10 Top Reasons to Terminate a Management

Karen Herbert cropped

An article by Karen Herbert

1. The property is unsafe.  

Don’t be afraid to terminate an owner if he will not spend money on rectifying a safety hazard or a potential risk.  The ‘No Win, No Fee’ lawyers continue to circle our environment waiting for their next potential client.  It’s not worth the pain.

2. The property poses a health risk

One of the major potential health risk in our properties would have to be MOULD.   And it is difficult to manage.  If the problem cannot be solved, then terminate the property.

3. The owner will not fix maintenance

In today’s world of litigation, this is just no longer acceptable.  The court rooms are filled with cases where the Property Manager/Owner will not keep the property in good condition and fit to live in.

4. The owner will not spend money

We have all had experience with an owner who is not prepared to spend money on maintaining or uplifting his property.  An investment property is exactly that, an investment and needs to be fuelled to sustain its return.  The better the property, the better the Resident and the less work for the Property Manager.

5. The owner refuses to adhere to the legislation

Whether it be discrimination, grounds for entry to the premises or disregarding the legislation surrounding the sale of a property, the legislation is there to protect you but only if you adhere to it. 

6. The owner is intimidating

I have seen too many property managers say yes to an owner because they are scared to say no.   Remember that we are the expert in our industry and knowledge has power.  Stay informed, keep educated and know your legislation.  This will give you the courage to say no.

7. The owner has no Landlord Protection Insurance.

It’s called Peace of Mind, both for you as the property manager and the owner/client if something goes wrong.  For less than one weeks rent, it’s a must in today’s environment.

8. The owner does his own maintenance

With all the legislation surrounding our industry, I believe that this poses one of our greatest risk exposures, insurances, licences and qualifications, not to mention that it puts the owner directly in contact with a tenant.  Not on.

9. The return is too low.

Every property should have a minimum return to the Agency and be monitored as a KPI on a regular basis. At least know your breakeven point on managing a property.

10. The 80 – 20 Rule

Every year you should make a list of the Top 10 properties you would like to terminate and the reasons why.   Mostly these are the properties/owners who you spend 80% of your time with and who are costing you money.   Wouldn’t you rather be spending time managing the properties who make you more money??