There are many reasons why you should stick with a property management company. But being too afraid to jump ship shouldn’t be one of them.
As Toronto’s favourite property management company, we understand what it takes to oversee real estate investments all over the city. But not every company has the same experience, knowledge, or dedication. If you mistakenly partner with one of these companies, you’ll likely have a lacklustre support system that leaves you out of pocket.
A property manager that costs you money is an obvious red flag, but it’s not always this easy to read the signs. Check out this list below to learn how to spot the other warning signs. Here are five reasons you should consider changing property managers.
1. A High Turnover Rate
If you receive notice of your tenants moving out every year, there’s something wrong. It means the wrong kind of tenant is being picked for your property. Instead of long-term renters looking for a place to call home, you’re signing on nomadic people searching for temporary places to lay their heads.
Landlords should, if unhappy with their current tenant selection service, think about changing property managers immediately. Turnover is an administrative headache, but the worst thing is it’s expensive. A high turnover rate is a costly problem that actively undercuts your bottom line.
When a tenant moves out, you lose out on rent, and you may have to sink additional money into maintenance to get the space ready for the next renter.
According to the National Apartment Association (NAA), a single move-out could cost you anywhere between $1,000 and $5,000. Extrapolating these costs to a 225-unit complex with a 40% turnover rate, the NAA reports a landlord would spend roughly $162,000 a year.
While a 0% turnover rate may not be possible, your unit, condo, or townhome should not have a revolving door.
Here at Property Management Toronto, we invest in a thorough selection process to find you respectful, reliable, and trustworthy tenants. We comb through the candidates until we have a shortlist of the best tenants who will treat your home like it’s their own. All this effort increases the chance your tenant sticks around from year to year.
2. Slow Response Time
Does the phone go straight to voicemail or ring endlessly without anyone picking up? Do your emails go unacknowledged for days at a time? Does the property manager assigned to your townhome or condo fail to check-in or produce reports on time?
These are all signs it’s time to make a switch.
Your property management company is an extension of your real estate business, and the manager assigned to your property is your investment’s representative. You should expect a responsive professional who answers your calls promptly.
Here at Property Management Toronto, we’re available all day, every day. That includes evenings, weekends, and holidays to ensure we provide swift support to you and your tenants.
3. Poor Maintenance
Quality maintenance is essential when it comes to keeping your real estate investment in its best condition. It ensures your unit, condo, or townhome always looks and functions at its best. This way, you can set your rent at its top value while still retaining A+ renters.
A property manager that doesn’t care about maintenance will let things slide, and their apathy can impair your real estate investment’s performance.
If property’s condition diminishes, you’ll see your turnover and vacancy rates climb as tenants leave your unit behind for better locations. It may even get you into trouble with the Landlord and Tenant Board if your management company fails to provide essential repairs on time.
Here at Property Management Toronto, we care deeply about your real estate investment. We field tenant’s requests for maintenance and repairs on a 24/7 basis so that we can take the appropriate action quickly.
If there’s a problem, we refer to our network of professional electricians, plumbers, handymen, and pest control companies to ensure we always facilitate quality maintenance as per the Ontario Residential Tenancies Act.
4. Bad Advice
Buying or selling an investment property in Toronto can be a daunting experience — even when there isn’t a pandemic to contend with. You should be able to lean on your property management company in Toronto to help you get through this stressful and exciting time in your life. You should expect them to support every decision with experienced and knowledgeable advice.
If you’re looking for Toronto investment properties, talk to us today. As a boutique property management company, we can offer personalized consultations when you’re ready to buy, sell, or tenant a property.
We have years of experience doing what we do while living in this great city. As the housing market begins to heat up again, you can trust us to offer informed and helpful advice at every step of the way.
5. Confusing or Unclear Fees
Transparency is key when you’re hiring a property management company. There should be no confusion over the breakdown of their fees, nor should you ever spot a surprising charge or repair on your monthly statements.
To keep things simple and upfront, we’re committed to providing fully transparent pricing with no hidden fees. We don’t take every opportunity to upcharge you because our services are already all-inclusive.
Every month, we’ll keep you in the loop with detailed financial reports that breakdown your real estate investment property’s cash flow, including all maintenance and repairs we take on. Soon, these reports will be available on our Tenant Cloud so that you can keep tabs with a simple click of your mouse.
How to Switch Property Management Companies
If it’s time, it’s time. Don’t delay making the switch. Sticking with an ineffective management company that doesn’t support you as a landlord only costs you money.
Let your current company know, notifying them by phone and in writing three to four weeks before you intend to break your contract. Refer to your contract to ensure this gives you enough time to terminate your business relationship.
Once you alert them of your decision, you’ll want to check your leases and modify them to remove the company if they’re mentioned. You’ll also have to inform your tenants that a different company will be taking over, so they understand where to send their rent payments and maintenance requests.
Last but not least, you’ll have to sign on with your replacement company. We recommend having one in place before you break your contract to create a smoother transition. So, if you’re thinking about changing property managers, get in touch today. You can call us to learn more about what it’s like working with the best property management company Toronto has to offer!