Real estate agencies that split their attention between sales and property management are very common, but the service they deliver their rental property owners can be spasmodic. An agency that specializes in property management can deliver the level of service required to successfully look after a portfolio of rental properties. http://www.assetmanagers.co.nz

1. Serving Two Masters Delivers Poor Service to Rental Property Owners
In this one-size-fits-all society people are always looking for a level of service from business
that demonstrates to them that they actually matter, and are not just simply a number in a
transaction. There are many service delivery businesses that aim for the lowest common
denominator, delivering the least amount of service that the customer will tolerate, for the
lowest price. Many fast food outlets fall into this category, as well as retailers and other
service providers that appeal to a mass market. Real estate agencies can also fall into this
trap with many of them working in a dual capacity in both sales and property management.
Traditionally, property sales have always been the most lucrative in terms of earnings from
commissions by the agent who sells the property, when the market is buoyant. The property
management Christchurch side of the agency is often considered the “fall-back” position
when the sales market is flat and is seen as a way to keep operating until the market turns
for the better.
For the owner of a rental property, this is not the ideal situation. The property for them
represents a considerable investment, and they are relying on income from the property to
either fund the mortgage while building equity in the property, or simply to increase their
standard of living. The least desirable thing is to have their property managed by an agency
that treats it as an afterthought.
Most large agencies with a dual purpose have structured their team so it is seen to be
looking after the interest of both sides. They may have part of the team that just does
sales, and the rest looking after rental properties. They may even have dedicated managers
overseeing each area, so that a prospective rental property client might believe that their
property would be looked after exclusively by the rental team. In practice it is often the case
that the agencies cut costs by shuffling staff between each section to suit short term
demands, with sales usually the top priority. The attention to detail required to give quality
service to the owner of a rental property gets lost in the daily operational muddle.
Contrast this scenario with a property management agency that does only that – property
management. With their corporate focus squarely on the clients, they have the business
systems in place to screen out inappropriate tenants, conduct regular property inspections,
arrange for repairs to be done that maintain the value of the property, report all activity and
account for funds regularly to the property owner. As dedicated property managers
Christchurch there is no conflict of interest or being pulled in different directions, and as a
result, the property owners and tenants both receive the best possible service and
attention.
For people who own rental properties, particularly if they live out of the area, or especially
out of the country, a quality property management service is worth that little extra.
Tenancies are hassle-free, the property is tenanted for the majority of the time and the
owners can be confident that their valuable property is being treated like the important
asset it is.
http://www.assetmanagers.co.nz