Forum Replies Created
Once the right to exercise the power of sale has been declared/enacted there is a duty to obtain the best possible sale result for the property.
I've seen this situation many times and it never happens. Hope its different for you.
There maybe some recourse though if a bank at this point knowingly allows the property to be sold under market value (they would need to release the mortgage). Their actions would have influenced the process of the sale and the seller would not be obtain fair market value for the property.
It's highly unlikely that the bank wont take the normal course of action and seek to obtain market value for the property via sale at public auction.
Nigel Kibel wrote:Anyone selling properties full stop must eithert have a full license or work under a licensed agent. While I commend any education especially when it invoves ignorant real estate agents it is highly unlikely that ASIC will control investment properties as real estate comes under state control while ASIC is a Federal body.Very good point. So why don't we have one system for all agents in every state and territory in Australia. What a great idea.
It's coming!
Ok, i wasn't go to bring hard core figures into it but anyways.
Industry standard is about 110 – 130 properties per property manager. About 4 property managers for 500 rent roll.
Then if we're talking service there would be a need for a receptionist/property assistant full-time in the office too.
That's min 5 full time employees.
Going rate in Qld for properties managers (just gone up in September) $670.00 per week so you're looking at around $13000 a month including your assistant and plus super of say $1170. $14170 a month of wages + on-costs and employee expenses such as travel allowances.
Then add your premises expenses, electricity, telephone, insurances………lucky if you're making a few thousand a month.
Sell 1 house your average commission in Brisbane is $10,000+. That's one sale, not 500 owners & 1000+ tenants
Sorry.
That $299 is not just line establishment.
The physical installation is around $240 the remainder would be for the line connection which the tenant should pay for. You should be up for $240 odd only.
The physical line stays with the property. Tenant can't take it with them.
Some would consider that its a basic right to have a phone connection in a rental property.
Normal practice is that the owner pays in my experience.
Yeah I hear what you are saying. At around 4000 properties its start to be worth getting out of bed for.
Best of luck with the new venture.
Renee Rivkin – might give that advice a miss.
You get what you pay for.
Seems a pretty good variety of deals posted here.
Industry rates generally start out at around 5.5% – 8.8% in the great south east.
Some agents are offering loss leader deals 0% for the first X number of months.
Look at the end of the day agents make very little out of managing properties. Many of them are swearing off rent rolls because the detract from they more profitable engine of sales and can be quite damaging to reputations.
There is no money in managing rentals. The money is obviously in developing relationships with potential sellers.
So, see what happens if you elude that you might sell the property sometime in the future and you're looking for a good managing and future sales agent. Great way to guarantee you get fantastic service.
The most important question to ask a property manager is "Do you own an investment property?".
Median weekly rents for a three bedroom house in Rothwell (approx 25kms north of Brisbane) last year $260 this year $300
Subscribers of some forms of residential real estate information might recognise Rothwell as being at the top a recent list of best areas for rental returns in Brisbane.
A very good post above.
This is very true its surprising what tenants will do if they know a buyer is an investor and a potential new landlord. Once the logic is explained that the tenant should do there very best to impress the potential purchasers they can perform wonders.
With a little more background regarding the issue with the managing agents its reasonable that the tenant may have been influenced.
On the flip side is a property better off vacant when its for sale. I'm my recent experience the answer is no. Investors seem (is this true) to be assured by having a tenant in place and a justified rental income.
An agents estimate of potential rental returns sometimes holds little creditability and when compared with an existing tenant paying a reasonable rent the latter seems to be prefered.
What state is the property located in?
Seems to be a lot of verbal agreements taking place.
Step 1 give the tenant notice that the property is on the market for sale preferably on the approved form.
Provide the appropriate notices of entry and provide the required period of notice on the approved forms.
In most states tenants are required to allow reasonable buyer access with 24 hours notice.
In some states tenants have the right to obtain in advance the details of all persons entering the premises for an inspection. Makes holding an open house a bit difficult.
Speak to the residential tenancies board in your state they are there for owners/investors too.
If this is such a comon strategy used by the banks, whats the comon solution and why aren't the banks out there in the market chasing stand-alone converters? Interesting situation to be in shifting your business from a big bank.
100% agree email is the best form of communication with today's PMs and request a read receipt
Interesting yes. Its perhaps a little dicey to be too opinionated at this stage.
Stella1258 wrote:Going by the comments above, we maybe should have put them on a 6mth lease & readjusted the rent every 6 mths? Our thought was get someone in, give them & us some stability & see what happens in 12mths – is this also not a reasonable way to go?Regardless of the market circumstances starting off with a 6 months lease (new tenant) gives you the opportunity to test the tenant out. Then offering a further term of 12 months is quite reasonable if you are factoring market conditions.
Looking at it from the tenants perspective providing them with the security and stability is worthy of factoring a premium on a 12 month lease of say $10.00.
At the end of the day a vacant property can be very costly indeed. Who wants to be losing $270 a week holding out for an increase of $5 per week with a new tenant. Say the property is vacant for three weeks -$810.
Pegging increases to the CPI +% in some fashion might be prove a good rule of thumb for some. Finding out the market information in the form of median rents for an area is a pretty good reference point too. Is your property managering refering to this sort of market data when making recomendations about increasing your rent.
REI in some states provides this information and is also available FREE from Residential Tenancy bodies too.
millions wrote:Crashy, in future sign 4 wk contracts only. If they say they only do 3 mth contracts say tough i only want to sign for a month. If Bris is running hot and properties are selling in 1 week why would you sign for any longer? That will get them working!!! Linda60 days max in QLD for appointing an agent.
v8ghia wrote:Rent can be increased during the lease if needed, but only when it can be established the market rent is above this.
Yeah, in which state can you alert of fixed term agreement? Unless there is an extraordinary clause in the lease.
For the past 18months I've only been offering 6month leases and renewals and i've increased rents by $5-15 at each interval. My rents have increase 15-35% in the past 18 months.
CPI (2-3%) increases what about the real world and the market.
Noting though that my I areas have been among the top performing in the country for rental returns.
WA well as we would all be aware the WA residential market is pretty poor for returns anyways. Investing for growth or returns.
Wouldn't it be interesting to hear your explanation as to why you hired that agent.
Why you didn't seek to terminate the agreement (if any) when the agents performance didn't meet your expectations.
There are plenty of agents out there to choose from.
Don't be impressed by titles and claims to fame get a list of the agents last 10 sales. Contact the clients and ask them first hand how the sale went. If the agent struggles in any respect to provide you with the list don't employ them.
It's an employment relationship, you interview, you hire and if they don't perform like an employer you've got to consider how did you contribute to that situation occurring. And, you sack them and hire someone else who can get the job done.
Sorry its a tough line to take, but just sack them and move on. The "I hired a dud agent" line reflects more poorly on the seller then the agent , trully, really and simply.
But, finally if you have a really valid beef with an agent you could always ask them if they are members of the state based REI and make contact with them for further consumer advices. That an important interview question to ask "Are you a member of the REI". Mediation services are on offer, you would have to think about needing to go down this path to have fully sort a remedy/mitigation prior to going to court.
Maybe you could hire yourself to sell the property, you seem to be pretty clued in to what needs to happen. Save yourself $10,000 or more and DIY.
Final point, when selling always get a min of 3 agents to appraise/interview for the job of selling your property.
What about the obscure possibility that if the land adjoins your principal place of residence.
May not apply to this particular situation but worth canvasing in this post.
I agree in part with the above its always important to set out with a good strategy.
If you look back through some recent posts you'll find some pretty healthy debate about whats happening in the Northside Market. A lot of talk seems to still centre on Redcliffe and the surrounding area.
https://www.propertyinvesting.com/forums/property-investing/general-property/4321649
What are you trying to achieve through investing approach. Start with answering this basic questions and the rest will follow.
There are areas of good capital growth on the Northside and there are areas of higher returns with limited growth.
Investing whats in it for you?
