Check the numbers yourself

[TheBacon]

I was chatting to one of the junior PM's that looks after my IP and mentioned that as we'd just finished a big reno we would like a reappraisal of the rent. Tenants are due to finish lease in May, and know that the rent will rise after that.

Well, after about $20k of reno (new kitchen and bathroom), the agent says, "Oh yeah, should be able to get an extra $20/wk now, I'll check with the other PM and get back to you". (from $300/wk to $320/wk for a 3br house - admittedly on a small block - in Mt Lawley / Highgate area, WA).

LOL - the rent would go up at least $20/wk without a reno. It's amazing that someone working in realestate could be so unaware of the state of the market. From our own research online and looking in the papers the missus and I know that comparable properties rent for $350-400/wk, with most that are similar to ours around the $370-380 mark. There are always more expensive and cheaper ones, but $370-$380 seems conservatively on the mark.

Luckily for the agency I am currently with the PM called back. After speaking to the senior PM the estimate was now $380 - $400/wk. A bit higher than my estimate, but still within the range of what we've seen. I wonder if the junior PM does anything more than rental inspections and answering the phone? She was completely off target. If I'd have taken her word that $320 was right it would have cost me over $3000 in rental income over the year (minus r/e fees of course).

So - to get to the point - do your own research, dont just take the agents off-the-cuff words as accurate.

Good luck all

TB

 

[thedon]

Hi

Yes good point. The 2 PM's that I use both seem to need a bit of encouragement. I think they just want the easy way out and not have to work hard for their commission!

I always do the research and tell them what minimum I want.

Don

 

[softmonkey]

had a REA tell me once "after carefully reviewing our existing rent roll and market demand, $220/wk" ... I did it myself, got $275/wk and saved the pm fee to boot! $3700 savings in the first year alone.

the tragic thing is, she was probably trying to be fair and realistic!

 

[TheBacon]

the tragic thing is, she was probably trying to be fair and realistic!

Fair to whom? In my mind the agent is there to manage my property in such a manner as to make me the most return on my investment. However this is not always my experience...

I'm not sure how, but I seem to get the rough end of the pineapple from agents irrespective of whether I am a tenant or landlord.

When Tenant - oh, sir you wont find anything under $500/wk in this area.
or - You've left 2 flies on the window sill, $500 will come out of your bond for cleaning...

When landlord - oh no - you'll never get THAT MUCH for your property.
Dead grass, filthy rooms, carpet needs replacing? Oh, no, sir thats fair wear and tear, couldnt possibly take that from the bond...

LOL - the big picture keeps me sane, the small stuff drives me crazy

TB

 

[skater]

Fair to whom? In my mind the agent is there to manage my property in such a manner as to make me the most return on my investment. However this is not always my experience...

You did say that it was the Junior PM you were talking to. LOL this is why I try to only deal with the senior PM with all the R/E I deal with. Some of the Juniors try hard, but they are still in the learning stage, & as such are hardly reliable.

 

[jaycee]

Hmm.. I get a PM appointed by the company, I don’t geet to choose the PM. And each PM has had to have gentle reminders from me on anything except for payng the rent to me on time or paying agreed bills / minor repairs (not many)… Anything lelse, like lease / rent reviews, have only once been suggested proactively and that was due to a change of staff. So I have no idea if they are junior / senioor, they are simply my PM.

Even with strata mangers - in the PPOR complex I l;ive in, we changed to another company due to bad service (again, all they did paperwork - collect fees & pay bills). The new strata manger sold us on ther "professionalism" but has done and anything they have done has just been for show like "I have a gardener who has quoted $xx (decent / good price) to do this that & the other, a vast improvement on what was organised previously *putting down the previous Strata Manger/company) blah blah blah". When months have gone by with no visible changes to the gardening mess they promsied to make "unreocgnisable", we receive a copy of an email forom said gardenr praising himself & suggesting 1 or 2 things also. I emai l the manger back explain the garden looks the same, it is still overgrown & full lof dying plants & weeds.. The weeds & grow out of the garden into the pathways… low & high hanging branches & trees grow into thr path & you have to duck to not lose an eye walking past them, the gardens looks the same, there is still rubbish in the carpark etc etc.. They may need a gentle push in the right direction, they are working when here, just not doing a gopod enough job… So she emails me back & tells me that she forwarded my email to them -nice & easy way out, keeps her in the clear & now I'm the one who is whinging !

It semems that the busier they are (or say they are "the market is so busy"), the less they do.. Seems like we have to manage the manager….