LF: Property Manager -Hunters Hill

[ferdinandch]

Guys

I just bought an IP in Hunters Hill and want it to get managed. As it is my first IP, I am pretty much an amateur. My first priority would be the REA whom I bought the property from, as they know the property exactly. However I am looking for options. What I need to be aware of? And any recommendation I can get?

Cheers

 

[mumbai]

Guys

I just bought an IP in Hunters Hill and want it to get managed.

Congratulations!

As it is my first IP, I am pretty much an amateur.

Keep reading and asking right questions on this forum and you will soon be 'learned'

My first priority would be the REA whom I bought the property from, as they know the property exactly. However I am looking for options.

The REA you bought the property will only know enough to sell the property. You dealt with the sales guys who will paint a pretty picture always. If you sign up with them, you will then meet a Property Manager, who 'may not' know the property as well.
But, it does not matter how much the PM knows about your IP. They only need to know how much rent you property is worth getting, how they can keep getting it for you, how they can find good tenants and how to deal with them on day to day basis.

What I need to be aware of? And any recommendation I can get?
Cheers

When I bought my first IP, I was asked by SSers to ask these questions of the PM:

- number of inspections per year
- Are the inspections photographed?
- What experience does the PM in her field?
- How long they have been with REA?
- What are their arrears policy?
- If need be, check the list of contractors they use and their rates (if you have something to compare)?

 

[ferdinandch]

Thanks Raj

How about determining the rental price? I asked this before to the selling agent based on the pre-sale rental appraisal, and it is 10% lower (in my opinion and based on some research). I am aware this might lift some pressures for the REA or the property manager to achieve high rental price. How to agree on achievable rental price with the PM?

 

[mumbai]

Check the comparables. I am sure there will be plenty in the area to compare with. You can come up with a figure you think is appropriate.

If its a unit, check the rents charged on the other similar units in the building. If your property is better or worse then the one you compared, you can lower or increase it.

The PM, if they are good, can tell you a range (within 5-10 dollars pw) of rental achievable.
Based on these information, you should be able to come to a agreement on the rent.

 

[ferdinandch]

Check the comparables. I am sure there will be plenty in the area to compare with. You can come up with a figure you think is appropriate.

If its a unit, check the rents charged on the other similar units in the building. If your property is better or worse then the one you compared, you can lower or increase it.

The PM, if they are good, can tell you a range (within 5-10 dollars pw) of rental achievable.
Based on these information, you should be able to come to a agreement on the rent.

Raj, I think it is the best to compare 3-4 PM and see whether they are realistic and whether they really work for the best interest of us in term of achieving best rental result, don't you think?

I am planning to advertise by myself first through Gumtree and other websites, what will happen if I am the one who find the tenant? Should I still surrender the first week rental fee to the property agent? Unclear about this. Today is 2 weeks before settlement.

 

[mumbai]

You should definitely check with couple of PMs. You will also need to know their fee and charges as well.

I guess, you will save the first weeks rent if you get the tenant yourself via gumtree, etc. However, I would suggest you otherwise. A good PM would have access to a tenancy database to check the tenant's rental history.
A week's rent is a small amount to pay to avoid any major issues with getting a 'bad' tenant via gumtree.

 

[ferdinandch]

You should definitely check with couple of PMs. You will also need to know their fee and charges as well.

I guess, you will save the first weeks rent if you get the tenant yourself via gumtree, etc. However, I would suggest you otherwise. A good PM would have access to a tenancy database to check the tenant's rental history.
A week's rent is a small amount to pay to avoid any major issues with getting a 'bad' tenant via gumtree.

About the fee, it is 5.5% +GST, what is your opinion? I heard it is pretty standard.

As for using PM, from the day of settlement, what is the most reasonable timeframe for tenant to start to inspect, sign contract and pay?

 

[mumbai]

About the fee, it is 5.5% +GST, what is your opinion? I heard it is pretty standard.

As for using PM, from the day of settlement, what is the most reasonable timeframe for tenant to start to inspect, sign contract and pay?

5.5% is good.
If there is no work to be done on the property, you can start conducting open home the day after your settlement and start renting the same day or next!
Nothings stopping you

How much time you will realistically take to rent it out will depend on various factors like advertised rent, vacancy rate, open home timings, etc