WA Advise on selecting Tenant for new IP - Perth

Discussion in 'Property Management' started by LeonK, 4th May, 2022.

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  1. LeonK

    LeonK Member

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    I managed to secure my first IP in Waikiki, Rockingham and just going through the process of renting it through a local PM in the area. As this is my first time, I am struggling to select the tenant.

    So far, there have been a single open viewing and my PM mentioned there were around 4 applications and have forwarded me a single application as most appropriate/ preferred. The application is from couple with a kid and I am finding few red flags:

    - Currently staying with applicant's mum but mentioned that they rented for 8 years before that. The name of the PM they gave reference for does not appear in the agency's team on it's website. I couldn't find that name even in google search.

    - Above is the only valid reference as per me as the other reference is from applicant's mum (which according to me holds no merit)

    - The reason for leaving the rented house is given as - the owner moved in. However, I can see that the property was rented out last month. It is also mentioned that they have been unsuccessful in securing any rental since leaving the previous house.

    Am I overthinking and over-complicating the selection? Is this the basic due diligence and should have been done by leasing team itself? The leasing team is telling me that it is difficult to find tenant in this area!

    Any suggestions/ inputs would be greatly appreciated.

    Thanks
     
  2. Trainee

    Trainee Well-Known Member

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    Ask the pm for the details of the other applicants.
     
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  3. thatbum

    thatbum Well-Known Member

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    Probably.

    As mentioned above, you can ask for the other applications, but none of the stuff you mentioned seems like a big deal/probably has an innocent explanation.

    What were you hoping to get?
     
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  4. LeonK

    LeonK Member

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    I am mainly concerned about the PM reference they have provided as that's crucial for selection. As the landlord, would it be fair to contact the reference directly to validate?
     
  5. thatbum

    thatbum Well-Known Member

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    That's for its there for isn't it? Is that what you mean?

    And did you mean instruct your PM to contact (or find) the reference? Or are you talking about wanting to do it yourself?
     
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  6. Shogun

    Shogun Well-Known Member

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    1. The owner may have told them that so they moved out and put new tenants in at a much higher rate.
    2. Difficult for many to find a property to rent some apply for hundreds before getting one.
    3. Probably. If you don't trust your property manager why did you hire them?
    4. Regardless of what you read on here. Many in the area have an upper limit of how much they can afford. Are you asking a realistic amount of rent?
     
  7. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    If you’ve only held one open for inspection and you don’t like the applications then just instruct your PM to keep holding them weekly until you do.
    As far as I was aware the vacancy rate was low in the area.
    As to ex PM it’s a high turnover industry so they may have left the company but I assume your current PM did get their reference company to verify the important stuff like - paid rent on time, no breaches, looked after property.
     
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  8. LeonK

    LeonK Member

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    Well well here is the update.

    It turns out to be that all my presumptions about the applications were right. I called the applicant's earlier agency myself skipping my now agency/ PM and shocked to get the negative feedback. about their tenancy. I came to know the PM they mentioned in the application does not work there and was probably some friend/ family member instructed to say good things about them.

    Reported this to my agency and they are now apologising for not doing thorough checks. They only called the mobile number in the application not to the agency itself. They are offering me a weeks mgmt fees in compensation and promising more scrutiny of applications.

    Spent hours doing this due diligence and few more stressing about the situation. I definitely learned some lessons here, but sad to see PM/ Agency with 4.8 stars not doing the job appropriately.
     
  9. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Wowzers so they didn't call the normal agency number but the direct number given for a PM at the agency? I'd be hanging my head in shame.

    They definitely should give you a week free because now it's going to take another week to have a home open and go through applications etc. I'd be asking for 2 weeks free.
     
  10. wylie

    wylie Moderator Staff Member

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    They are offering to waive their fee for one week (not reimburse you the week of rent you’ve lost)? Pfffttt!!
    I’d be looking for a new agent.
     
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  11. MB18

    MB18 Well-Known Member

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    Its a pretty standard play having a tenant list a friend to act as a landlord reference.

    Its also pretty common for a reference check to not actually be done. When it is, the line of questioning is seldom worth the phone call.

    However you go about it the best you can do is actually meet the tenants in person. That inself is rare, particularly as most PMs themselves seem to use the office junior to hold the opens and meet the prospective tenants.

    Its a process ripe for gaming, and im surprised it doesn't come to light more often.
     
  12. spoon

    spoon Well-Known Member

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    At the end of the day, it's only a job and managing IPs for you isn't really "profitable business". I know I might be over critical but many years ago I engaged a similarly highly rated REA as my PM and only ended up my place was wrecked. The tenant left with rent arrear and I have to chase up the shortfall myself. The REA? Just apologise and heaped the blames on the "now departed" PM. I have since self-managed my IPs without such incidents (yet). Guess where are the IPs? Perth :D
     
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  13. jaydee

    jaydee Well-Known Member

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    I totally agree.

    As for offering 1 weeks free mgmt fees, Pfffft exactly.
     
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  14. Mel Morgan

    Mel Morgan Sydney Property Manager Business Member

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    1 week's free management is very little - I would be expecting 1 month.

    I was going to suggest that they should have a ledger as part of the reference check and that is a lot harder to fudge. If things don't add up its always worth digging further.

    I'm concerned your PMs told you its hard to find a tenant in the area whilst getting 4 applications from the first open!
     
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  15. justine77

    justine77 Well-Known Member

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    I looked at some rentals for a relative who was away . None of the agents seemed to care much re rentals . Only one agent chatted with visitors asking if they thought they wanted to lease the property or what they would need . My relative was rejected twice pribably due to having young kids despite that they have genuine good references and 6 monthly inspections the agent always was surprised at how well they care fir the property . The young children are at school ir CHIldcare all day and they have a cleaner and they really care for the property . They were acceoted in a lovely property a bit further and bigger than the one they wanted so even really good tenants can b screened because they have a few young kids.
     
  16. Propin

    Propin Well-Known Member

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    Yep was definitely a red flag! I’d change PM or agency
     
  17. Tom Rivera

    Tom Rivera Property Manager Business Member

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    I'm so glad for you that you looked into that further! This is a big part of why all reference checks are done by email to a genuine domain. We had someone list their agent as "[email protected]" the other day... haha!

    Amazing that your agent just took down a reference from a random mobile number!?

    I don't think you should be focusing on compensation from the agent, though I suppose that's part of the issue. How do you think they're doing otherwise? Is the Ad well presented, are they communicating well, are there multiple viewings a week? Ultimately, do you feel like the issue was isolated and are you comfortable proceeding with them?
     
  18. lyndan

    lyndan Member

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    was it easy to find a good Tenant at the end?