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Bernie Mitchell of Focus Property Management says the vast majority of his clients have come to him because of dissatisfaction with their previous property managers.
“There are generally two things they complain about – poor communication or lack of activity in the management of the property,” he says. “The real question is whether your property manager is doing what they should be doing.”
A basic job for property managers is to regularly review rents to ensure the tenant is paying a market rent or close to it.
“We review rents every six months for our clients if tenants are not on leases,” explains Mitchell. “And if a tenant is on a lease, we review the rents about 90 days before the expiry of the lease. This gives us time to speak to the owner, speak to the tenant, to negotiate and give notice to a tenant of a rent rise.”
“A lot of landlords get frustrated that some property managers do not review the rent until the lease expires. Once the lease expires, landlords do not have as much leverage [during negotiations], and the tenant is still in the property by default.”
Good property managers will also advise their clients if the rental yield can be improved by better maintenance of a property.
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