NSW Finding tenants in 10 Days

Hiya,

Got my properties up on RE Domain and Gumtree, all self advertising via online portals. Two weeks in got a lot of interest but hard to get good people. A lot of unemployed, large young families on centrelink, young people with no rental history etc etc. Then I got a message from an agent who has several pretty good reviews online on google who sent me the below:

"Hi there,
In our office we guarantee the following for all landlord's!

1: If your tenants don't pay the rent we do!
2: Get the first repair free.
3: The first 2 months are fee.
4: we have a 60 minute enquiry turnaround.
5: we will lease your property within 10 business days and if we don't you don't have to pay our letting fee.
6: Our management fees are cheaper then most agents".

What is everyones thoughts on this? Guaranteed tenants in 10days? What questions should I ask and what to watch out for.. She promised good tenants not just anyone..yada yada.. Anyone come across this sort of thing and is it worth giving it a shot?
cheers Ron

 

What’s the name of the agency?

 

What kind of tenant do you think you are going to get at day 9?

 

How are they going to achieve this? Eg - Month 3, no rent, no funds in their trust account (can't use other owners' funds, they hadn't collected a letting fee & the bond is only 4 weeks

First repair will be absolutely minor

Free for who?

They will answer their phone/return a call. No timeframe for resolution of the enquiry.

It puts an unreal expectation on 'tenant'

Have you compared all of their other fees and charges against the market? Management might be 'cheap' and not just on a what it costs basis.

 

Real estate agencies that offer these sort of things will have 'terms and conditions' attached.. and one of them will invariably be that the agency will only pay lost rent or letting fees etc as long as the owner has followed the recommendations of the agency - and this would revolve around the asking price.

For example, if the agency tells the owner to "drop the price by $50.00pw" and the owner says no, then that owner can kiss all those sweeteners goodbye.

 

I would be quite concerned with a PM that has a race to get a tenant in place. I would much prefer a patient approach to find a quality tenant at the right price. The agent also seems to have a strategy of growth at all costs which could overwhelm them at your expense. They will employ staff and work them hard and when they leave the cracks will show

There are agents out there who may polish the facts and their claim for fast tenancy may have a sound basis - That could alarm you. eg Do they have a continued supply of tenants because they have a deal with parole officers ? Or an arangement with a drug rehab centre to rehouse people.

Promises come with a cost. Its why rental guarantees should be a concern to investors

 

Any company that feels the need to offer any of this crap is not trustworthy and my reply to them would be abuse.

 

Red Flag Property Management?

Yeah, name them so we can all switch our rentals over to them .

 

Okay, here is the guts of it:

Good Morning,
Our Property Management team is focused on quality customer service and ensuring the best quality applicants when leasing properties. We take the hassle out of owning an investment property.
Our team manages properties all around Sydney and can provide you with an updated appraisal upon request.
Please see below our office guarantees for all landlords.
Please find attached a copy of our management agreement and information about our services.
1: Guaranteed rental income – We pay your rent!!!

XXX Real Estate will pay your rent to you on a weekly basis even if your tenant fails to do so. Unlike other agencies that delay payments leaving you out of pocket for months on end. This ensures peace of mind in knowing that your income is safe and secure.

2: Get the first repair free!!
The first repair that is reported by your tenants will be paid by our agency!

3: Would you like to be free from management fees for the next 2 months?
If you are unhappy with your current property manager, come over to our agency and we will give you the first 2 months free. We will even give your current real estate agency your notice and collect your file. Basically we do all the work for you.

4: 60 Minute enquiry turn around
Tired of Real Estate agencies not answering your phone calls or returning your messages? At XXX Rent Real Estate we do not allow our phones to ring out… EVER!. We're really fast, give us a call!

5: We will lease your property within 10 days, and if we don’t you won’t have to pay our letting fee!
We are so confident that we will find you suitable tenants within 10 business days that if we don’t, you will not be required to pay our letting fee.

6: Refer a friend
If you refer a friend to our agency both you and your friend will receive 2 months free!


Please see below a list of our fees and charges:


Management fee:

- 5.5% including GST


Please note that if you have a current agreement with another agency, we are happy to price match the fees upon sighting the agreement


Administration Fee:


- $6.60 per monthly.


Letting fee:

- 1 weeks worth of rent including gst.


Tenancy agreement fee:

- $100 tenancy agreement fee. .

 

Not sure if its the right thing to release their name so XXX it is

 

wait, that "first repair free" clause is pretty crazy......

so if my hot water system breaks in the first week, they will pay $2000 to fix it for free!?

I dont think so.....


edit: googling the first few lines brings up the company pretty quickly,

 

You mean these guys?
Guarantees You Can’t Miss – Assured Rent

If it is, then you need to read this:
Terms & Conditions – Assured Rent

 

Kierank you could be onto something..

 

Are those conditions worth it? I don't think so, but I'm novice, need the pros to chip in.

 

Sounds too good to be true, which usually means it is.

There are so many horror stories about bad tenants on this forum. Shouldn’t compromise on finding a quality tenant, even if you have to wait a little longer. Pays off in the long run.

 

The theory with these agencies is that offering these incentives is cheaper than purchasing a rent roll, which is somewhat true. It's also a popular strategy to build a business fast to sell on.

It's possible that they could provide fantastic service, why not give them a try?

 

Their fee structure is based on growing at maximum pace. Whilst they might have resources and processes in place, often they get overun and the quality of management disappears. Also as Tom mentioned, they might be looking to build a rent roll to sell, so you wont know what happens down the track.

The high tenancy agreement fee and admin fee means they still get paid something regardless.

 

1. Make sure you set the allowable limit that the agent can authorise repairs for to $0
2. Get them to replace a known leaking roof
3. Profit!

 

There's a $300 limit in the T&C's. Bugger hey!

 

And through their authorised tradies.

They dont seem to limit by suburb. How do they manage properties all over the place?