Yesterday's Rent Collectors are Today's Property Managers

I have the distinct feeling that the business of property management is regressing.…going back in time to the dark ages, that is pre-computer. Now there are some who may be reading this post who do not know of a time when there was no email or the Internet or even Facebook.

A little bit of history….

When I started in real estate it wasn’t property management per se, it was ‘rent collecting’ and you were the rent collector. At that time, properties were advertised in the newspaper and prospective tenants would call by the office, leave a deposit and collect a key to view a property. ‘Rent collectors’ worked a 5-day week and properties were never open for inspection at set times. Property owners or tenants could not contact you after hours as mobile phones had not been invented (imagine that) and you certainly didn’t give anyone your home telephone number. You were paid a pittance but you had no involvement with the business outside your allocated 40 hour working week.

With the introduction of mobile phones, email and the Internet things began to change. In the early 90’s ‘Communication’ became the catch-phrase of the day and rent collectors became property managers with some even reaching the dizzy heights of ‘Asset Managers’, whatever that meant. Properties were marketed on various websites and the response from prospective tenants to this 24/7 availability of information was astounding.

We then progressed to on-line tenancy applications and maintenance requests. Some companies even provided on-line access to their property owners and tenants to view controlled areas of information regarding their property or tenancy.

With mobile phones came the detested ‘Voicemail’ closely followed by the ubiquitous text messaging. Property managers began carrying two mobile phones; one for business and one for their personal use. If they were anything like my wife Anne, when the phone rang it was a matter of a 20 second search of the handbag to find the thing so just imagine the confusion many property managers faced when they had to decide which one was ringing from somewhere inside their handbag. The stress of it all!

But I digress….

Property managers of the 90’s provided a superb service to their property owners and tenants through 24/7 communication tools but all too soon, the novelty wore off.

Many began to query why, when they were being paid (poorly in most of their eyes) to work a 37 ½ hour week, they were expected to answer calls from those pesky tenants and property owners after hours and on weekends? Why, for the same reason, should they be opening properties for inspection on weekends and after hours. Surely, there’s a better way and so was introduced the ‘Leasing Consultant’, normally a fresh faced young kid with a desire to get into real estate. No knowledge or experience, but a great desire.

For very similar reasons, the ‘New Business Consultant ‘came into being. Some may tell you this was due to the fact that property managers did not have the listing skills needed to grow the portfolio but this is not the case. It was property manager driven as most of the contact with prospective property owner clients was either after hours or on weekends and property managers “Are not paid to do that!”

So what has evolved?

Today’s property managers work a 5 day week; they don’t open properties for inspection; they don’t list new properties for management; most don’t have a mobile telephone number listed on their business cards so…..what’s different to the rent collector of 4 decades earlier?

Personal communication from today’s rent collectors is non-existent!

A tenant is in arrears with their rent and the software generates a text message telling them to pay up. If they don’t, an on-line application is made to the Court / Tribunal for a Hearing to have them evicted. The only possible personal contact is at the Hearing.

A tenant advises of a burst hot water service and an email or text is sent….

Yr ten sez hws burst if u dont call mi toda ill get it fixd
Kindest Regards
Myrtle, Your Asset Manager

There’s a belief that every property owner is just sitting by their computer or mobile phone waiting for a’ communication’ from their property manager – tell that to a miner in the Pilbara!

Routine inspections of properties are now carried out using a Flip camera or something similar(an app). The file is then sent to the property owner by email or through a mobile phone with the attaching comment –

heres yr insp rept
Kindest Regards
Myrtle, Your Asset Manager

Exaggeration? Definitely not! I’ve seen them.

We have regressed to a time clearly depicted in Planet of the Apes with communication expressed in abbreviated nonsensical messages in place of grunts.

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