Service level key to management
DISCOUNTING property management fees is sometimes used as a point of difference for real estate agencies, however there are many other more important things property owners should be considering when choosing an agency to manage their property.
Agencies often reduce their fees to gain business, however this can result in lower levels of service for both the property owner and the tenant.
When comparing agencies services the things property owners should be investigating include:
- How many inspections are undertaken per year (this is limited by law)?
- How thorough are the entry and exit reports?
- Are many detailed photos taken of the property?
- Are water meter readings taken?
- How is maintenance managed?
- How are rental arrears managed?
- How and when are the rental funds disbursed?
- How are bills paid?
These important questions highlight the level of service property owners will get for their fees.
Tony Franke from Ray White Toowoomba Range and Highfields said a smaller revenue base with an increased number of properties to manage meant agencies risked high staff turnover and stressed staff resulting from work overload.
"An agency that is confident with the service they provide can charge the appropriate property management fees and have the time and resources to successfully manage their portfolio, and provide a high level of service for owners and tenants," Mr Franke said.