We recently had 4 agents assess one of our more recent acquisitions for rental with a view to engaging an agent to manage it.
The home is a large 5br, study, rumpus, etc, etc that we were spending around 20k upgrading in outer Melb suburb. We were looking to rent for at least $250pw.
Of the 4 agents; 2 said most we’d get for rent would be $240pw, 1 said she’d have real problems renting it out and if successful we’d probably only get $220pw. The 3rd didn’t want to touch it as she wouldn’t be able to get tenants.
Not happy with responses we decided we’d take a punt and advertise in local papers ourselves @ $260pw. After showing 4 applicant families thru the home (3 wanting to rent it) we chose the successful tenant @ $260pw – no argument (and then had to turn away another 3 applicants).
We now manage it ourselves saving on management fees and collect rent $20-40pw higher than “quoted”.
Our suggestion would be – don’t necessarily take what agents say as gospel.
Ray
To begin and not succeed is not to fail
To never try is to failGreat advice Ray. Just goes to show that agents are not always acting in your interest. I had a bad experience with an agent today so reading your story doesn’t suprise me at all.
Sounds like you ended up with a great deal – no agent fees at all and more rent than any of them thought they could get! Good job.
Originally posted by learay:We recently had 4 agents assess one of our more recent acquisitions for rental with a view to engaging an agent to manage it.
The home is a large 5br, study, rumpus, etc, etc that we were spending around 20k upgrading in outer Melb suburb. We were looking to rent for at least $250pw.
Of the 4 agents; 2 said most we’d get for rent would be $240pw, 1 said she’d have real problems renting it out and if successful we’d probably only get $220pw. The 3rd didn’t want to touch it as she wouldn’t be able to get tenants.
Not happy with responses we decided we’d take a punt and advertise in local papers ourselves @ $260pw. After showing 4 applicant families thru the home (3 wanting to rent it) we chose the successful tenant @ $260pw – no argument (and then had to turn away another 3 applicants).
We now manage it ourselves saving on management fees and collect rent $20-40pw higher than “quoted”.
Our suggestion would be – don’t necessarily take what agents say as gospel.
Ray
To begin and not succeed is not to fail
To never try is to failNice work !
Hopefully by selecting the tenants yourself, you’ve picked people that will look after the place and pay the rent promptly.
What sort of checks did you do on the new tenants?
Cheers
SimonMore stuff on the voigtstr at http://users.bigpond.net.au/voigtstr
learay
we have ALWAYS have this problem and the reason why none of our properties are with agents is this exact reason.
I had an agent tell me that the market rent for one of our properties is $180/week based on its purchase price of $180,000, we rented it for $340 per week.
I lost alot of money in rent using agents at the begining, but I now can make alot more money not having them!!!!
We buy properties in Adelaide. Immediate Cash Settlements, No Real Estate Agents, No Fees.
[email protected]
phone 0412 437 582Thanks for your reassuring comments.
All applicants for the property had to complete Tenant Application forms and we checked employment, rental and personal references (of course all references were considered with some level of scepticism as, unfortunately, too often they don’t always tell you the whole truth!). In addition, as all applicants were currently living relatively local, we drove by their current residences to see how they were maintained outside – on the basis that outside presentation can be a reflection of how the tenant looks after the inside of the property and can reflect some of their character.
Ray
To begin and not succeed is not to fail
To never try is to failHopefully no one is under the impression that REA’s and PM’s actually tell you truth and have your best interests at heart, despite all of the brochures saying they are true professionals and their quasi allegiance to the Ethical code of conduct. I say quasi because there is absolutely no allegiance at all to the code…once again despite all of the brochures saying they are true professionals.
Anyone who is remotely under the impression that these guys are sharp, but can qualify to be a professional in a week for PM’s, and a couple of weeks for a REA needs their head read.
Once again, massively misaligned goals between you as the investor and them as cash leeches….
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
I’m happy for you that it all worked out for you, Learay, despite the unwilling agents.
I am asking myself, what would be in it for the agent to be so negative about renting out your property- don’t they want your business?
The PMs who are looking after my IP are using a system (I think it’s called the Pilling system) in where the interested tenants make an offer- the amount of rent they are willing to pay for the property, negotiate whether they’ll be paying for water, the lease term, etc. So far I’ve been happy with the results.
The PMs have, both times, been able to find responsible tenants who were offering to pay top rent and one of the tenants actually said she wanted to pay for their own water usage.
There are PMs out there who do a great job as well.
Awww just putting a bandage on your wound, Ausprop![biggrin]
Celivia
dazzle – did someone force u to utilize the services of incompetants or was it your choice?
either way u r a scratchy record.
cheers
brahms
Purveyor of Fine Finances
aka Mortgage Broker BrisbaneEither way you cut it brahms, everyone is forced to “try out” these outstanding professionals…sometimes you fall on your feet and most times you don’t.
Unfortunately, sorting the ‘incompetents’ from the good ones isn’t that easy. It takes time and some events to test how good they are. Unfortunately the bad ones don’t have a notice swinging above their door highlighting the fact…hence my previous brochure comment. If you have dream tenants, your PM is never tested…
No one ever forces any free person in Australia to do anything…as you well know – that comment added nothing. What I can tell you is that I didn’t put up with the c*ap service. I’m sure you could enlighten us with your tales, instead of ridiculing me…howza ’bout it ??
Rather than attacking me, do you have anything constructive to add to the thread ?? Do you even have a record to play ??
Give me scratchy every time….what’s the saying ?? Find a profitable niche and repeat it over and over and over again and success will be yours ??
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
Ouch again !!
kp
You must be logged in to reply to this topic. If you don't have an account, you can register here.
