I have this house in the country side which i just bought, should i get a rental agent? It already has a tenant in there, and the rental agent for the previous owner wants to continue, (sent me some documents and stuff.) The thing is, the weekly rent is only $120 (under rented, the real estate agent admitted to me, saying it sould be around $130-135. but the current tenant has been there for sometime, and takes care of the house well- single mother).
And the agent is going to charge $40 per month for their service.
SHould i raise the rent? or sack the agent?
If i pay the agent that $40 every month, it reduces the positive cashflow i am getting from this deal. any ideas?Hi Fullout,
If you have only one IP and you have your own maintanance team, you probably could manage it yourself. When you have several properies and your tennants can contact you at any time of day or night it becomes a problem. You also have to remember that there is as much work for the agent in managing a $80,000 IP as there is $800,000 (probably more) so that’s why the management fees appear so high as comared to rental.
Hope this helps[
]I have just brought one IP with Tenent there in Sydney, My weekly rental is $400, The Agent charged me 5% of rental GST inc.
I quote this just for your reference
CheersJulain [
]Hi Jullian,
I am also paying 5% for my Melbourne property but in regional areas I am paying 6.5% and that’s because they manage 3 for me, otherwise it’s 7-8%
Cheers
]
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