When there is a hot political issue facing rental property, I am always amazed at the lack of property managers and management companies that are involved in the given issue. In my view, management companies holistically look after your investment. When an owner entrusts a building to a management company, they are not only looking for a well qualified company to run the day to day operations but they are also looking for a company that will keep them up to date on the most recent regulations. Government mandates are increasingly becoming a significant cost of doing business.
We receive calls everyday on issues that have long since been voted on and solidified in law. Usually the owner will say they simply did not know about the issue. I will always ask if they have been actively involved with AAGLA and do they have a property manager? If they have a property manager, I will ask if they too are involved in AAGLA. If your manager is not involved with AAGLA, you are missing key regulatory insurance that helps ensure you are informed and protected.
I was recently at a public meeting that was extremely important to rental owners. During the meeting I met an owner who said she had a management company. I immediately asked, “where are they?”. The owner responded that no representative of the company was there but that she had alerted them and the management company indicated pending regulations didn’t really affect what they were doing.
My jaw dropped. Not only did I recommend the owner consider finding a new property management company but also requested she ensure whoever manages the property consider it their responsibility to protect and enhance her investment. Management companies should not just plan on running the operations, they should be adding value through monitoring all aspects of the business.
Ensure your property management company is involved politically and monitoring local legislation. Property management companies should be sending representatives to advocate on your behalf and they certainly should be alerting you of the unfolding in a City. An easy way to make sure the company is keeping up to date, is ensuring they are an active member in AAGLA.