Hi all,
Having purchased my first property almost 8 months ago I am almost at a stage where I am able to rent it out. I was wondering if anyone could advise me on what I should be aware of before going ahead and putting my property on the rental market. I plan on using a Real Estate agent to manage the property and believe I can rent it out for 220pw. What percentage does the real estate take? and what are some things I should be wary of in the way of tenants and real estate agents. Any help would be great, thanks
Shade, look at this post
https://www.propertyinvesting.com/forum/topic/19294.html
We buy properties in Adelaide. Immediate Cash Settlements, No Real Estate Agents, No Fees.
[email protected]
phone 0412 437 582Hi Shade
Real estate sales agents won’t manage your property- property managers will. However, as most of these are employed within RE offices, it’s easy to confuse the two.
PM’s are specialists in renting and finding tenants and will be able to provide you with more specific information than a REA can about current vacancies, tenant preferences and likely rents. Choosing the right one is paramount to having a much more smoothly running IP, with less hassle for you
Coincidentally, I’ve actually recently written a complete article on the site I’m involved with (see below) about the best questions and issues to consider when employing an effective PM.
They really can make an enormous difference to your investment and you should interview more than one participant, for the important job of looking after your precious property.
By the way, fees do vary, depending on state and region. Where is your IP?
My fees range from the cheapest 6% to 8.5%. Watch out for other fees, however, including postage/petties, inspection and report fees.
Good luck in your quest!Cheers,
Pro-Activehttp://www.invested.com.au Australia’s premier Investor Education site
Shade,
Further to the ink below posted by Dr X, consider this:
Agents get paid a commission on the rent so it makes little difference to them if the prop gets $220 per week or $260 per week (approx $3 week difference for the agent on a 7% mgt fee).No, what they want do do is get a tenant in as quickly and easily as possible. Most don’t really care what rent you get, they are more interested in what commission they get. Do some extensive research on similar properties in the area so you determine the rent – not the lazy prop mgr who wants an easy leasing.
A good prop mgr is worth their weght in gold.
Cheers
DannyPro Active
Could you post the link to your article? Browsing through the forums of your site I cant seem to find it.
Thanks for everyones replies
Dr-X
So do you manage your own rental properties? I believe can manage my own property but what would I need to do so?
Where would I get the right forms eg Tenant applications, contracts etc etc. Could you or anyone please help in me setting up and managing my own property.
Sorry Shade- I should have been more specific- was in a rush when I penned that last post!
The article is actually under the Education heading at the top of the page, but you need to be a member to access the whole article. As you can appreciate, such items take time and research to write. There is an annual membership fee to the site, where you can post on the forums and access the education section but, if I can say so myself (despite a little plug here), with the professionals that are answering the questions on the forum, it’s very worthwhile.
Naturally, you can make up your own mind by checking it out- no pressure at all
For a quick rundown on what to check out in a good PM, I would suggest ideally interviewing at least 3, asking fellow investors in that area for personal recommendations (a forum such as this is a great place to start) and going with someone who preferably has solid local knowledge.
Ask them how many props they have on their books (ideal is no more than 120 for one PM), what procedures they follow with common tenant issues occur (arrears, damaging property, leaving without notice etc) and don’t be afraid to ask for testimonials from other landlords.
Good luck in your quest!Cheers,
Pro-Activehttp://www.invested.com.au Australia’s premier Investor Education site
Should you wish to go down the self management path (which I wouldn’t recommend for your first property) consider reading Suzi Bilosh’s book: THE AUSTRALIAN LANDLORDS HANDBOOK as it’s fairly straightforward. Keep in mind that legislation does change and so you’ll need to be aware of the current legislation regarding tenancies.
Look that info up here if in NSW: http://www.fairtrading.nsw.gov.au/realestaterenting/agentsmanagers/agreement_manageofresidentialproporrural.htmlYou can buy a Residential Lease Pack from most newsagencies and post offices which allows you to set up for your own management.
Be aware, however, that some landlord insurance policies may not cover you if you don’t use a PM. Just double check when you’re shopping around for this type of insurance.
Good luck!Cheers,
Pro-Activehttp://www.invested.com.au Australia’s premier Investor Education site
As I have recently learn’t make sure that you contact your pm at least once a month to see if things are running smoothly.
Also be very specific on how you would like to be contacted by them whether phone or email.
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