When landlords select a property manager, sometimes they have the wrong impression that service standards are the same in every agency. When they get offered really cheap rates, it seems like a bargain! In property management, the rule that ‘you get what you pay for’ is very true and in the next few weeks we will explore the reasons why hiring a cheap agent can be recipe for disaster!
1. Cheap Agents Attract New Business with Cheap fees
When an agent has no evidence or points of difference showing how well they can service a client, they revert to offering cheap fees in an attempt to get the business. Unfortunately the unaware client may not understand the different levels of service agents offer and are satisfied they have received a bargain, unaware of the problems to come.
2. Cheap Agents MeanProperty Managers Now Have to Manage More
As all agencies have similar running expenses and salaries to pay the cheap agent now has a real problem. Their staff must now manage more to make the same profit levels, creating a greater burden for that staff member. Too many properties become very difficult to properly service and because of low fee levels, this cannot be changed.
3. Cheap Agents Means Greater Staff Turnover
As the property manager is now overburdened with too many properties, they become stressed and burnout. This pressures them to hand in their resignation because of an environment that is unworkable. Again, the agents cheap fee policy has forced the department into this situation.
4. Cheap Agents Means Poor Service
As the average property manager cannot possibly manage so many properties; a greater cycle of staff turnover is now the result. The landlord however, has long forgotten about the cheap fees they received is now frequently dissatisfied with the poor service they are receiving. They then decide that what they require is in fact an agent who focuses on their quality service to attract new landlords and are now happy to pay a bit extra knowing their property is now being professionally managed.