your insurance provider and they say, sorry, the paperwork your property manager issued across or you issued across doesn't support your claim. And you're the one left holding the back. That's what happens when there's no accountability, when the people managing your investment aren't the ones standing behind the results. And it's your property, it's your loss, you know, like you just have to wipe your hand with it. We recently have been in the process of taking over management from a couple of franchises, actually, over the last month. And when we walked through with the property owner, the property wasn't cleaned. But I'm looking at an exit report that's telling me everything's clean. In another situation, there were things missing from the property that the owner wasn't aware were missing, and it's just been very difficult. And the property manager wasn't looking. Like they didn't look at the entry condition report, they didn't look at the exit. You're you don't want to be in a situation where your property becomes a number on a spreadsheet. You know, you need to ensure that the property manager you're speaking with knows your property inside and out. The person who's communicating with owners doesn't know the tenant has already raised a maintenance issue. The tenant who's communicating with the, you know, the property manager that's communicating with the tenant doesn't know that the owner has been waiting for updates. And the person in that agency or that office who's doing routines doesn't realize the rent is behind. That's how small cracks turn into huge losses. Late rent, misnotices, ignore damage, massive, massive risk on your investment. And by the time anyone realizes it's too late, you've lost rent, your insurance won't help, and your tenant relationship is it's broken beyond repair. That's not rare, like happens all the time. I 100% guarantee you if your investment is managed by a large agency or franchise, there have been mistakes made that have been hidden. 100%. And boutique agencies like ours at exclusively managed, we don't hide behind systems. Like we fine-tune our process and when the legislation changes, we go back through our process when you know a situation has arised that we hear from the public. We go back through our process. You know, when I say we manage your property personally, I mean it. You know, you don't we don't have six people touching a file. You have one property manager who knows your tenants by name, knows your property, knows the history, and knows the right legal processes inside and out. I get asked, you know, from some mutual clients, you know, what's the rent on this property? I don't even have to look in our system. I know it off by heart. I know the tenant's name, I know where their property is, I know what maintenance is outstanding. And yeah, if we make a mistake, we own it, we fix it. We don't cover it up. I'm human, I make mistakes. It's not difficult to go, yeah, mate, I'm sorry, mucked up. This is what I'm doing to fix it. And that's the difference between a boutique agency and a franchise. We're not volume-based, we're relationship-based. And yes, I say that we protect our investments as if it was our own, but we're actually vested in our client's success and our tenants' happiness and their properties. You know, like countless owners, I don't even have to question if they'll say yes to something. I know they will. So, like that's the difference, you know, the accountability on our side. Next time you see a franchise logo and hear the promise of nationwide expertise or I don't know, 30, 40, 50 years combined experience, it's not the logo managing your property, it's the person behind it. And if that person doesn't know your property, your tenants, or your story, then no amount of branding will save your investment when things go wrong. And that's the reality. It's why so many landlords switch to boutique agencies. Because, you know, they've realized that care, that detail, and accountability aren't corporate slogans, they're daily habits. If you want to see what it's like to be exclusively managed, get in touch. My contact number can be found through the details or on our website, and I'll show you exactly how real property management should feel. Should be honest, personal, and done right from the beginning. I look forward to our next episode where we go through the myths of the franchise agency, the situations that we have encountered and found, and what we can do to better strengthen our clients' investments. Until then, thanks for listening.