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Changing Property Managers

Property remains one of the most preferred asset types for Australian investors, but it can be difficult to create value in your investment property without an effective property manager on your side.

Property managers play an integral role in the success of your investment property. As their core responsibilities include marketing, securing tenants, and overseeing the lease of your property, the quality of your property manager can make or break your investment.

For many investors, the worry surrounding changing property managers can often result in putting up with poor property management services for far too long. However, changing property manager is much simpler than you may think.

In this article, we explore how you can tell when it’s time to make the switch to a new property manager and the process involved.

When is time to consider a new property manager?

There are of course several reasons why investors may consider changing property managers, ranging from poor management procedures to simply a mismatch in needs and offerings. Here are some common signs that it’s time to begin searching for a new property manager:

  1. Poor communication – Difficulty communicating with your property manager is a tell-tale sign that you are receiving poor service. A property manager who you consistently need to chase up for information can be more of a hassle than a help, and can even leave you uninformed about important issues. If you find it hard to get a hold of your property manager, chances are your tenants feel the same, leading to dissatisfaction or high tenant turnover.
  2. Low trust – When you engage a property manager to oversee your investment property, you should have confidence that they have your best interests in mind. When this trust in your property manager is eroded or compromised, and you feel there has been insufficient effort to rebuild the relationship, it may signal time to search for a better match.
  3. Deterioration of your property – If you find your investment property is beginning to fall into disrepair, this may indicate that your property manager is not taking an active interest in dealing with maintenance issues as they arise. As the owner of a rental property, it is your responsibility to provide a safe and liveable environment for tenants. If your property manager fails to recognise and solve these issues, it may result in dissatisfied tenants and a declining property value.

How can I change to a new property manager?

Once you have decided to explore other property management services and believe you have found the right match, making the switch is easy.

First, you need to inform your existing property manager that you wish to terminate their services. If you choose to appoint Blackburne, we will send you a letter to give to your current agents, giving them notice. All that you need to do is forward it on.

The next step is to sign on with your new property manager, and fill out the required documentation that allows them to act on your behalf. Once you have informed your current property manager and signed on with your new property manager, your new property manager will arrange the collection of documents from your previous agent, notify the tenants of the change and ensure the smooth transition of property managers for you.

Your new property manager will receive the keys and documentation for your property, and conduct an inspection so any existing issues with the property can be identified.

Can I change property manager mid-lease?

A common misconception is that the only time a management agreement can be terminated is at lease renewal.

In fact, you can give notice to your current property manager at any time during your tenant’s lease as your tenant’s lease and your management agreement are separate. Leaving a bad property manager will benefit both yourself and your tenants who are also likely receiving poor service.

Firstly check if you are currently in a contract with your existing property manager.  If you are in contract and do wish to terminate early, you may incur charges called liquidated damages. These can be 50% of the management fees.  To avoid these charges, you may prefer to wait until your management authority has expired which is commonly 30-60 days. In all cases, it is usual to give at least 28 days’ notice.

Make the switch to Perth’s property management specialists

At Blackburne Property Management Perth, we understand the importance of a quality property manager who focuses on your property’s return on investment and is receptive to your needs.

That’s why we provide all of our clients with a premium service guarantee, so you can be sure you will receive a high quality customer service experience at all times.

To learn more about changing to Blackburne Property Management Perth for a superior property management service, contact our friendly team today.

Switch to Blackburne Property Management

Whether you have a residential or commercial property, we work to secure the highest return on your property asset. How? Our strategy paired with our experienced team achieve well above market rental returns for our landlords. Register for your complimentary appraisal and switch today.

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