As a property owner, your investment’s success heavily depends on the effectiveness of your property management company. A great management team can help your property thrive, while a poor one can cost you money, time, and peace of mind. If you’re experiencing ongoing issues, it might be time to re-evaluate your current management company. Here are five key warning signs that signal it’s time to make a change.
1. Lack of Communication
Strong communication is essential in any professional relationship, and property management is no exception. If your management company is slow to respond, fails to keep you updated on critical matters, or ignores your concerns, it’s a major red flag. You should always be informed about tenant issues, maintenance needs, and financial updates in a timely manner – if they’re slow to act for you, it’s probably worse with your tenant.
2. High Tenant Turnover
Frequent tenant turnover can indicate deeper issues, such as poor tenant relations or a lack of proactive property maintenance. A competent property management company should prioritise tenant satisfaction, ensuring that renters are happy, long-term occupants. Maintenance issues should be spotted early and resolved quickly, such as via regular property inspections – this is key to ensuring your tenant’s satisfaction. If you’re constantly dealing with vacancies, it might be time to look for a company that fosters a more stable rental environment.
3. Financial Irregularities
Your property’s finances should always be handled with transparency and accuracy. If you’re noticing unexplained charges, inconsistencies in reports, or a lack of detailed financial statements, it could indicate mismanagement – or worse, potential fraud. A trustworthy property manager should provide clear and consistent financial reporting to help you make informed decisions. Furthermore, a competent property manager will ensure you should oversight prior to any expenditure, so you know where your money is being spent.
4. Neglected Property Maintenance
Well-maintained properties retain value and attract long-term tenants. If your management company fails to handle maintenance requests promptly or lets the property deteriorate during a tenancy, it can result in unhappy tenants and costly repairs down the line. Delayed or ignored maintenance is a sign that your management company isn’t prioritising your investment nor undertaking regular inspections.
5. Legal and Compliance Issues
Property management companies must stay up to date with housing laws and local regulations. If you find yourself facing legal issues due to their negligence – such as outdated certification (GSR, EICR, EPC), fair housing violations, or missed inspections – it’s a serious issue. Legal troubles can put your investment at risk and cost you thousands in penalties and fees.
Bonus: Extortionate Fees
Especially in today’s landscape with rising costs such as higher interest rates and property owner’s insurance, you need a property manager whose fees for their service are fair and representative. It’s not uncommon for property management companies to charge upwards of 15% for their fully management offering; deeply cutting into your bottom line. Find yourself a property manager who genuinely cares about your investment and expertly manages your property for a reasonable fee.
If any of these signs sound familiar, it may be time to seek out a new property management company that aligns with your needs and protects your investment. A reliable, professional management team can make all the difference in your property’s long-term success.
Contact us today to discuss moving away from your current property manager and into our fully managed service, and let us handle the transition process for you!
