Firing Property Managers

I hate doing it and have given PM's many chances to improve their services prior to termination but sometimes they just don't leave me any choice... !!

Latest saga is a NSW unit that has had the same agency for 3 yrs now, but with three changes of PM it has just gone from mediocre to worse. As with all management agreements on my IP's I ask for authorisation before a dollar is spent (unless an emergency repair as per RTA guidelines) so that I can keep a reign on the spending and not fall victim to overpriced repairs (been there done that and have learnt from my past experiences ). However, the last statement revealed a $270 unauthorised repair for a hot water valve system, and this was on top of other repairs which I had no knowledge about. Very frustrating indeed, so I politely terminated their services (amid much apology and backtracking and promises that it wouldn't happen again...) and have decided to self-manage for a while.


So for those of you who are worried about the process or unsure on how to fire an incompetent PM (or if you simply to self-manage) my suggestion is to keep a good paper trail, ensure you are aware of the MA you signed and don't put up with sub-standard service- PM's should be more than rent collectors after all.

*rant mode off*

 

Hi Jacque, don't feel alone.
In the last 18 months we've sacked 2 and had words with two others. From experience, if you move to a new PM, who know you've just sacked the last one, they do seem to pay more attention.
Also changing PMs on buying an IP that was already rented seems to help get them on your side.
Dave

 

Lately I have realised exactly how organised a good PM should be, as I have been micromanaging my PM, to ensure she does not stuff up, cos if she does, I will compain to the Principal.
I am now setting my rules, one warning to PM, 2nd time Principal is informed, third time, your out. If an agency cannot hire good PMs to look after my IPs, I will let them know and move on.

 

I used to mange all my IP's but I gradually stopped. The last one actually goes to a PM this Monday.

I mananged the properties well and I had more than one tenant say over the years how much better things were responded to etc than a standard PM. BUT I have now lost interest in that part of the process and therefore unless my enthusiasm returns I'll just try and ensure my PM's are at least doing a reasonable job for now. Maybe I'll get involved again one day but to be honest there's just so many other things I would like to do with my time now.

The One, Two, Three and you're our policy of managing PM's sounds more than reasonable to me.

 

Jacque

Managing an IP myself would be my last resort.
Repair expenses are tax deductible and I have capped the unauthorised repair value in each contract to $150, so no surprises there...

Additionally, I hate dealing with tenants and getting phone calls after hours.
Not to mention that if any of them forget to pay rent I would have to write letters and to chase them up.

Cheers

 

Repairs are still tax deductible, whether or not you manage through a PM or do it yourself. Just keep your receipts and good books with each property.

Understand where you're coming from, however, with not wanting to be stressed with issues such as arrears! Keeping a professional distance is the reason why so many of us use third parties when it comes to real estate transactions in general. Funny things can happen when friendships and relationships that are "too close" in general cloud our better judgement.

Best of luck with the next PM then