Your Ideas on Better Service to Landlords?

[Simon]

I only did the exercise to gauge why PMs are so poorly paid. Can't see why they would be if they had a 100+ rentals on the roll.

It is the owner of the rent roll that makes the money.... For every $1 he saves on wages that is an extra $1 for himself!

I was talking to another client who had sold a rent roll onto a new agency and it was valued at $1500 per landlord. When you realise that this is what you as a landlord are worth to the REA then sometimes you wonder why you aren't serviced better.

That figure was correct for Newcastle about 2 years ago so it might be higher or lower depending on the average rent and maybe some other variables.

Cheers,

 

[thefirstbruce]

Some thoughts....

Other oveheads - book keeping, accounting, legal compliance, tribunal representation.


I understand most PMs use mature software for keeping records...so can't imagine bookkeeping would be that intensive..., and accountant should be presented with computer generated reports...

From what I know, PMs charge an extra fee for tribunal appearances.


At 120 properties, that would also be 240 half yearly inspections per year - so average 1 inspection per day.


Aren't they doing quarterlies now? so that's 480 a year....10 a week....25-30mins each (with travel time)= 5 hours a week.....



...oh and 30% tax on your net profit


a smart business doesn't make a profit
REAs use the rent roll cash flow to carry the sales dept through bad times.....and to service the principals' car leases...


Your supposition as part of an exisiting REA would therefore include:

1. Office fit out, workstations, printers/copier/fax, and consumables.

hmmmm....office fitout might be a desk, filing cabinet, and plastic palm tree added to the REA office

one extra workstation....one off cost of $1k fully deducitble via STS...

MFC split with Sales Dept. $1000 can buy a quality duplex mono laser MFC

Consumables catered for in the original office supplies $2k pa


2. A good internet connection and a hub to connect workstations.

split with sales dept.......connection $800pa, adsl modem & router $350

3. Security for accepting cash rental payments.

hmmmm....wonder if they use a safe or a cash tin....can't be too many making cash pmts these days.....

Cheers,

The Y-manThe Y-man

............

 

[crest133]

PM job description is too long to fit in a small book.
The best I can think of is that a PM should find out exactly how much involvement the PO wants, include them in the loop to that degree only, then take great care to look after the property as if it were their own, and take care of the PO's best interests at all times.
That's all a PM has to do to become a legend, because there are so many hopeless ones.
cheers
crest133

 

[Rob Honeycombe]

thanks!

thankyou to everyone who offered their opinions. Collectively I'm sure there's a hell of a lot of landlord experience and we really value your input. As PT Bear put it perhaps the best thing we can continue doing is "walking a mile" in our property owners' shoes.
many thanks
Rob Honeycombe