rental management

[burbonbill]

i am thinking of manageing a property for a fee and would like to find out if i have to be regesterd rental manager and if so what are the steps i would have to take. i manage two of my own property but dont know whats whats with other peoples thanks burbonbill :cool:

[Jacque]

You don't need to be registered but you do need to follow the guidelines and, for your own peace of mind, would be wise to draw up a legal lease and lodge the bond etc the right way. Simply buy a Residential Lease Pack from your local NSW newsagency or Post Office and Bob's your uncle :)

[duncan_m]

You don't need to be registered but you do need to follow the guidelines and, for your own peace of mind, would be wise to draw up a legal lease and lodge the bond etc the right way. Simply buy a Residential Lease Pack from your local NSW newsagency or Post Office and Bob's your uncle :)


Jacque.. are you sure? Burbon wants to manage someone elses property.. not his own. Most states have requirements that need to be met?

[Jacque]

Jacque.. are you sure? Burbon wants to manage someone elses property.. not his own. Most states have requirements that need to be met?

Of course you're right! I misread the post in my haste to answer it and eat my brekky, Dunc :)
Sorry about that, Burbon. I would imagine there would be restrictions, depending on what state you're in, though there's probably nothing to stop you from doing the "paperwork" for your friend and being reimbursed in kind- perhaps a gift voucher every now and again for services rendered?
Has anyone else done this on behalf of a colleague or friend?

[JoannaK]

If you intend on collecting a fee for the management then you are required to be a licenced agent. You can call the REI to find out how to become licenced. In my days it was a 3 year part time course but I believe there are shorter courses on offer now.

You'll also be required to set up a trust account and prepare monthly statements/reports to your clients along with their rent at the end of every month.

It's much easier for your friend to go and engage an experienced and competant property manager who does know what's what when it comes to managing properties. It's much more than just collecting rents every week and a tonne of legislation that you need to be aware of.

hope this helps.

[crest133]

You can ask the Dept of Fair Trading who issue the licences to those managing properties for others, they will have limits relative to the applicable legislation.
cheers
crest133

[Michael Yardney]

As has already been explained you need to have a "full" real estate agents license to manage someone else's property (not an agent's reps license.)

And you need a trust account and should have professional indemnity insurance.

If you already manage your own properties you would know that there is a lot more to it than just collecting rents.

Its not such a great business to be in - I've heard it called a continuous conveyer belt of complaints.

And it is not a highly profitable business. I know, we own Metropole Property Management (http://www.rentingmelbourne.com.au ) To do the right thing by your clients and provide great service is an expensive excercise.

[The Y-man]

As has already been explained you need to have a "full" real estate agents license to manage someone else's property (not an agent's reps license.)

And you need a trust account and should have professional indemnity insurance.

If you already manage your own properties you would know that there is a lot more to it than just collecting rents.

Its not such a great business to be in - I've heard it called a continuous conveyer belt of complaints.

And it is not a highly profitable business. I know, we own Metropole Property Management (http://www.rentingmelbourne.com.au ) To do the right thing by your clients and provide great service is an expensive excercise.


Actually, my wife made a comment while we were dropping off christmas gifts to our Managers - it suddenly occured to her that the Property Manager's job must be a relatively thankless one, as you would cop complaints from both ends - owners and tenants.

Cheers,

The Y-man

[The Y-man]

And it is not a highly profitable business. I know, we own Metropole Property Management (http://www.rentingmelbourne.com.au ) To do the right thing by your clients and provide great service is an expensive excercise.

Hi Michael,

Just slightly off topic - whilst the actual p&l might not look crash hot, I assume that the valuation of the business would be a multiple of the number and value of accounts managed?

Cheers,

The Y-man

[Michael Yardney]

Hi Michael,

Just slightly off topic - whilst the actual p&l might not look crash hot, I assume that the valuation of the business would be a multiple of the number and value of accounts managed?

Cheers,

The Y-man

Correct

Like other businesses with recurring income, you can sell them for a multiple of their income.

Most agents like rent rolls because it gives them properties to sell - easy listings.

Once or twice a week we are approached by a landlord who is considering selling. If we ran a normal estate agency we would encourage a sale.

Instead, depending on the circumsatnces, we suggest holding on for the long term.

[crest133]

I don't have any PM services to sell right now, but I would like to put in a word for good PM's wherever you are. I mean the ones who walk the walk.

PM is tough, demanding, underpaid, stressful, and not surprisingly has high staff turnover.

A PM must have all the knowledge and the answers, a policy for just about everything, lines drawn in the sand, and must accurately assess any situation as it arises, use that knowledge to act immediately and decisively.
Everything they say and do must be legal within the extensive framework of quite a few acts of legislation, and must be in the best interests of the PO firstly, but also secondly the REA - profitability and job security depend on walking this tightrope in a suit with a smile.

It is often the case, but fortunately not always, that the PM occupies an unenviable position between two parties who are both reluctant to part with any money.
Sounds ideal doesn't it ? ;)

So spare a thought for your PM when they are doing a good job for you, because successful good quality professional PM takes a lot of doing.

Hope you all find a good PM when you need one.

cheers
crest133