Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Serving Two Masters Delivers Poor Service to Rental Property Owners


Published on

Real estate agencies that split their attention between sales and property management are very common, but the service they deliver their rental property owners can be spasmodic. An agency that specializes in property management can deliver the level of service required to successfully look after a portfolio of rental properties.

Published in: Real Estate, Technology, Business
  • Be the first to comment

  • Be the first to like this

Serving Two Masters Delivers Poor Service to Rental Property Owners

  1. 1. Serving Two Masters Delivers Poor Service to Rental Property OwnersIn this one-size-fits-all society people are always looking for a level of service from businessthat demonstrates to them that they actually matter, and are not just simply a number in atransaction. There are many service delivery businesses that aim for the lowest commondenominator, delivering the least amount of service that the customer will tolerate, for thelowest price. Many fast food outlets fall into this category, as well as retailers and otherservice providers that appeal to a mass market. Real estate agencies can also fall into thistrap with many of them working in a dual capacity in both sales and property management.Traditionally, property sales have always been the most lucrative in terms of earnings fromcommissions by the agent who sells the property, when the market is buoyant. The propertymanagement Christchurch side of the agency is often considered the “fall-back” positionwhen the sales market is flat and is seen as a way to keep operating until the market turnsfor the better.For the owner of a rental property, this is not the ideal situation. The property for themrepresents a considerable investment, and they are relying on income from the property toeither fund the mortgage while building equity in the property, or simply to increase theirstandard of living. The least desirable thing is to have their property managed by an agencythat treats it as an afterthought.Most large agencies with a dual purpose have structured their team so it is seen to belooking after the interest of both sides. They may have part of the team that just doessales, and the rest looking after rental properties. They may even have dedicated managersoverseeing each area, so that a prospective rental property client might believe that theirproperty would be looked after exclusively by the rental team. In practice it is often the casethat the agencies cut costs by shuffling staff between each section to suit short termdemands, with sales usually the top priority. The attention to detail required to give qualityservice to the owner of a rental property gets lost in the daily operational muddle.Contrast this scenario with a property management agency that does only that – propertymanagement. With their corporate focus squarely on the clients, they have the businesssystems in place to screen out inappropriate tenants, conduct regular property inspections,arrange for repairs to be done that maintain the value of the property, report all activity andaccount for funds regularly to the property owner. As dedicated property managersChristchurch there is no conflict of interest or being pulled in different directions, and as aresult, the property owners and tenants both receive the best possible service andattention.For people who own rental properties, particularly if they live out of the area, or especiallyout of the country, a quality property management service is worth that little extra.Tenancies are hassle-free, the property is tenanted for the majority of the time and theowners can be confident that their valuable property is being treated like the importantasset it is.