Could saving a few dollars now cost you much more down the track? Why cheaper is not always better…
With the media constantly screaming at us about the doom and gloom of the worlds current economic state and how it is only getting worse, it is not surprising that saving a few dollars is more and more on people’s minds, as a result we have had more and more people asking if we can reduce our fees to manage their property.
If I wanted to take the easy option I would say, OK, sure we don’t want to lose your business to another agent down the road who has offered you a cheaper rate. We will drop our fees just like they have done… But this is not the best answer for you as a client, and I urge you to be wary of the businesses that opt for this answer. If a property management business reduces their fees this will ultimately lead to that business having to reduce their level of service, which may end up costing you as a landlord more than the extra couple of dollars you may save in property management fees. The old adage “you get what you pay for” remains true. There are many businesses that offer property management services, what differentiates them in terms of service compared to their fees is what a savvy investor will look at.
I’ll tell you why this is the case, excellent service in Property Management depends on a combination of systems and processes, ongoing training and innovation with technology and most importantly the skill, experience level and passion of the team of people within any property management department. All of these factors cost money; a reduction of fees will ultimately result in a reduction in the level of service your property manager can offer you. 
Whilst in these tough economic times it is easy to focus on the initial cost of a service to you, now more than ever is the time to ask what am I getting for my money rather than, how much is it costing me?
It is also important to remember that the cost of having an agent manage your property is a tax deduction for you, so having a professional manage your property does not cost you in the end any way.
M Estate Agents are so confident that we can deliver the level of service you would expect from a property management professional we are able to offer a money back service guarantee to our clients. If you are interested to hear more about the levels of service we can offer you please do not hesitate to contact me sonyad@mestateagents.com.au.
Posted: Friday, 19th June 2009 at 1:05 pm
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Could saving a few dollars now cost you much more down the track? Why cheaper is not always better… ”
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The old addage of “paying less, but expecting more” just doesn’t equate, doesn’t matter what business we are referring to, unfortunately. In terms of enhancing your cashflow, you are far better working with your property manager, on strategies that can improve the value of your investment property, and hence improve the possible income - so get in contact with them to start moving.