Property Managers quoting low rental

[eternit]

Hi,

I am just wondering if anyone in Sydney experienced PM quoting low rental for a porperty?

I just recently bought a 2 bedroom unit which is currently rented for $190 per week. The current PM is saying that I should not increase the rent as I will be asking for too much ( I want $220 per week for it).

The reason I said to increase it to $220per week is because 1 bedder are renting for $190-200 in the area and I have seen one listed for $230 per week which is in very bad condition and has been rented already.

Just wondering, if its usual for PM to quote low rent?

Thanks.

 

[tess85]

whereabout is your IP?

 

[eternit]

The ip is in Carramar

 

[roosterfan]

I have found that recently, also in Sydney. Figured it was just easier for the PM to do that (ie not putting up the rent), that way they just roll over the contract and dont actually have to do any work!

 

[eternit]

I have found that recently, also in Sydney. Figured it was just easier for the PM to do that (ie not putting up the rent), that way they just roll over the contract and dont actually have to do any work!

Yes that is what I am thinking too. Because $20-$30 increase per week doesn't make much of a difference to the PM but it makes a big difference to the landlord.

 

[tess85]

your rent sounds a bit low for carramar. I guess the PM is not really looking out for you. Can you find another one who will work in your best interests? (good luck...)

 

[Xenia]

Yes it is "normal" for a pm to under rent properties and they do this to increase the turnover.

This is especially true in Sydney where the are prostituting themselves on fees some are charging 5%! How can anyone expect premium service from a business that is barely keeping itself alive???

5%!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

 

[willy008]

I went through the same sort of thing with my PM telling me I was asking too much $$$
I was starting to think who was she really working for?
then fianily got the rent I was after
now she mixed up my last months payment and its still not right
after this week she is going to have 1 less property to look after

 

[duckster]

The rent is low because the landlord can only increase the rent by a reasonable amount each rental increase. The current rental market has increased beyond a reasonable rental increase. So the current Tenant has a bargain rent until you change tenants or you catch up with regular reasonable rental increases over a period of time.

 

[Highlygeared]

Yes it is "normal" for a pm to under rent properties and they do this to increase the turnover.

This is especially true in Sydney where the are prostituting themselves on fees some are charging 5%! How can anyone expect premium service from a business that is barely keeping itself alive???

5%!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Hi Xenia

Sorry missed your point, how does quoting an under market rent to the landlord "increase turnover"? If the increase isnt painful enough, tenant stays on??

Having said that, yes my PM's put the pressure on ME rather than tenants...but I'm well educated on what rents are in the areas my properties are located. I normally ask them what they think I cant get, more to catch them out, not because I rely on what they think. PM's are just hired help/content to exist off ongoing commissions (passive Y) without staying true to their charter to service landlords.

 

[Gee Cee]

Sneeky Property Managers

I found this with one property manager I had. I would come up with all the local rents as per Domaine etc. She would say it was to high and we would not get that amount. Even if i only wanted to shift up $8 every 6 months.
When I insisted that she put the rent at the market rate guess what. She could not find a tenant. (I think the chicken was minding the wolf here)
As soon as I listed it with another agent that I use.
Bingo!
5 applications in 2 days. (Rented straight away at over what the agent had been instructed to rent at
So take care. Sometimes you control the controller. But they can control the situation

Gee Cee

Greg

 

[marg4000]

Before discussing rental adjustments with our PMs I always check out similar properties on realestate.com.au to see what the "competition" is charging. That way I come to the discussion with a fairly good idea of rentals for comparable properties, so can ensure recommended rentals are realistic.
Marg

 

[firstmillion]

Hi,

Just wondering, if its usual for PM to quote low rent?

Thanks.

Selecting a PM is as important as finding the right property, i guess. Talk to a few investors in the area (SS forum would have some), talk with different agents and give to someone whose main business is property management and has a good record of doing it.

Cheers

 

[ems]

We've also had problems with our PM suggesting lower rent with one of our properties. They said we would be lucky to get $520 a week but we had researched the area and come to the conclusion we could get $570, max $600. We found a tenant and their now paying $580 a week (due for an increase in Jan) I'm so happy we didn't go with the PM suggestions.....we'd be so far behind and would find it hard to increase the rent by such a big amount!

Cheers
Ems

 

[Xenia]

Hi Xenia

Sorry missed your point, how does quoting an under market rent to the landlord "increase turnover"? If the increase isnt painful enough, tenant stays on??

Having said that, yes my PM's put the pressure on ME rather than tenants...but I'm well educated on what rents are in the areas my properties are located. I normally ask them what they think I cant get, more to catch them out, not because I rely on what they think. PM's are just hired help/content to exist off ongoing commissions (passive Y) without staying true to their charter to service landlords.

sorry, I understood it as the rent being advertised below market rent to tenants. It would increase turnover by the house renting quicker in that case!

Must stop that speed reading and learn to r.e.a.d.....s.l.o.w...

 

[Mom]

Do your own reseach for rent in your area, then decide how far you would go. Shop around for your property manager. You're the land lord. You decide how much you want to rent your property for.

Be reasonable with the condition of the property as well.

 

[Stella]

As the others have said - I think the most important thing is for you to do your own research & know how your property compares to others in the area.
Certainly your PM should be able to guide you - but ultimately it is your investment & your decision.

Cheers
Stella

 

[twobobsworth]

If it was earlier in the year I would say that some PMs were still catching up with what tenants were prepared to pay.

Now however they should be all over it.

We just put up the rent from $260 to $290 in one property based on PM recommendation. PM outlined all of his current vacant rentals, recently leased and the time frames they took to lease.

 

[DCI]

Before discussing rental adjustments with our PMs I always check out similar properties on realestate.com.au to see what the "competition" is charging. That way I come to the discussion with a fairly good idea of rentals for comparable properties, so can ensure recommended rentals are realistic.
Marg

This is a good method for insuring comparative rental competitiveness in the market. However one thing to be aware of is that if all new rentals are based on comparative rentals they will always rise together at a slower pace.
If a new rental obtains a higher rent with similar attributes,then a new bench mark for comparitive rental is obtained. This helps lift rental returns on a uniform and steady basis. My point being it is always worth investing in obtaining a higher yield when possible.

 

[imonmyway]

In feb this year I leased out my first IP the agent suggested 230, i looked around and said to advertise at 270 we had some one move in the day after the property settled. I just advised a 10 a week rise and the tenanents accepted it no problem.

I think agents sometimes get behind in what the market is willing to pay so its definetly best to drive the ship yourself and tell them what you want.