One head of property management has said outsourcing is “cutting corners” and he doubts many landlords would be happy with parts of their service being managed elsewhere.
Besser & Co head of property management Marcel Dybner said he has found that to provide a good service to landlords they really can’t be cutting costs on the fees they charge.
“Now, I think what has happened in the past few years is all the agencies are looking to build rent rolls and they have all seen the value in it,” he told Residential Property Manager.
“So what they are doing is they are all undercutting each other - you are seeing the prices significantly drop, you are seeing people offering six months' free management and all of these kinds of crazy deals.
“Then they win the business and they quickly realise they have to manage these properties and provide a service, which they can’t do to a high standard.
“In my experience and in my market, the agents who are at the top of the game and who don’t negotiate fees and do charge the top price, they don’t outsource,” he added.
Mr Dybner said his company doesn’t outsource at all, instead it focuses more on training staff around what to do and how to manage their time better.
“I think these agencies who have gone in at these cheap rates now have to look at ways to service clients by cutting corners and outsourcing a lot of key tasks - it is a short-term solution,” he said.
“I doubt many of them are telling their clients they are outsourcing these things.”
Mr Dybner said there are certain things you can look at outsourcing, such as marketing.
“If you are not good at social media, that is stuff that you can outsource, but I don’t think anything that is a key task to managing somebody's property should be outsourced,” he said.
“I can’t imagine landlords being happy with all these things being outsourced.
“If you are going to provide a premium service, you really need to focus on training your staff, better services, better processes and adopting technology,” he added.