Cost of Renting out House - Self Managed

[sashatheman]

I was hoping someone can give me an estimate on how much it is expected to cost to rent out our house through a real estate agency, but then manage it ourselves. So we basically want the agent to advertise for us and find the suitable tenants, write up the contract and then we take over.

Also a follow-up question. Do people get several agents to come in and estimate how much they can rent the place out for, and then you choose the agent you like the most?

We are located in Western Sydney, if that helps with the numbers.


Thanks in advance.

 

[Scott No Mates]

Sasha,

most agencies will charge you 2 weeks letting fee, lease preparation costs, advertising for a sundry letting.

It will cost you less if you give the agency the responsibility for the management (they may wear the advertising or part of the letting fee).

 

[SeafordSunshine]

Follow up Questions!

Definitely ask a couple of agents!

Some agents a fabulous, and really efficient, check a few out, ask about the market, how many enquiries for the type of property you are likely to have, is there competition among tenants, what can you do to make your property more desirable?
How long should it take to rent out, How long should the lease be, What kind of tenants would it suit?

A zillion questions!
Ask about advertising, how do they check the tenants?


Also perhaps as a new landlord, have you thought about Landlord's insurance?

could save you ?
I hope this helps

 

[jenni_nextplace]

A lot of agents won't find a tenant for you.

Keep in mind though that the agent will be acting in their best interest, meaning they will want to:

a. find a tenant for the property as quickly as they can, without too much concern on who will be moving in.
b. They will rent their own managed properties to great tenants first and your property will get the seconds.

I am not trying to be nasty to an agent but its the reality. They are left with the aftermath of the tenants they put into properties. When they are finding a tenant for you. You are left with the aftermath so its not as high a concern for them.

 

[Jacque]

Why not manage the process from the start?
Get a lease pack from your local PO or online and ensure you have relevant details to make a decision on tenant enquiries. I'd read something like this to ensure you are familiar with everything first up

http://www.rent.com.au/articles/managing-your-rental-property

 

[Lil Skater]

You are left with the aftermath so its not as high a concern for them.

I don't know what other agents do, but my reputation and the fact that the property may come back to me one day is worth putting in the same effort for a self manager and my day to day landlords.

Sasha, make sure you speak to a few agents and try to weed out the poor ones and keep in mind, most, if not all, will charge a premium for this service.

 

[Scott No Mates]

Get a lease pack from your local PO or online and ensure you have relevant details to make a decision on tenant enquiries. I'd read something like this to ensure you are familiar with everything first up

http://www.rent.com.au/articles/managing-your-rental-property

Everything you need is freely available from the fairtrading.nsw.gov.au website but you will need to read up about your obligations.

 

[wylie]

A lot of agents won't find a tenant for you.

We found it hard to get a property manage to do a "let only" in the early days, less so now. Perhaps they need the money more lately.

Keep in mind though that the agent will be acting in their best interest, meaning they will want to:

a. find a tenant for the property as quickly as they can, without too much concern on who will be moving in.
b. They will rent their own managed properties to great tenants first and your property will get the seconds.

I am not trying to be nasty to an agent but its the reality. They are left with the aftermath of the tenants they put into properties. When they are finding a tenant for you. You are left with the aftermath so its not as high a concern for them.

The first time (20 years ago) we paid an agent to find us a tenant, they installed a couple, seemingly nice enough young man but his partner was an an ex-hooker who had been to prison for stabbing someone. That was the last time we tried that for many years.

I don't know what other agents do, but my reputation and the fact that the property may come back to me one day is worth putting in the same effort for a self manager and my day to day landlords.

Sasha, make sure you speak to a few agents and try to weed out the poor ones and keep in mind, most, if not all, will charge a premium for this service.

Over the past five years or thereabouts, we found a property manager who was happy to do a "let only" and the tenants he found were checked thoroughly and he put as much care into finding a good tenant as if he was going to manage it.

It has been even easier the past few years as our son was in the industry, so he took over the finding of a tenant.

I think, like all things, you get good and bad in everything.

But I would agree that if you are going to pay a tenant one or two weeks' rent plus GST, plus advertising, you might as well have them continue to manage it, at least until you are sure the tenant is a "keeper".

 

[sashatheman]

Good advise everyone. I think we might look for a good Real Estate agent and let them manage from the begining, and then perhaps take over at some point.

BTW we already have an IP that we self manage. However that situation is different because when we bought it the tenant was already there and is staying on.