How to avoid hassle when changing Property Managers – Part 2

If a change in Property Management provider is a conversation you’re either considering or currently having, there are three areas that our experience has shown us can help provide insight when deciding whether to switch.

This is Part Two in our series ‘Changing Your Property Management Provider’, and deals with common pitfalls and errors we see when people make the switch.

Common pitfalls and how to avoid these
Even if cost is the primary driver for changing your asset management team – there are both upfront as well as hidden costs in the process of switching out property managers. You certainly don’t want to find yourself ‘bouncing around’ property management firms every few years – apart from the reputational risk that the market will begin pricing into your services, these costs and disruption add up.

Unexpected or repeated costs aren’t necessarily the most common, avoidable error we’ve observed when a landlord or Resident’s Management Company (RMC) is considering changing their property management provider. Miscommunication, misinformation and a lack of engagement are three of the most common challenges that can influence cost and reduce potential upside when making a change.

Miscommunication
If you are in the market, then providing a clear brief on what has bought you there and the services you are seeking is vital to ensure that any potential provider is a proper match. There is nothing more common than the saying ‘That is what my old provider used to do, I thought it was industry standard’. The reality is that property management firms are businesses as well – if you’ve gone to market with a razor seeking to cut your costs, firm’s can and will respond to this by customising the services they offer in order to protect their own profit margins. Property is a highly competitive industry. Seek clarity that what you need is exactly what you will receive – and never be afraid to ask for line-item detail on a cost estimate. The more specific you are, the more informed you will be.

Misinformation

Clear and accurate information will allow a potential provider to have the full and complete picture of what you need now, as well as what you may require in the future. In any competitive pricing process, a buyer’s natural instinct to ‘soften’ or ‘overlook’ elements that a landlord may feel will push management fees up is natural – but ultimately a property management provider needs a full overview of the situation on the ground.

Providing your existing budget and historical service charge accounts may not strike you as a smart move – however our experience has shown that this is one of the most practical steps for a potential new provider to clearly understand what you actually need, or where your previous provider fell short. Removing guesswork reduces risk and exposure.

Be upfront and ask for advice, you’ll be surprised at the response you will receive from reputable firms.

Engaging in a spirit of partnership
Property management that works is all about finding the win-win balance. Property management firm, landlord, RMC, tenants, suppliers, council and community – all are stakeholders, particularly with larger assets. When you deal with a property management firm that places collaboration at the centre of their value proposition, you will find yourself on the road to results.

Property is about partnership. The elite tier of property management companies understand that the sweet spot for themselves are happy tenants and content landlords supported by good communication lines.

Setting any new relationship up for success is common sense. When commencing a search for a new property management company, investing in avoiding the common mistakes is a down-payment on increasing your property’s potential.

Established in Sheffield in 2004, Omnia Property Group is one of the nation’s major players in property with operations covering block and commercial property management, office and commercial lettings, student accommodation, residential lettings and facilities management.

To learn more about Omnia Property Group, or to speak with one of our experienced property management professionals, contact Omnia on 0114 2792840 or blockmanagement@omniaestates.com for a confidential and no-obligation discussion.