Hi all
I have bought a property in rural WA (i’m in Sydney) and it is rented out for the next 3 years.
I havent decided whether to get a real estate agent to manage my property (collecting rent and minor repairs i guess and then have them charge me 8%) or do it on my own?
Your opinions are much appreciated
Hi Candy
We bought our first real IP in Queensland when we were living in Sydney. The advantages of a Property Manager are:-
you can get landlord insurance
you get advice and assistance complying with local regulations (we were told about the locks we must have installed for example)
you have someone on the spot looking after your interests.
Another consideration is your own time. Even with one but especially if you intend to grow your portfolio you need to decide whether you are better off looking for good deals or trying to organise a plumber.
Hope this helps
CheersHi Candy,
We’ve had IPs for 25 years and never used a manager. We sometimes pay for landlords insurance, depending on the tenants in place at the time. We look at it each year in relation to the risks. For example, one house rented for two years now, fantastic tenants, no worries for us about them abusing the house – we don’t currently have landlord insurance. If the tenants change, we will review it.
Having said all that, our IPs have always been within a few kilometres of our PPOR. I do know that some (many?) real estate managers don’t do a good job (family member was a REA, I’m not talking without knowledge). I know investors using managers, who still find the tenants haven’t paid rent for four weeks.
Many used to (don’t know if they do still) just hand out keys to prospective lessees. Many don’t even take the prospective tenant through the house.
Personally, I wouldn’t waste my money using a manager, especially one who is slack. On several occasions over the years, we have used agents to find us tenants in exchange for a week’s rent. Almost every time, we have then found our own tenant, and usually do not hear anything from the agent.
I do understand that if we were going to give them the ongoing management, they would no doubt do a better job of finding us a tenant, but I cannot understand why they even bother accepting the challenge if they don’t bother.
On one occasion, a REA rental manager found a tenant for us, a prostitute who had done time in prison because she wanted to know what it felt like to stab someone in the neck. Luckily, she left with no problems, but it was a bit scary. Incidentally, she left the house in an immaculate state.
I seem to have rambled on somewhat, but if you can’t screen tenants personally, and if you don’t have any local plumber, sparky contacts etc, I suppose the management looks the best idea. If you can screen them personally and can be contacted to organise maintenance and repairs, I’d give it a go.
Good luck, Wylie.
Hi again, Just re-read your post and realise you are in Sydney, property in WA. Much as I don’t personally use agents, the distance involved would seem to make it a good idea to get an agent. You can’t jump in the car to check the property out if there are problems.
Regards, Wylie
Hi Candy..
is it a GEHA lease?
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorHi Redwing
Yes it is a GEHA lease.
Spoke with the REA and they are offering 7.7% management fee
good deal or bad deal?? I really just need someone to follow up when a repair is necessary.
I am also thinking of negotiating with them to charge me on a per call-out fee (eg. $50 per call when they need to go out for a repair)
Any thoughts
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