Hiya, Got in some RE agents on different days to go over my two properties to put up for rent in Western Sydney. I feel the majority of them underquote on the rent that could be achieved comparing them to the market for similar properties. I could be wrong as I am a noob . But I feel they only have interest in leasing out as many properties asap (by having lower rents) so they can sit their arse on the little rental returns they get. I mean free money right? Am I correct in this or am I being too hopeful? Has anyone else felt that agents may be under quoting rent figures that can be achieved? cheers
Ask the agent to advertise the properties at the rent you think they are worth for 2 weeks, no interest?, lower the rent to what the agent thinks is more achievable ... simple
It can happen both ways, but it's more commonly the opposite- BDM's will overquote to win the business (which the PM's HATE). It's called "buying" the listing, and it's also rife in sales. Have you expressed your thoughts to any of the companies vying for your business and listened to their justification as to why you're 'expecting too much'? I think the way they deal with that objection would tell you a lot about their sincerity and approach.
If you don't trust them, do you own DD - when we started off, we would go to the agency pretending to be renters, and inspect the properties in the area to get a feel. We'd then watch to see how quickly they got rented (if at all) The Y-man
Always at least one smart arse comment in any thread. Rather than contempt I view agents as assets, have asked them over and got plenty of ideas from them - ie some changes/tweaks/updates to property to make it more suitable. A couple were pretty helpful and rather than vying for the job recommended me these tweaks and gave valuable advice on the market, type of tenants, price guidelines, legislation, problems etc.
I did what the other guy said about putting it up for 2 weeks. My Mildura property had a few different PMs quote me all around $275-285 PW I basically just told the PM I chose that I wanna try for $300 so we did got a ton of interest straight up and rest is history. Will probably go up to $310-320 next year.
Hey, we're sensitive. Property Managers really just want to be your friend I think @Trainee probably just read the tone of your post differently to how you intended.
As Tom indicated there seems to be a huge swing both ways in asking price differing between some BDM's over pricing and some PM'S under pricing which then creates a difficult job of appraising like for like as the results are skewed with not every agent accurately reflecting the actual leased amount. Certain areas of Western Sydney at the moment are really popular with multiple good applicants and some offering more than asking to gain an advantage over the others. This doesn't always mean the agent under priced however a property is always going to be worth what a good applicant will pay. As above, I think you should choose the agent you have the best rapport with and trust in and ask them to advertise at your price for a week or 2 to see if you have any bites. Worst case scenario you have a few extra weeks vacancy, if you can sustain this then go for it
Hey guys, many thanks for the input, what are BDMs if I may ask? Sounds like a bondage discipline masochism thing to a noob like me . I am thinking of advertising with either eezirent or cubbi as was suggested in another thread. Eezirents far cheaper and hardly has much reviews on their Facebook page whereas Cubbi is substantially more exxy and has a following. Of course RealEstate and Domain is where the tenants generally come from. One thing I dont understand is with the number of calls these sites like Cubbi/Eezirent get from prospective tenants, whats to stop them being lazy and not passing on their details to you the landlord each time? Provided you are not going for property management with them, just pay for advertising space on RE and Domain.
I currently advertise using Eezirent. Have always found them very good and always promptly receive enquiries from prospective tenants, I could be wrong but I would expect their systems are automated so that enquiries are passed on to the landlord for action. Last ad (until property leased) was $130.
Thanks Jaydee, they are QLD based and I cannot see many NSW properties advertised with them, not sure why they are so much cheaper than their competition who are mostly in the $200 mark. Am thinking of going with them, just researching atmo
I had Mildura property managers tell me I could only get $270 a week so I sacked them put tenants in @$350 and they were better tenants then the entitled tenants Mildura managers put in. They seem to have mates rates and and rent to the same people for decades to make their job easy so they are able to manage more proprties. Had them use an electrician that told me I needed to spend 8k to replace an aircon, I got some-one else to look at it and it only needed a $20 switch.
Be proactive instead of being reactive. Do your own research. Run it like it is your business don't just rely on others. That's what I do. Although this is for QLD IPs..... Just now 3 of my IPs leases were up for renewal. I am trying for 2 IPs increases and left one as is. I compared similar properties, what rents for what, how many beds, baths, etc, how many rentals, what my rent was relative (if higher or lower or on median), knew tenants current employment status, etc... One just came back with $5 increase, still waiting on other two. The reason I did not increase the third was it was on top of market, family had health issues, so different reasons.
