A Low Cost Property Manager Can Cost You More Money
Many landlords are under the illusion that hiring a low-cost property manager is a smart way to save money. But in reality, cutting corners on property management is one of the quickest ways to erode the value and profitability of your asset.
The High Cost of Low Standards
A good commercial property manager adds value. A bad one quietly subtracts it — and often, you won’t even realize until the financial damage is done.
1. Missed Rent Reviews = Missed Income
We frequently see poorly-managed properties where rent reviews are neglected for years. By the time the oversight is discovered, thousands in potential income have already been lost;.
2. You’re Footing the Bill for the Tenant’s Utilities
In many commercial leases, tenants are responsible for reimbursing landlords for urban utilities such as water, rates and building insurance. However, we’ve seen inexperienced or overworked property managers fail to on-charge these expenses. That means the owner - you - ends up paying for costs that should have been recouped from the tenant. Over the course of a multi-year lease, these seemingly small monthly charges can add up to tens of thousands of dollars in lost recoveries.
3. Paying Trades to fix a tenants responsibility
We’ve seen property managers charge landlords for trade callouts to fix maintenance issues that under the lease are the tenants responsibility. Worse, when trades are needed, poor managers often don’t vet the right trade for the job, leading to inflated invoices, multiple callouts, and in some cases, work that has to be redone. At Tewksbury Commercial we inspect maintenance issues thoroughly before calling on trades to avoid unnecessary fees to the Landlord.
4. Fire and Asbestos Compliance
Fire and Asbestos compliance is a legal requirement for commercial properties in QLD. Neglecting this obligation could result in severe legal action, including fines or litigation. Yet many budget property managers either aren’t aware of these responsibilities or don’t have the systems in place to track and enforce them.
Instead of asking “What do they cost?”, the better question is “What value do they add?”. The right property manager pays for themselves many times over. It takes time and effort to properly manage a property.
At Tewksbury Commercial we are committed to ensuring our clients are getting the most value out of their asset.
If you suspect your current property manager might be letting you down, reach out to Darren Lucchese on 0420 986 008 to discuss the Tewksbury Commercial Property Management Difference.