Hi,
We bought our 1st investment prop in Qld October last year. We made the selling agent as the prop manager as well. The unit was fully furnished and normally attracts students (as it is close to universities) and overseas migrating families. The last tenants left last June (the lease is supposed to finish by 5/09/12) and the townhouse has been vacant eversince. The agent says he is having a hard time getting tenants (ironic as he told us this is a high demand area and almost zero vacancy rate). The furniture is also a problem as it limits the kind of tenant the townhouse is attracting He said the old tenant will be paying until we get a new one so the rent is actually covered until 5/9/12. Now, we are getting quite worried since the agent has not found a tenant yet (since late June). There is an on site manager in the complex who wrote us and asking us to try them. They charge much higher though (8% + GST+ 40/month admin fee) . Do you think we should change agents ASAP? Also, if we do, any tips on how to negotiate on the fees. Appreciate anyone's thoughts and advise on this please.
Thanks,
Liza
Hi Liza,
You can change agents. A lot of people feel stuck with an agent, but remember it's your property and your money, so your choice on agent.
How many opens has the current agent held, how many times have you spoken to the agent in the last couple months?
It's important that the agent knows you, and they know you mean business. I'm on a first name, 'get a call in the first 5 mins of a problem' basis with all my agents. They know I mean business, they know if something is going wrong to make contact asap.
It's important to have a good working relationship with your agent and that they don't just blow you off with excuses. They need to be actively working for you.
Also with regard to the fees, they are negotiable, if you want to change but feel the fees are too expensive definitely negotiate. Ask what service you will get for the higher price, tell them what fees other agents in the area are charging, tell them the fee you would be willing to pay.. etc
As far as the furniture goes, ring 3 agents in the area and ask them what sort of rent the property would attract with furniture and without. If the furniture is limiting your rental potential, sell it on Ebay.
Good luck, let us know how you go
D
DWolfe | www.homestagers.com.au
http://www.homestagers.com.au
Email MeExcellent advice from DWolfe above.
It's no surprise that the selling agent told you that there would be plenty of rental demand for the property – they wanted to sell you the property.
I'd also have a chat with the onsite management team – ask them what their experience has been like with furnished properties and whether they have any demand at present for the properties.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
I absolutely agree with DWolfe's advice. Work smarter, not harder. If by changing agents you can save considerable money and time in the future, the difference or increase in price may be worth it. Perhaps the services included with their prices will work to your advantage. However, still have a go at negotiating with the new agent. You never know unless you try.
Good luck!
I dont hang with fools for sentiment.
I've had friends of the family who I've chucked off jobs because they dont know how to do the jobs.
Since the only real relationship you have with the agent is the fact you used him to purchase the property .. you are pushing uphill to get a tenancy with someone who may not be doing the best for your property in the first place.
Its your property … if you dont get a tenant .. the agent doesnt care .. he's got a folio of anything up to 100+ properties he will be managing.
Shop around … dont go for one decision .. make it an interview like you would for a job. Because it IS a job .. its a job that you need done professionallly and done right .. and you need to have good people on your team to supplement your success.
Good fixit men (carpenters, tilers, plumbers) and good managing agencies (body corp and property management).
On the same note .. do NOT abandon the property manager until you have a better one. In smaller towns .. there is the good .. the bad .. and the ugly. And there may just be the ugly and the bad. Be careful. What looks like poor service can be outdone by worse.
And always part on good terms. If the other agent doesnt work out .. you dont want a property manager that wont take you back because of a temper tantrum.
$40 per month admin fee is through the roof, i would switch
I absolutely demand that if I have a rental that is to be offered for rent, it be on http://www.realestate.com.au/rent right away, with pictures, and that there be open for inspections twice weekly – once on a Saturday and once on a weeknight at a timeslot people can actually attend (ie 5pm or later). I have no patience for agents that open property once a week at stupid times when prospective tenants are all at work (eg 2pm Wednesday). Further, I have no patience for them not bothering to put it on the internet till the last minute such that hardly anyone knows about the open.
Is your property advertised on the internet? If so, how many other similar properties in the area are available for rent, and for how much per week? Are the open for inspection times advertised within the ad on http://www.realestate.com.au/rent ?
If the agent is not doing all this, then ditch them.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
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