Is Your Property Manager Costing You Money Without You Realising It?
Deborah Gidman
Licensed Real Estate Agent offering both Property Management and Sales as well as property profiling for investors Owner Resident Property
Investing in property is supposed to generate wealth, but if you’re not careful, a bad property manager can silently drain your profits. The problem? Many landlords don’t even realise it’s happening until they’ve lost thousands of dollars.
A great property manager doesn’t just collect rent—they actively protect your investment, increase returns, and minimise costs. But many property managers operate reactively instead of proactively, leaving landlords with:
If you’re wondering whether your property manager is working for you—or costing you money, here are 5 key mistakes to watch out for.
1. Letting Maintenance Issues Spiral into Expensive Repairs
Many property managers ignore minor issues or wait for tenants to complain before acting. This approach costs landlords more in the long run.
Common examples of costly neglect: Slow leaks that turn into major water damage Cracked grout in showers leading to mould issues Small roof damage that results in expensive structural repairs Blocked gutters causing internal water leaks
The proactive approach: A great property manager identifies early warning signs during routine inspections and fixes issues before they become major expenses.
Example: I once noticed bubbling paint on a ceiling that another property manager had ignored. A quick investigation revealed a leaking pipe in the ceiling. The landlord saved thousands in potential water damage repairs.
2. Poor Tenant Selection = Missed Rent & Higher Costs
A bad tenant can be one of the most expensive mistakes an investor makes. If your property manager is only checking basic criteria (like income and credit), they’re not doing enough.
The real cost of poor tenant selection: Missed rent payments & long eviction processes Property damage & excessive wear and tear High turnover, meaning frequent re-letting costs
The proactive approach: I use a detailed vetting process that goes beyond the basics, including: Deep reference checks (not just calling the last landlord!) Reviewing rental history patterns Assessing tenant behaviour during inspections
Example: I once declined an applicant who looked great on paper but had a history of frequent disputes with past landlords. A detailed background check saved my landlord from months of potential unpaid rent and legal drama.
3. Failing to Maximise Rental Income (Undercharging Rent!)
Is your property rented below market value? Many property managers set and forget rent prices, failing to:
What this could be costing you: $20-$50 per week loss adds up to $1,000-$2,500 per year! Attracting the wrong tenants by pricing too low
领英推荐
The proactive approach: I regularly review market trends and provide clear advice on when and how to adjust rent without losing great tenants.
Example: One landlord was renting a property for $650/week, but a market review showed similar homes renting for $680/week. After a gentle rent increase strategy, we retained the tenant while adding $1,560 extra per year to the landlord’s income.
4. Long Vacancy Periods Due to Poor Marketing
A vacant property is lost income. If your property manager is slow to advertise, using outdated marketing techniques, or failing to engage quality tenants quickly, you could be losing weeks of rent unnecessarily.
What causes long vacancies? Poor listing quality (bad photos, uninspiring copy) Inefficient tenant screening & slow response times Failing to pre-market before tenants vacate
The proactive approach: Professional, eye-catching property marketing Fast responses to inquiries to capture tenant interest Pre-listing properties before they become vacant
Example: A property sat vacant for four weeks with another agency before the owner switched to me. I optimised the marketing, scheduled private viewings outside of normal hours, and secured a tenant within a week—saving the landlord $2,000 in lost rent.
6. Poor Preparation for Insurance Claims = Denied Payouts
If your property manager doesn’t know how to handle an insurance claim correctly, you could be left out of pocket for thousands.
The proactive approach:
Example: A landlord came to me after their insurance claim was rejected because the previous property manager had used the bond money to cover unpaid rent instead of allocating it for cleaning and damage. The policy didn’t cover cleaning costs, so the landlord lost out. I restructured the claim, reallocated the bond to cover cleaning and damages, and successfully secured an additional $2,500 in lost rent—money that would have otherwise been lost.
If you’re not sure whether your current property manager is costing you money, I offer a free investment health check—no strings attached.? Book in here
?? Call me on 0429 165 552?? Visitresidentproperty.com.au
I help property investors maximise rental returns and enjoy a stress-free experience with expert property management services. Check out the “Visit My Website” link below & see how we can help you!
1 个月Great tips Deb