A wide range of property management tasks can be outsourced, but that doesn’t necessarily mean they should be, says one insurance specialist.
The theory is that by outsourcing tasks such as maintenance and repairs, trust accounting, database reviews and inspections, and smoke alarm checks, property managers can handle more properties and focus on communicating with their landlords.
In addition, you can effectively outsource some risk and liability by making another company responsible for aspects of property management.
EBM’s RentCover general manager Sharon Fox-Slater said outsourcing is a strategic business decision agencies need to make to best suit their priorities and circumstances.
“However, if an agency does choose to go down the outsourcing route, we would like to stress the importance of ensuring all outsourced partners are appropriately qualified and insured,” she said.
“One of the advantages is that you can effectively outsource some risk and liability by making another company responsible for aspects of property management. However, a poor choice of outsourcing partner could see a fall in the overall quality of service to your clients.
“In assessing a potential outsourcing partner, it’s important to understand how their systems work and how they source, manage and train their staff – as well as checking on things like licences and insurance cover,” she added.
Ms Fox-Slater said even if agencies choose to outsource, there are some tasks that should always remain “in-house”.
“I’d argue that one of those is the duty to make property investors aware of the protection quality landlord insurance can offer in the event a tenancy turns sour,” she said.