Moving into a new Property Management role is always a tough task - especially of you have to do it with little to no hand-over period from the outgoing Property Manager. There is a long period of adjustment as you learn so many things:

*  The properties you manage

*  The owner relationships and their quirks

*  The tenants and their history

*  What is outstanding that needs follow up

...and that is only the beginning.

Hopefully, you can move into a role where things are mostly under control, but often, this is not the case. You need to quickly find your feet & get things under control - letting things fester will only give the impression that any previous incompetence (assumed or confirmed) is only going to continue.

WHERE TO START

I have always found that the best place to start is at the beginning. You need to know what is outstanding & what has been completed. Often, the best point of call is a quick email to all tenants and landlords to introduce yourself - let them know there has been a change and while you are getting used to things, if they can let you know of anything they have requested that has not been attended to, it would help you get into the swing. Inviting them to phone you also show you are not "fobbing them off" with an email, but you don't necessarily have the ability to call everyone straight away.

This can often be seen as asking for trouble - more work at once that you can handle. Don't look at it like this, but instead see it as an opportunity to show your clients and customers that you are proactive, not reactive.

Any email responses you get should have an immediate response, even just a quick "thanks for your maintenance request, it is on the list", some waiting time whilst you get through everything will often be understood.

NOW WHERE?

Now that your maintenance is under control and you know what has to be done, you can look further into the files. What should you look for?

*  ARREARS

Any rent not paid is commission not being received. Getting straight to the problem tenants and showing a zero tolerance attitude is the best way to let people know that what may have been overlooked before will no longer be acceptable.

*  VACANCY RATES

Any vacant properties on your books, again, is commission not being received. Showing properties and processing applications takes a huge amount of your time. Get them rented, reintroduce the income to the business & have more time for other tasks.

*  LETTING FEES

Print yourself a report of let fees collected over the last 6 months, or even back to the previous financial year. Have they all been collected? This is a lucrative, standard fee that is too commonly missed in a poorly run department. Landlords usually understand if the fee is charged a little late - they have been expecting it anyway and can let you know if there was some other agreement as to why it was not charged.

*  COMMISSIONS

Check through your Management Agreements & take note of all agreed commissions & admin fees. Not, compare this to what has been entered into the computer - any discrepancies may be costing your agency income. Sometimes it is data entry error & easily fixed, other times there has been an occasion for a reduction in fees (which may have expired & not been returned to normal). Contact any owners about the variance before making the change, but you have a right to collect what has been agreed to.

*  RENEWING MANAGEMENT AGREEMENTS

This is an important one. Very often, Management Agreements have been signed and agreed to many years ago - obviously significant changes in the industry have been made since then. Don't be afraid to increase fees to be in line with the rest of your managed properties. You will be surprised (depending on the service up until now) how many will not fight the change.

*  LEASE RENEWALS

Start with the periodic leases - conduct a routine, review the rent & contact the owner. This shows you are not only increasing your revenue, but also the income from their investment. There are not many landlords who won't agree to an increase in rent, and they will be grateful for the inspection report so soon into the changeover.

The next focus should be the current leases expiring within the next three months - get the routines done, review the rent & contact the owners. It is a great way to get to know your rent roll. I have found in a busy rent roll, routine inspections are often the first thing to be pushed aside. Not good for maintenance, owner relationships, or anything else. Plus - a property is so much easier to manage when you have seen it in person!!!

THE RESULT

Once you feel you have gotten through the majority of tasks above, look further into the bottom line. All of you fees & commissions you collect per month, less expenses (i.e. department wages, the average cost of phone calls, technology, postage and rent for your space).

Month by month, starting with the two months previous to your arrival, analyse the end of month totals. You may be making a profit, or running at a loss, but either way, you should have been able to increase your revenue by at least 10%, if not, much more. The results will differ depending on the health of your rent roll previously, and increase as new business comes in - something you can focus on not that you know your new rent roll inside & out!

All of the changes can't and won't be implemented straight away - it takes time to get through these tasks, but the sooner you begin, you will be seen as a proactive Property Manager, who is organised, diligent and all about maximising returns - for the business AND for the investor!

You will be back in control. Your tenants and landlords will have respect for the work you have put into bringing everything into line, your Principal will find you an asset to the business, and you can then run the department with structure and organisation!