"No i wont manage that IP for you" says PM

coming across a lot this lately .

Buying Ip say in Ashmont or Moree or Wellington and finding the Sales agent saying sorry our agency will sell the IP to you BUT we wont manage it for you as we consider it to tough !!!

Well.... You know ... If they want to be property managers how about growing some balls and doing the job .

Now I know areas such as Moree, Wilcannia , Brewarrina etc would be " challenging" but either charge more or get out !

Now I across a house in Wellington NSW and went to have a look..ok it was in a Housing Dept area... But it seemed ok ... Apart from the old car in the front with no wheels and overgrown grass.
But the agent selling to me said "No we wont manage it for you... Toooooo much headache this particular area"

As some of you know I rented a vehicle from "Go Get" only to get bogans approaching my car at traffic lights etc asking if im selling "goey" which appRently means the green wacky tobacky.

Now it didnt put me off... So why are these agents now becoming picky ? Did they do this 20 years ago... No they didnt ... Its these young agents who are lazy and take days to respond to your IP emails.

 

They did

 

Makes sense to me. Maintain a competitive advantage and better service by avoiding really difficult properties.

Not the kind of stuff I'd be wanting to buy either.

 

No... They are actually SELLING the property ... But... Wont manage it !!!

As I said to the charming Agent on the phone this morning at Wellington NSW who told me they have an IP selling for $89,000 .... All good.... But they wont manage it... And another PM said no on hearing the address so who do we investors turn to when these lazy lazy Property Managers wont do business with us !!!!

Obviously they must be making money if they can turn customers away !

 

Unlike selling , managing is a long term relationship.

 

Because it doesn't fit their business model. Maybe they avoid management risk by avoiding these types of properties which cost more time to manage. This allows them to keep costs down for others.

Plenty of businesses do this, to mention some in the industry, banks and insurance companies.

 

To be fair, when you work out how much an agency earns per annum to look after a property, it isn't much, and in trouble areas there are also issues of staff safety when visiting the property. It's their company, they can decide their product & service offerings.

 

How much rent do you expect to get from one of these 'gems' - say 8% (gross), that's a whole $7,200/year.

Is it worth it to an agent to charge $100/wk? Would you pay it? I know I wouldn't do it for 10% ($14/wk)

 

It's a business decision - I don't see an issue with it. A rental agency doesn't have to accept a listing.

Cheers

Jamie

 

All these towns have REAs that will sell, but often not manage or really picky with what they manage.

Speak to all agents in town or who do the area, and work out which ones will do what you want, and then choose from them, no need to use the selling agents PM

 

Very simple to understand,it's because they can,that's the way business works,as for the gentlemen desperados at the traffic lights if they were on the green smoko ,unlike goey as in meth they would not be banging on your cars door,not even in Nimbin central..

 

Smart businesses know which opportunities to reject.

When I owned my last business, we would sell to Federal Government and State Government but would NOT touch Local Governments with a barge pole. We used to get their tender requests, spend hours/days working on our response, go through the whole evaluation process just to end up with a non decision.

We decided to leave LGAs to our competitors to handle and I am taking about organisations such as BCC, ICC and GCCC.

Best decision we ever made. For us, there was plenty of sweet tasting reef fish in the ocean that we did not have waste time and money chasing the rubbish such as sharks!!!!

 

The sales agent and the property manager probably aren't the same person. Selling the property might be worth while but managing it might simply be an ongoing liability. You can hardly fault a business for not wanting to engage in work that's only going to cost them on an ongoing basis.

It could even be speculated that the sales agent has reaslised how much of a problem this property is and has told the property manager not to take it on. They might be cutting their losses.

Perhaps this says something about the property or the location you're purchasing in? If the property manager doesn't want the deal, you should be asking yourself why and if it's still a good deal for you?

 

I learnt this the hard way,

I stood my ground and my morals with a few agents eg changing when they screwed me over etc. etc.

and with one area I had no agent that would manage property. You have to be careful on supply and demand of the area for managing agents,

with my current one , her communications is terrible, she does a ok job other then that,
sometimes 2 emails asking simple stuff and a week later ,not a whisper,

and when I call its like "oh yeah I did get the msg..................... silence"

I just bite my lip

 

Agree with @Jamie Moore. Nothing wrong with that.

 

No. Goey is speed/ice/crystal meth/amphetamine.

 

That's how they're making money.

 

Large chain agencies including small agencies have significant overhead running costs and govt licence renewal costs each year with an extremely tight profit margin if doing the PM role thoroughly such as undertaking detailed inspections, writing reports, identifying maintenance matters reporting to owners with maintenance coordination and follow up incl quotes, significant work involved managing monthly financial disbursements and paying utilities/rates etc etc on behalf of owners, sourcing new clientele via BDM work, providing individual rental appraisals and attending handover meetings , managing tenant issues, going to market and initiating and coordinating marketing campaigns, managing Bond movements, undertaking inspections incl private inspections, Entry condition and exit reports, and the list goes on. If a property is too time intensive an agent is not providing quality service to other properties and agencies that cap lower property caseloads to offer a better service have even tighter bottom lines...these factors influence the financial survival of a business esp those with no add on costs to management fees excluding relet fees to source new tenants. Hope this offers some helpful insight into the business

 

surely a property manager not willing to touch a property is a red flag for investing @Darlinghurst Boy ??

 

The odd full stop would be helpful.