Your investment property could be worth $500,000 or more. So why do so many landlords choose their property manager based primarily on the management fee? Let’s talk about the difference between someone who manages properties and someone who genuinely knows how to manage them well.
When you engage a property manager, you’re trusting them to protect your investment, understand tenancy legislation, select suitable tenants, manage maintenance, identify potential risks, communicate with your tenants and make decisions that can have significant financial consequences. That's a pretty big responsibility. Yet, landlords often choose a property manager based on who offers the lowest fee, or who tells them the highest rental estimate. But, saving $10 per week with a cheaper agent, or getting $10 per week higher rent, doesn't necessarily mean you end up with more money in your pocket: What happens if poor communication, an avoidable mistake or inadequate tenant screening costs you thousands?
The cheapest agent isn’t necessarily the worst, and the most expensive isn’t automatically the best. The real question is whether you’re getting the experience, attention and service your investment deserves.
Everyone starts somewhere, and newly qualified property managers deserve the opportunity to learn. But there’s a big difference between learning alongside an experienced mentor and being left to figure things out as you go. Property management involves much more than knowing the basics. It requires understanding legislation how legislation applies to real situations, recognising potential problems, keeping accurate records and knowing when to seek advice. Nobody knows everything, and even experienced property managers need to keep learning. What matters is having the knowledge to make informed decisions, the judgement to recognise risks and the support to get things right when something unfamiliar arises. When choosing a property manager, it's important to consider what experience they have and what support is available to them.
Good property management starts long before something goes wrong. It means taking tenant screening seriously, following the correct processes, keeping on top of maintenance and recognising potential issues before they escalate. Of course, no screening process can guarantee a perfect tenancy. Good tenants can experience unexpected financial hardship or changes in circumstances and suddenly a perfect tenant of 10 years isn't able to make their rent payments, or can't keep on top of the yard work. But taking reasonable steps to fully assess applications, verify information and follow the correct procedures can help reduce avoidable risks. Finding a tenant quickly is one thing. Making a considered decision about who you’re entrusting with your investment is another. I’d much rather spend my time looking after good tenancies than cleaning up preventable problems!
This is a question that every property manager gets asked every week. But the answer isn't as simple as a number. The important question is whether your property manager has the capacity to look after your property properly: Do they respond to your calls and emails? Do they follow up maintenance? Are they across upcoming lease renewals, rent reviews and changes in your tenancy? Do they notice when something needs attention? Do they know what’s happening with your tenancy? And if you ask a question about your property, can they find the answer?Your property manager doesn’t need to memorise everything. That’s what good records and systems are for. But they should have an understanding of what's happening across the properties they manage, and they should have a reliable way of accessing information about each property.
I deliberately keep my portfolio small because I value knowing what’s happening across my portfolio and I take enormous pride in knowing my properties, landlords and tenants.As a landlord, you deserve more than someone who collects your rent and calls you when something goes wrong. You deserve a property manager who understands your investment, stays on top of the details, communicates proactively and takes steps to minimise avoidable risks.
I believe landlords should look beyond the fee and consider what they’re actually getting: Experience. Knowledge. Good systems. Attention to detail. Communication. Accountability. And someone who genuinely cares about their job. Because a property manager’s job isn’t just to react when something goes wrong: it’s to manage the tenancy thoughtfully, identify risks where possible and help you make informed decisions about your property.
When you’re handing over the keys to an investment worth hundreds of thousands of dollars, don’t just ask what the management fee is. Ask what you’re getting for it.