My property in Frankston is just about ready to be put on the rental market. I have a family friend in Clayton that own a REA and I'm thinking about giving my business to him given that I trust he look after the property as best as he can. Do you think there'd be any major disadvantages by not having a local agent look after the property?
Local or family friend Real Estate Agent?
- Thread starter The_Bludger
- Start date
Agents thrive on this sort of business it's called their network. If you believe that an out of area agent can service you as well or better than a local, go for it. Better yet discuss it with them, ask them who they would recommend in the area and judge their responses eg: we manage x other properties in the area, we have a lot of enquiries about there or they may even suggest who of their colleagues cover the suburb and do a good job.
Frankston = not a Frankston agent but don't go so far as Clayton. Ask who they might recommend. I live in a property that is managed by an agency quite some distance away and it has impacted us in ways you probably wouldn't think about (I certainly didn't).
For example - the agency is about a 45 min. drive away. That means that all of their trades are further away too as they're based in the same place as most of their properties. The trades then charge more to attend and often don't turn up because why lose that 1.5 hours in travel time when you could knock over a few jobs and get paid for them in that time locally? Then you have tenants who don't have water for 2 days and believe me, they're pretty upset by that!
You also put off tenants from renting if the office is too far away. I do everything electronically so I've only had to go into the office when we initially moved in, however, I have a lot of tenants who still come into the office to visit, pay rent, report maintenance etc. You're reducing your potential tenant pool there.
Lastly - the rental market is area specific. I manage properties far from my office at one landlords insistence, I told them that I would have to speak to other people I know in the area to ensure the rent is at the correct level as I may know my area market really well, I don't know the market in that area as well.
Well, that's my thoughts anyway, I'm sure many people have positive experiences with distant PM's, just weigh up the pros and cons. Also, if the family friend is doing something you're not happy about, are you going to be able to have an open conversation about it without ruining the friendship? Business and friendships often turn sour
.
For example - the agency is about a 45 min. drive away. That means that all of their trades are further away too as they're based in the same place as most of their properties. The trades then charge more to attend and often don't turn up because why lose that 1.5 hours in travel time when you could knock over a few jobs and get paid for them in that time locally? Then you have tenants who don't have water for 2 days and believe me, they're pretty upset by that!
You also put off tenants from renting if the office is too far away. I do everything electronically so I've only had to go into the office when we initially moved in, however, I have a lot of tenants who still come into the office to visit, pay rent, report maintenance etc. You're reducing your potential tenant pool there.
Lastly - the rental market is area specific. I manage properties far from my office at one landlords insistence, I told them that I would have to speak to other people I know in the area to ensure the rent is at the correct level as I may know my area market really well, I don't know the market in that area as well.
Well, that's my thoughts anyway, I'm sure many people have positive experiences with distant PM's, just weigh up the pros and cons. Also, if the family friend is doing something you're not happy about, are you going to be able to have an open conversation about it without ruining the friendship? Business and friendships often turn sour
.
