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BLOG: How to spot a terrible property manager

18 OCT 2018 • By Phillip Tarrant • 2 min read • Investor Strategy

We’re always looking to refine our portfolio and make sure it has the best cash flow position as much as possible, and a threat to that is a terrible property manager. Editor Phil Tarrant shares what you need to watch out for.

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We’re at the most dangerous part of our investing journey: right now we’re doing nothing, and this boredom can lead to bad choices.

Really, maintaining our portfolio came down to good management of our cash flow. It might go up, it might cost us more to hold a portfolio from a mortgage perspective, but we have control over how the properties are presented, what sort of tenants are in there, when leases are coming to an end, how much rent we’re charging.

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These are all things within our control. And often, it’s things I could probably be better at being on top of. 

For example, there’s been times where I’ve asked a property manager, “How come rent hasn’t increased?” and the property manager says, “There’s no one’s been in there for three weeks.” And I'll go, “Well, why didn’t you tell me?” and they'll go, “We did.”

 
 

Okay, well, why don't you call me again? That’s missing cash flow, right there.

One of the challenges we have is that not all managers are created equal. We’ve had a couple that are a real pain. I won’t mention names, but there always seems to be a problem at a couple of the properties that we have: maintenance needed, trees falling down, dog poo on the front lawn, people can’t pick it up, gardens need trimming, all of these sort of stuff, and it’s always an issue.

With some of these, it feels as though I’ve never had a full week’s rent because someone has got their nose in a trough trying to take money out of it, whether it’s an electrician, or a tradesmen, or something or another – it’s taking cash flow away. It makes me ask myself, are they just bad properties and bad managers or is it bad property management?

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RELATED TERMS

Property
Property refers to either a tangible or intangible item that an individual or business has legal rights or ownership of, such as houses, cars, stocks or bond certificates.
Tenant
A tenant, also known as a renter or occupant, is a person or entity that leases space for residential or commercial use.
Phillip Tarrant

Phillip Tarrant

AUTHOR

Phillip Tarrant is executive editor – Real Estate at Momentum Media. He is also an investor with a large property portfolio.

He leads the content strategy and corporate growth for a range of market and business intelligence platforms at Momentum Media, including Smart Property Investment – the authoritative voice for Australia’s property investment community.

As head of the Smart Property Investment Podcast Network, he also steers the largest network of property podcasts in Australia, which collectively generates nearly 2 million downloads every year.

There are over 2.6 million investment properties in Australia, with over 2.1 million Australians (or around 8 per cent of all Australians) owning one or more investment properties. A vibrant and critical sector for creating wealth for Australians, the property investment sector is expected to remain a pillar to the national economy.

For nearing a decade, under Phillip’s stewardship Smart Property Investment has been informing and educating property investors on the tactics and strategies to create wealth through property.

Trusted by over 100,000 Australians each month as the turn-to independent resource for property market insights and information, the brand supports the mantra of "for investors", by investors’, drawing on the unique position that Phillip and Smart Property Investment share, warts and all, its own journey through property.

The Smart Property Investment Show, part of the Smart Property Investment Podcast Network, is one of Australia’s most popular podcasts, forming the keystone of an integrated digital platform delivering daily property updates, live broadcasting, insights, opinion and data to property investors across the nation.

Underpinned by a content team universally recognised for their knowledge of the sector and approach for clear and concise communication, Smart Property Investment has become a central part of Australia’s property community.

About Momentum Media

Momentum Media is a leading media and market intelligence company, and the business behind Smart Property Investment, REB and RPM.

Guided by a strong sense of purpose to support our communities, Momentum Media has forged its place as one of Australia’s most influential media and professional development businesses.

We have been equipping Australia’s corporate, investor and SME sectors with market and business intelligence for over a decade.

Across an integrated business supported by digital, events, broadcast, research, print and social platforms, we are guided by the purpose: Be Better informed.

This passion for informing, educating and inspiring drives us to build more engaged communities, delivering greater leadership to the markets we connect to and forging closer relationships with our audiences.

Being at the forefront of media innovation, backed by a pioneering spirit, has been central to Momentum Media’s growth.

We’re an evolving, forward-thinking business based on a purpose that supports corporate Australia and the markets critical to our nation’s economic prosperity and security. We’re also focused on delivering exceptional value to our commercial partners.

We adapt on a daily basis to rapidly changing market places; we’re a fluid media business, unanchored to any particular technology, channel or tone of communication.

With a reach spanning nearly 2 million professionals, high-net-worth individuals and SME business owners, we’re connected to the rapidly changing preferences and attitudes of our communities – and we’re making a positive contribution for our communities to thrive.

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