Five Ways Your Property Manager Could Be Costing You Money

Introduction

Think of your investment in a residential apartment block as a plumbing system. At first, everything flows smoothly, with water (your wealth) running efficiently through sturdy pipes. But over time, cracks can form in the pipes, causing leaks that slowly but steadily drain your
resources.

Having a poor-performing property manager is like ignoring the cracks in those pipes. While the damage might not be obvious at first, the ongoing leaks can escalate, leading to significant losses and costly repairs.

Let’s identify five key cracks in the system where your property manager might be costing you
money:

Crack 1: No Long-Term Maintenance Plan

The Problem:

Without a proactive approach to maintaining the building, wear and tear will inevitably
result in expensive, reactive fixes.

Questions to Ask:

•  Is there a structured plan for addressing future repairs and maintenance?
• Are we setting aside the right amount of money for future needs based on similar developments and our building’s specific assets?

Crack 2: Lack of Transparency and Financial Oversight

The Problem:

Poor visibility into financial and regulatory matters creates uncertainty and the potential for unanticipated costs.

Questions to Ask:

• Are all certificates for compliance up to date and easily accessible?
• Why have service charges changed, and what reviews or optimisations are planned for this year?
• Could there be a risk of unexpected top-up charges due to hidden overspending?

Crack 3: Mismanaging Your Money

The Problem:
Without careful oversight, funds can be wasted on unnecessary expenses or missed opportunities for savings, letting money slip away.

Questions to Ask:

• Are repeat costs or maintenance expenses being monitored for cost efficiency?
• Are warranties being utilised to minimise repair costs?
• What specific savings or efficiencies has the property manager delivered this year?

Crack 4: Relying on Inexperienced or Unqualified Staff

The Problem:
High staff turnover or unqualified managers can lead to inconsistent oversight, allowing
small issues to snowball into major problems.

Questions to Ask:

• How often is the property inspected, and what tangible improvements result from those visits?
• Are inspections carried out by professionals with the appropriate qualifications?
• How accessible is an experienced property manager for queries or concerns?

Crack 5: Poor Governance and Documentation During a Sale

The Problem:
Disorganised or incomplete records can slow down the sales process, reduce your property’s value, or make it less appealing to buyers.

Questions to Ask:

• Are meeting minutes, maintenance schedules, and financial records readily available?
• Is there a clear plan for managing major projects and the sinking fund?
• Can the property manager quickly produce a comprehensive sales pack for potential buyers?

Conclusion

Cracked pipes may seem minor at first, but over time, they can cause major damage if left unaddressed. Similarly, a property manager who isn’t protecting your interests can silently erode your investment. By identifying and addressing these five cracks, you can safeguard your
wealth and prevent your property manager from costing you unnecessary money.