Join Us At
The Millionaire Mindset
Master Class

An Exclusive 2 Day Course Where You Will Learn The Exact MindSet Strategies That Enabled Me To Build A Multi-Million Dollar Property Investment Portfolio And Three Highly Successful Real Estate Businesses

Click Here To Learn All About This Life Changing Event

Common Mistakes Property Investors Make

Mistake Two- Mistaking cheap fees for quality service

The familiar saying ‘you get what you pay for’ is true, and in property management there is a vast difference amongst the service and quality that is given. This is varied and different as the levels of fees that are charged.

However we need to understand that should we place our property for management with a cheap agent, we also need to understand that we must expect low and dissatisfactory service levels.

How is this so? Here is a simple step by step analysis of how cheap fees lead to poor service levels;

1. It starts with cheap fees- when seeking a property management service the property investor phones around a number of agencies, and locates an agent that has cheaper fees. Initially attracted by lower costs, the property investor signs a management agreement with this agent.

2. The property manager is overloaded with properties- because the agency has a much lower revenue base because of their cheaper fees, the property manager assigned the property has far more properties to manage than what is responsible or feasible.

3. Burnout and resignation- the overload of managements causes the property manager to not cope causing ‘burnout’, lowering service levels and most likely resulting in a resignation

4. Inexperienced property manager employed- The agency must them employ a new property manager. It is likely that a well experienced property manager is hard to find therefore resulting in the employment of a low or inexperienced property manager. Even if a good property manager was located, they may not want to take on the role because they know they will be too overloaded with work.

5. Cycle of staff turnover- the overload of properties is too much for the new property manager to deal with. Low revenue levels also result in little to no training and the new property manager is likely ‘thrown into the position’ and a resignation quickly ensues. The cycle of high staff turnover is the result.

6. Poor service levels- due to the high turnover staff are untrained, inexperienced and overloaded. This results in poor service levels, and dissatisfied clients.

7. The property investor changed service- despite having received cheaper fees, the property investor now cancels management with the agency and seeks a new service. They now realise that service levels are more important than cheaper fees, and seek a new property management service that is focussed on quality service more so than cheaper fees.

Therefore as an astute property investor it is recommended that focus not be placed on cheap fees, but more on service levels given. In a lot of cases, agents that have higher fees than others does indicate a better and more consistent level of service as the agency has the resources to provide this.

Looking at buying an investment property, or looking for a new property manager?

 

Looking at buying an Investment Property, or looking for a new property manager?

Give AdProp a call today.