For investors, finding the right property manager isn’t a nice-to-have, it’s essential to protecting your asset and maximising returns.
On a recent episode of The Smart Property Investment Show, host Liam Garman spoke with long-time investor Alex Whitlock about the hidden risks of poor property management.
Whitlock, who has bought and sold dozens of properties across Australia, said many landlords blindly accept whoever their buyer’s agent recommends, without doing due diligence.
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“For most people, the property manager is incidental,” Whitlock said. “You end up with whoever the buyer’s agent throws in, and that’s a big risk to your portfolio.”
He said a good property manager is the “custodian” of your investment, someone who keeps the property in great shape, manages tenants, and handles problems on your behalf.
However, he warned that bad property management can have serious financial consequences, especially when it comes time to sell.
“I’ve seen investors lose thousands when they go to sell and discover maintenance problems that were never addressed,” he said.
“Value can disappear overnight if no one’s watching.”
Whitlock said the small percentage fee charged by property managers often saves money in the long run, particularly by reducing vacancy and managing costs effectively.
“If your property is empty for a week or two, that far outweighs any savings from self-managing or using a cheaper agent,” he said.
He also encouraged landlords to embrace technology and demand more visibility from their PMs.
“Too often, I’m left chasing PDFs and emails for rental statements when I want to refinance,” he said.
“I invested in PM tech because I wanted transparency and control.”
He now uses a platform called Managed to view his entire portfolio from one dashboard, including properties in Sydney, Melbourne, and the Northern Beaches.
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“I can download reports, track income and expenses, and send it straight to my broker or accountant,” he said.
The investor has stark advice to listeners if their property manager is underperforming.
“Switch,” Whitlock said.
“It’s incredibly easy to do, and the right property manager will be one of your most valuable investment partners.”
To listen to the episode, click here.