Finding Deals with Property Managers

[Quick Learner]

A resource that I have not yet utilised in my DD process is picking the braings of property managers. I read about people using them extensively to locate and research their deals. I was just wondering if anyone could add to my list of things that can be found out from the property managers in an area of interest. I have already thought of the following:


What range of rental can typically be acquired in the area?

What are renters in the area looking for in a property?

What additions to a property are renters prepared to pay more for?

What is the current rental demand in the area like?

Anything that you guys can add will only aid us all in our due diligence.

Regards,
Jarrad

 

[The Y-man]

A resource that I have not yet utilised in my DD process is picking the braings of property managers. I read about people using them extensively to locate and research their deals. I was just wondering if anyone could add to my list of things that can be found out from the property managers in an area of interest. I have already thought of the following:


What range of rental can typically be acquired in the area?

What are renters in the area looking for in a property?

What additions to a property are renters prepared to pay more for?

What is the current rental demand in the area like?

Anything that you guys can add will only aid us all in our due diligence.

Regards,
Jarrad

Hi Jarrad,

Many times we have not actually asked these questions directly, but instead walked in as potential renters. This way, you get to see what is on offer (for what price), the vacancies (are they advertising it vacant or has it still got the previous tenants in it? How long does the ad stay up? Is available next month, or did it become available 3 months ago?), method of payment, office hours, whether landlords are negotiable on rent, offering rent-free periods, or accepting short leases.

Cheers,

The Y-man

 

[Quick Learner]

Hi Y-man,
I have done this as well, and found it to be useful even if the property is being rentered by the landlord. Last week I ended up picking a landlords brain for a good hour because he got onto the subject of investing, it turned out he had 6 properties around the area.

If I was to ring a PM and ask them these questions that I mentioned in my original post, how do you find out the PM that operate in the area besides ringing up those managers that have an add in the paper for that week. I have just been looking through the yellow pages but no groups mention what areas they are specific to??

 

[Twitch]

I've done this a couple of times. I find out PM contacts through www.realestate.com.au in the rental section. I'm upfront with the PMs and find they usually give me 5 mintues before getting edgy, they're very busy people as you know. I ask "do you look after properties in <<suburb>>", "what rents easily?", "how much?" "when are the easy/hard times of the year to find tennants", "how many properties do you look after", "how many are vacant", "what fees do you charge".

Those simple questions, asked to a handful of PMs in the area, are going to give you a great idea on what to look for in an IP and what the holding costs will be.

Good luck!

 

[Quick Learner]

That one tip on how to find the agents in a suburb is gold!!!

I use the website already to check out rentals and to find property for sale, but I never saw the Real Estate agents search. This is not only going to help my due diligence but also enable me to reach out to every agent in the area to get working on my team.

Thanx mdk92,

Jarrad

 

[Michael Yardney]

One of the benefits of having ONE good property manager looking after all your investments is that you become an important client to them.

One of the best deeds they can do for you is assess any new investment your are looking at for you. Don't go to the PM from the agency who is selling the property. They will give you a biased view.

Use your PM to give an indication of the rent and more importantly the rentability of the property. Is this what tenants want? What is the rental demand in this area? What are vacancies like here etc?

[snip]

 

[scouse]

I've often run a potential buys past my PM. Both of them have been very helpful.
I have asked for them to let me know about properties on the market or potential market but on each occasion they haven't met my(our-wife included) buying criteria.

 

[Quick Learner]

Talking to people is great

Talking to PM is great, I spent 20mins on the phone to a PM in my area talking about all the things I mentioned with a few of Michaels questions thrown in to change the focus to their RE offices role in the suburb. I learnt so much, more then any website or paper can tell you about an area.

I then thought that since I had the RE office on the line I may as well ask to speak to someone regarding buying in the area. I then had a great chat with another RE agent, laying out my investment criteria and having a good talk about the suburb. I asked her to keep me informed if anything crops up that fits my investment criteria.

It was only a few hours later but she rings me up and tells me that she was doing a call to a client about the Property management of their property and the landlord is very motivated to sell. She wanted to let me know before that formally listed the property to see if I wanted to make an offer.

Now tomorrow I will call and do this with every RE agency that operates in the area.

Thanx guys/gals

Jarrad