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WARNING!!! – Cheap Property Managers Can End Up Being Very Expensive!

Pictures speak 1,000 words… there is always someone willing to manage your property cheaper, and you get what you pay for!

 

We understand that at first glance discount providers appear attractive. However, we encourage you to consider that there is usually a reason why these businesses need to offer ploys like this to lure and secure new business.

 

As yourself why do businesses have to discount their fees to secure new business? It is usually because they can’t retain business due to the poor quality of service they provide. Alternatively, they have extra fees hidden in the fine print to make up the difference between Bluestones open and transparent fees and their seemingly cheaper fees.

 

Real Estate Institute of Australia (REIA) research confirmed it’s unsustainable to charge management fees less than 7.5% in QLD reporting investors should be mindful of the long-term sustainability of anyone charging less than 7.5%. Why? Because cost-cutting agencies can’t afford to pay for qualified staff experienced at mitigating your loss. Discount agencies also can’t pay for the essential tools required to manage your property effectively. Plus cheap agencies can’t afford to do what’s needed to maintain the value of your property to its highest and best rental value, subsequently decreasing equity/sale price. 

 

While we can appreciate that on the surface, reduced fees seem appealing, but the average investor only saves about $4 per week! Property managers charging low fees can’t afford to stay in business unless they cut corners on tenant selection, inspections, maintenance, reporting, and chasing your rent. Don’t fall for the trick of discounted fees when Bluestone’s quality service makes you more money than you are trying to save! Bluestone does this by achieving higher than average rents with lower than average vacancy periods, plus they maintain the property to the highest possible standard increasing rent, equity and capital value.

 

Owners who choose these cheap agencies regretfully discover that they end up paying more only not to receive communication, 24/7 portal access to their critical info, access to their property manager and mandatory routine inspection reports.

 

“The bitterness of poor quality remains long after the sweetness of low price is forgotten” – Benjamin Franklin.

 

Cut-rate fees usually cost investors a lot more money in the long run than are trying to save so some food for thought:

  1. You think you’re saving $4 a week on management fees, only for it to end up costing you $10 a week in hidden charges!

  2. Economy agents often advertise properties at below-market value rents to make them easier and quicker to rent, but the ploy comes at your expense, e.g. $20 less a week = $1,040 less every year.

  3. Cheap agents often approve the first tenants that apply without screening them, which can result in thousands of dollars in lost rent plus additional cost to rectify cleaning and damage.

  4. Discount providers have to cut corners to make money so they may not do basic tasks like regularly inspect the property and report on the condition and cleanliness.

  5. Poor management, e.g. failure to bring maintenance to your attention results in the condition of the property to deteriorate along with the rent you can charge. Consequently, this affects the value of the property, costing you tens of thousands of dollars in lost equity when it comes time to refinance or sell.

 

“If you think it’s expensive to hire a professional to do the job, wait until you hire an amateur.” – Red Adair.

 

Your property is a significant investment and likely one of the most valuable assets you own. So it makes sense to invest in a quality, honest and reliable property management company. A business that maintains your property to the highest possible standard resulting in the highest possible rental yield and the highest possible sale or refinancing value.

 

Last but not lease please remember that – Cheap Property Managers Can End Up Being Very Expensive!

 

Investment Regards,

 

Mark Shorrock

Managing Director & Principal Licensee

Bluestone – Property Management For Wealth Creation

M: 0439 979 095 | mshorrock@bluestonepm.com.au

Office Mobile (call or text): 0422 676 416

3/269 Abbotsford Road, Bowen Hills Q 4006

Bluestone Property Management & Sales is the real estate agent that savvy Investors use when renting out their rental property/properties in Brisbane Queensland (QLD). Why because Bluestone’s Property Managers maximise the rental yield and minimise the stress involved in managing their units, apartments, townhouse and houses. Additionally, Bluestones Property Management Fees (commission charges) provide excellent value for money, so if things aren’t stacking up with your current agency give the Team at Bluestone a call.

Disclaimer The information provided by Bluestone Property Management is of a general nature only and is not intended to constitute legal advice under any circumstances. Individuals should consider their own circumstances before proceeding to rely upon any information provided by Bluestone Property Management. Whilst care has been taken in best practice advice provided, and the information contained in it has been obtained from sources that Bluestone Property Management believe to be reliable, Bluestone Property Management (including its directors, officers, employees and contractors) does not warrant, represent or guarantee the accuracy, completeness or fitness for purpose of that information. Bluestone Property Management (including its directors, officers, employees and contractors) accordingly does not accept any responsibility, liability, loss or damage whatsoever resulting from the use of the information provided. By using the services of Bluestone Property Management, Clients acknowledge that they have read, understood and accepted this disclaimer of liability.