Am looking to invest in some properties this year….am very new to all this and only 22 years, but have read most of Steves books, have immersed myself in investing information and have been following the property market closely (predominantly Brisbane) for a few years now..
I finally have the money to use as a deposit, and am in the middle of sorting out finances to see how much I can borrow..
I am mainly interested in buying in QLD, but would eventually like to diversify my portfolio and buy in other parts of the country… So I am looking for a property manager to help me with all of this.
I wanted to ask what your thoughts would be on doing this? Would I go through a buyers agent or property management group that deals with property nation wide? and is this possible, or do they normally only service a small area?
I have been doing some research on buyers agents in QLD and hae found most of them charge the same rate, however I was interested to see if anyone has had any personal, positive experience with any of them and if they would be willing to share the details? I am just worried (as everyone is) of trusting a group that may not give each individual investors and their properties enough attention….
From what I gather property managers are more involved in the property after the sale, whereas buyers agent are great at seeking out properties and doing valuations etc…so who do you think would be best to use?
I live in the NT at the moment, so while I will get a chance to see my investment properties every now and then during the year, I really need to feel safe that it is being monitored and managed properly.
Sorry this has been so long…. hope I have made sense. Any advice would be great.
Kind regards
Katie
Hi Katie,
First of all, congratulations on your decision to buy a property this year.
With regards to your question on buyers agent/property managers. In my opinion, they perform different functions. A buyers agent acts on behalf of the buyers (obviously for a fee). You would typically use them at the time of purchasing a property. They will assist you in completing the purchase, valuations, due diligence, negotiation, etc. You can get more information on the buyers agents from the following website (Real Estate Buyers Agents Association of Australia) http://www.rebaa.com.au/home.htm. I personally have used positiverealestate.com.au and am very happy with their services.
Property Managers on the other hand are professionals who will manage the rental aspect of your investment property. They will seek new tenants, look after the property maintenance, collect rent, etc. You will find property managers are localised because they have to be close to the property to manage it. Almost all property agents offer Property Management as a service. You can use national property agents like Ray White, LJ Hooker, etc but the actual property managers will be local.
Hope this helps.All good points Sanjiv.
With the property agent I would investigate them with each property.
Remember that Ray White, LJ Hooker, etc are only franchises and the property managers are often only employees.
You can find this absolutly fantastic person in one town, only to find the PM from the same real estate group in the neighbouring town is a complete dud.
I would set up a checklist to evaluate each one of them, and give them a phone interview if you cannot get to their office.
The checklist should include day to day things (tenant evaluations, property inspections, fees, etc) as well as problem scenarios. See if they have standard procedures for certain events (no-payment of rent, damage to the property, etc)
sanjivgupta and bridgebuff
thanks so much for your replies.. ill check out positive real estate.com and will also start trying to get an idea of how each real estate agent and their property managers operate…i think it will say a lot for how personalised they are when I approach them with questions…
thanks again guys and any other experiences welcome guys
A buyers agent could be of use to you for locating a property that fits within your criteria.
A property manager could then be useful for arranging a tenant etc.
Choose a buyers agent carefully and hopefully it will be a great longstanding relationship.Have fun [specool]
Hi Kate,
Well just a quick response. I have found agents are really interested in closing sales rather than looking after your interests. The difference between these two are that ‘your interests’ is to find a property of value that you can benfit from.. the other is simply purchase. The agent will not guide you toward you interests (unless a friend, mentor etc). I guess my advice is to recognize your objectives and try to go through it. Its likely you will have a few false start but n the end you will learn and get there soon. Learning to negotiate and close a deal is how you truely make the money… you need to be good at this yourself! Know what I mean?
Jonathan
Thanks
Jonohug
Jonohug,
I am not sure that you understand the difference between a real estate agent and a buyer’s agent.
The first works for the vendor, and has as such (at least in theory) the vendor’s interest in mind.A buyer’s agent works for the buyer and looks for properties according to the terms that the buyers specifies. If he is any good, he will negotiate a favorable deal.
Having said all that, there are good and bad real estate agents as well as good and bad buyers agents.
Part of your job in selecting either to represent you is to separate the good from the bad.
I heard a good example today. If you find a good real estate agent you use them always when you sell and sometimes when you buy. A bad real estate agent you will only buy from.
And what defines a good real estate agent. They are often the ones that you hate when you buy because they will not budge on the buying price. Remember they represent the vendor.
Hi Katie,
I used a buyer agent in WA to help me source our first property. I set up a meeting with the director who spent a couple of hours with me outlining what they do etc. Apparently this was a complete novelty for them as they rarely meet clients face to face, but it helped me to feel confident that I was parting with the finders fee for the right reasons. If you use one, I would recommend setting up a meeting for your own peace of mind. You can also compare a few that way. I used the same approach to find an accountant (luckily) because the first guy couldn’t care less and I wouldn’t have known that if I hadn’t met him face to face.
With regards to property managers, here are a few questions I would ask them before signing up:
1 How many properties does the property manager look after? If is more than 100 then you would really think that the service they provide may be limited.
2 Ask them how many vacant properties they have on their books.
3 Get a reference from one of their clients who has a tenant in place and a reference from a client who has a current vacancy. This will give you a good guide to the property manager’s performance.
I would also look out for the personality of the manager. If you get a bad vibe, it may be advisable to go to the next manager even if there fees were cheaper because apparently a good vibe from the managers is always good and you have fewer problems. Can’t back this one up, although I’m sure others will be able to clarify.
Good luck and happy investing!
P.S. I also found it really helpful to set up a spreadsheet to compare the fees and charges of local property managers. I got them all to either post or email me the info and then compiled the data. For me, it was easier to compare their prices on one page. I also went for a local PM because we only have the one property and they have local knowledge of when rents should increase as well as easy access for inspections/issues and to organise local tradies, should the need arise.
Hi there
When scouting around for a good PM it pays to ask the right questions. I did an article on this over at http://www.invested.com.au if you want to take a look. Just look under Articles and you’ll find it.As far as buyers agents go, make sure whoever you use is licensed appropriately and has had investment experience themselves. Check out BA’s on http://www.realestate.com.au for a comprehensive list in the state you want to buy in.
Good luck!
Cheers,
Jacque
http://www.housesearchaustralia.com.au
Totally Independent Buyers Agents- Sydneyhttp://www.invested.com.au Australia’s premier Investor Education site
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