Powered by MOMENTUM MEDIA
realestatebusiness logo

Breaking news and updates daily. Subscribe to our Newsletter!

Home of the REB Top 100 Agents
Breaking news and updates daily. Subscribe to our newsletter

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

rpm logo latest

Avid investor spills on what makes a good property manager

By Bianca Dabu
21 November 2019 | 1 minute read
Eric Wu reb

An investor has provided insight into the factors he weighs up when considering building on his property portfolio, particularly how to ensure he’s found the most appropriate property manager for these investments.

Throughout his investment journey wherein he successfully built a nine-property portfolio, Eric Wu has made sure to engage property professionals to help him make the best decisions and ultimately achieve his financial goals.

One of the most important parts of his financial team are property managers, who oversee the maintenance of his properties as well as the operations associated with his investments.

Advertisement
Advertisement

According to Mr Wu, a meaningful conversation with potential managers helps him assess the role they could play in helping him grow his portfolio.

According to the property investor, some of the questions he asks are:

  • “How many [properties do] you manage?”
  • “How many years [have you] been in the industry?”
  • “How do you deal with a tenant runaway on an insurance claim?”

“Once you talk to them, you will know, roughly, whether you are on track or not,” he said.

Commission

Many investors often think twice when property managers take high percentage from their rent.

However, Mr Wu believes that while the commission is important, it should not be a very critical factor to consider when choosing a professional to work with.

“Very likely, they’re only getting 1 per cent or 1.5 per cent, and that’s only a few dollars away,” he said.

“It doesn’t really matter much because not only can they manage your property well and keep everything in order, they can also keep the tenant happy and paying on time — all the issues [are] addressed on time.

“Im happy to pay the person more. There’s no problem at all.”

At the end of the day, good professionals are worth their weight in gold as they provide quality services and allow the investor to enjoy the benefits of having more time and less stress in their life.

“You’re paying your property manager to take the headaches away from you,” Mr Wu highlighted.

Proactive professionals

Mr Wu believes that dealing with property professionals should be a “reciprocal business” — as long both parties enjoy the benefits of working with each other, then it remains a good relationship.

However, if an issue remains unsolved for months or tenants continuously explain and eventually leave, then maybe it’s time to reconsider the members of the financial team.

According to Mr Wu, good property professionals are proactive and, thus, consistently seek opportunities to help the investor succeed.

“I really like the proactive managers. They can look at opportunities, whether they can increase rent or not,” he said.

“If the market’s not good, they should tell me, ‘Rent should be kept at where it is,’ or they can say, ‘This is what you can do to your property to increase the potential of increased rent.’”

Property managers are also expected to be transparent around bills and maintain good inspection management and reporting.

Ultimately, good property professionals put the best interests of the investors first and foremost.

“It’s like they are running their own business but they are running it for my own benefit — they also think like I think. They put their foot in my shoes for my interest, not theirs only,” Mr Wu concluded.

Avid investor spills on what makes a good property manager
Eric Wu reb
lawyersweekly logo

ABOUT THE AUTHOR


Emma Ryan

Emma Ryan

Emma Ryan is the deputy head of editorial at Momentum Media.

Emma has worked for Momentum Media since 2015, and has since been responsible for breaking some of the biggest stories in corporate Australia, including across the legal, mortgages, real estate and wealth industries. In addition, Emma has launched several additional sub-brands and events, driven by a passion to deliver quality and timely content to audiences through multiple platforms.

Email Emma on: [email protected]com.au

Rankings
rankings
JUST RELEASED
May 09, 2022

REB Top 50 Women in Real Estate 2022

REB is thrilled to present the Top 50 Women in Real Estate 2022 ranking, which sets t ... LEARN MORE

rankings
JUST RELEASED
May 04, 2022

REB Top 100 Agents 2022

Now in its second decade, the REB Top 100 Agents 2022 rankings are the most revered s ... LEARN MORE

rankings
JUST RELEASED
May 02, 2022

REB Top 50 Agents NSW 2022

Even a pandemic has not put the brakes on the unstoppable property market in NSW, whi ... LEARN MORE

rankings
JUST RELEASED
April 27, 2022

REB Top 50 Agents VIC 2022

The COVID-19 crisis has not deterred the property market in Victoria, which has been ... LEARN MORE

rankings
JUST RELEASED
April 25, 2022

REB Top 50 Agents QLD 2022

As the property market continues to roar in Brisbane and Queensland, the REB Top 50 A ... LEARN MORE

Coming up

rankings rankings

 

Subscribe to our RPM
mailing list

 

Do you have an industry update?

top suburbs

12 month growth
Box Hill
127.02%
Mollymook
82.85%
Brightwaters
79.93%
Cleve
78.13%
Bawley Point
76.2%
Murrays Beach
75.57%
Terranora
70%
Crescent Head
69.38%
Park Ridge South
68.32%
Mollymook Beach
67.09%
SEE AREA REPORTS ON SMART PROPERTY INVESTMENT WEBSITE
Subscribe to Newsletter

Ensure you never miss an issue of the Real Estate Business Bulletin.
Enter your email to receive the latest real estate advice and tools to help you sell.