Property managers should not have to be on call 24/7

Not all business is good business – and not all property managers are the same.

For years now we have seen the decrease in management fees for property managers. When i first started in the industry, the market hadn’t been de-regulated and the fee structure was set, there was no negotiation. Deregulation gave people the opportunity to increase fees, provide additional services and be the professionals that they are – but somehow, everything has gone the other way.

The average management fee in Victoria has decreased, and clients want more access to their property managers. Much more than ever before. We all have smartphones, but really that’s the wrong name for them. They should be called “being on call 24/7” phones. I personally love the calls on a Monday morning that begin with, “I rang you yesterday, but you didn’t answer or you haven’t returned my call.” No, I didn’t answer, I was busy with my children. They too are entitled to have a piece of me.

While I am all for building relationships with clients, because it’s both rewarding and beneficial, sometimes the expectation is a little out of whack!

I remember growing up my parents taught me that you never made a telephone call after 8.30pm or 9, yet now our mobiles continue to ring until late into the night, on weekends and even on Christmas Day. So when is it too late to make a call?  When does it become rude or an invasion of your personal time?

With all that being said, how has the management fee we earn per property decreased when we do so much more work and are more accessible than ever before?

So how can things change?

Property managers and directors need to stand up and say enough is enough. If you want more of me than the average property manager, then you have to pay a little more. This means I will no longer be prepared to agree to low management fees. I will no longer be agreeable to providing my services time and time again and not be paid accordingly.  We are professionals, so if we don’t make a stand, we can never expect to be paid what we deserve.

Now with all that being said, there will always be someone cheaper. And that’s when you have to remember that not all business is good business. Sooner or later clients realise cheap is not always best.

I recently lost some business to a new client who elected to have their property managed by someone else. The other manager offered lower fees than we did. The funny part is, when it came to transferring the management, the new agent asked one of my team, “So what information do I need to obtain from you to take over this property?”. A perfect example of what cheap buys you. Unfortunately for that client, it will probably result in a continual change in property managers (which is an owner’s pet hate) or the rent roll being sold as that agent can no longer afford to be in business. I suppose only time will tell.

Leah Calnan is the director of Metro Property Management in Victoria and is the chairwoman of the REIV Property Management Chapter.