As an investor, what’s important to you? Is it cheap fees, a great service, or a combination of both?
It’s an important consideration because the way your property is managed can have a direct impact on your overall returns, tenant satisfaction, and long-term property value.
Let’s talk about this!
Cheap Fees:
It’s natural to want to minimize costs, and to many people, managing their investment themselves or choosing an agent with low management fees may seem appealing. However, while cheap fees may save you money upfront, they often come at a cost in other areas—like the quality of service, attention to detail, or the level of care your property receives.
What Could You Sacrifice?
- Tenant Quality Control: Tenant screening is a time-intensive process. A cheap service might rush through checks, which increases the risk of placing unreliable tenants in your property, possibly resulting in higher turnover or property damage.
- Poor Communication: Agencies operating with lower fees might not have the manpower to offer personalised service. You could find yourself dealing with delayed responses or generic, less-than-helpful updates about your property.
- Revolving Door of Property Managers: In most cases, agents who offer cheap fees will overload their Property Managers with too many properties which can result in frequent staff turnover, lack of personalized attention, and inconsistent management of your property. This often leads to important tasks being overlooked, delays in communication, and a decline in the overall quality of service.
- Less Proactive Maintenance: Agencies charging rock-bottom fees may not have the resources to offer thorough routine inspections or prompt maintenance responses. This could lead to larger, more costly issues down the line.
Great Service:
On the other hand, if you’re seeking great service, you’re likely looking for a property management team that understands the value of your investment and works hard to protect it. A great service is about more than just collecting rent—it’s about offering a comprehensive solution that looks after both the property and the tenants.
What Does Great Service Include?
- Comprehensive Tenant Screening: High-quality agencies invest time and resources into finding the right tenants. They’ll check rental history, employment stability, and references, ensuring your property is looked after.
- Proactive Maintenance and Upkeep: A quality property manager will identify issues early and address them quickly. This helps prevent bigger problems and keeps your property in top condition.
- Communication and Transparency: You’ll be kept in the loop with regular updates, transparent financial reporting, and quick responses to your queries. This kind of service gives you peace of mind, knowing your investment is in good hands.
A Combination of Both:
Finding the right balance between affordable fees and great service is the sweet spot many investors aim for. You want to know that you’re getting value for your money and where the fees you pay are justified by the quality of service and the positive results your property manager delivers.
What to Look for in a Balanced Approach:
- Clear Value for Money: Evaluate the management fees not just by how low they are but by what’s included in the service. A slightly higher fee might be worth it if it leads to fewer headaches and higher long-term returns.
- Efficient but Cost-Effective: A good property management team won’t just keep costs down but will look for ways to maximize your rental returns through strategic advice on setting the right rental price, property upgrades, or offering insights into market trends.
- Personalized Service Without Breaking the Bank: Great service doesn’t always mean paying top dollar. Look for a property manager who offers tailored services—understanding your goals as an investor while maintaining reasonable fees.
Conclusion:
In the end, what’s important to you depends on your goals as an investor. If you’re simply looking to keep costs as low as possible, cheap fees might work for you, but it’s crucial to weigh those against the potential downsides. If you value long-term success, peace of mind, and the preservation of your property’s value, investing in a great service (or a balance of both) could pay off in the long run.
The key is finding a property management agency that understands your unique needs and delivers a service that aligns with your investment strategy.
