The answer we receive to this question is usually ‘YES’ but recently we have come across some situations that highlight that in Residential Property Management the answer should really be ‘NO’.
Recently we took over management from another agent, the owners comments were general but a few things he said got our attention such as he ‘never has issues’, ‘never hears from the agent’ and things seem to be ‘ticking along’. Wow it sounds like the perfect investment, no news from the agent, the tenants are ticking along and the rent gets paid on time.
For the past 10 or so years this has been the case for this owner, only a handful of new tenants throughout the years and very little maintenance made him feel at ease and that everything was under control. The owner decided to change management to us due to the previous managing agent changing property managers so many times and the first thing I suggested was that we inspect the property together, mainly as he hadn’t seen in for 10 years and things change over time and secondly so that we are both on the same page with the property.
Inspection day came, and we excitedly met the tenants only to be shocked with what was behind the front door.
Beyond repair, were the owner’s words! The carpet that was once cream was black, the bathroom was mould ridden and water damaged, light fittings were broken and not working at all, door handles were falling off (or not there at all), the list goes on and I’m sure you get the point.
On top of the disappointment with the state of the property, the Tenants names that were on the lease were no longer living in the property at all, the property had been turned basically into a short term share house.
This is one of the worst cases of ‘No news is good news’ we have come across and I wonder how much longer the property, its owner and tenants could be left alone in the dark without communication and management.
The property requires a full renovation of at least $50,000 and will be vacant during that time so you could say the cost of ‘no news’ could be around the $60,000 mark.
If you want to make sure this doesn’t happen to you, it might be a good idea to attend one of the routine inspections at least every second year and call your property manager for an update if things have gone quiet. After all you don’t ever want to be in this situation.
We’re great at getting things sorted and advising when things should be repaired or when items will likely need to be replaced, so please feel free to call us or email us if you have a property that needs to be taken care of now and into the future.