Self management - instarent, eezirent

Discussion in 'Property Management' started by Trall, 10th Mar, 2021.

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  1. Trall

    Trall Member

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    Hi,

    I'm putting a property on the market soon and was wondering if anybody has any experience with Instarent or Eezirent (or others - cubbi, realrenta) that they could offer?

    Particularly if you have had any issues with tenants, or have had to contact the company for advice of some sort.
    Eezirent seem to more explicitly offer advice for landlords, while with Instarent it appeared a bit vague with reference to their 'chat system'.

    Thanks!
     
  2. Trall

    Trall Member

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    Okay brief follow up, I spoke to support for both of these companies.

    Eezirent: Said that they can try to help where they can but generally would point you towards the relevant authority for your state.

    Instarent: Said that they're just a platform, a tech company, not a real estate agent (even though here it actually explicitly states that they are a licensed real-estate agency) and to take their advice with a "grain of salt".

    Some other notes: eezirent don't appear to handle payments at all, you can just manually enter payments into their site's basic ledger. Instarent can do payments, at 99c per transaction (bank, direct deposit) and credit card at 1.65% surcharge.

    I wish these companies were a bit more up front with these sorts of things on their websites.
     
  3. thatbum

    thatbum Well-Known Member

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    Just curious, what are their fees like?
     
  4. Trall

    Trall Member

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    You can find the basic pricing info on their websites;
    eezirent: $130 listing, $29/month subscription
    instarent: $199 listing, $20/month subscription
     
  5. skater

    skater Well-Known Member

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    I'd just get a Property Manager.
     
  6. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    They facilitate basic platforms that assist you to self manage. None are licensed real estate agents and cant provide agent services or even legal services (leases, claims and disputes). These are just software companies. Some have ties to service providers who may charge you for any assistance.

    In my experience its all good until a problem occurs. Self mangers always encounter roadblocks with tenancy "problems" and then seek help. There is no free help out there. You may get what you pay for.

    ie Post on PC...How do I evict etc etc. The damage is done. These platforms dont have a inbuilt ******** detector that a good PM has. A bad tenant may even be attracted towards such property after mainstream agent rejections. Many staff at real estate agents physical office get to see a tenant when they come in and appearances can count. REAs often move good tenants from one property to another ensuring great references.

    It may also be me but I also tend to see a correlation between self managing and wanting to avoid repairs and expected costs (eg smoke alarm compliance etc). ie save money at all costs.
     
    Last edited: 10th Mar, 2021
  7. Coen

    Coen Well-Known Member

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    We use Eezirent for listings of multiple properties (don't need the extra benefits provided by the monthly subscription). Have always found them very good to deal with and you get the personal touch of being able to contact a real person by phone.
     
  8. Coen

    Coen Well-Known Member

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    For advice on issues with tenants ... as an owner self-manager you are very much on your own. Read the Act and get basic managing advice from RTA. If it gets too hard then get a property manager. Seems there are plenty of organisations out there for rogue tenants (sorry, I know there's good ones too) to get advice on how to get out of their obligations, but no help for owners having to deal with this. It can be very challenging.
     
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  9. Kubcat

    Kubcat Member

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    I have been using Instarent for a while now.

    We have some properties with an agent and when they need to be re leased Instarent seems to win in finding a tenant because an agent puts a tenant into any of their properties they think are suitable whereas a landlord looks after their own as an an owner does.

    Agents are great sometimes but a property manager will be looking at over 500 properties. It is pretty hard to give them all the attention they need sometimes.

    What often happens is that a tenant reports an issue, the agent responds when they can, reports it to the landlord, the landlord asks a question, the agent asks the tenant when they can, they get an answer, back to the landlord etc....

    With Instarent and possibly the other app mentioned, you as a landlord decide how quickly you respond. If you are quick, you are more likely to have good relations with a tenant.

    An agent gets a commission every time they relet your place. Their financial incentive is not to keep tenants long term.

    A landlord needs to cut unnecessary expenses as much as possible, so keeping the tenants as long as possible usually helps.

    The apps like Instarent do not replace a property manager, they help you do it yourself at far lower cost.

    They, at least Instarent does, help you do inspections reports, prepare leases, lodge bonds, find tradies when required etc.

    They provide a 'paper' trail that is evidence if you need to front up at the Tribunal.

    Also you get a different type of tenant with an app. Someone more tech savvy and often higher income, better job etc. We have found great tenants with Instarent.

    The other app might be similar, don't know.
     
  10. thatbum

    thatbum Well-Known Member

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    It doesn't sound substantially better than just self managing with a good excel spreadsheet and a book of tradie contacts?
     
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  11. Michael Mitchell

    Michael Mitchell Well-Known Member

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    Absolute rubbish. Ask any agent if they *like* doing entry/exit reports and everything else associated with a changeover. The fee barely covers the time and work involved, especially when it's not straight forward and there are problems. The product is "rental accommodation", as @Mel Morgan said in another thread, the less downtime the better and the less wear & tear from removalists that takes place. It is only people who don't work in the industry that express a view point like what you have.
     
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  12. momentum26

    momentum26 Well-Known Member

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    It appears you are underplaying the value a good Property Manager could add to an investment property.
     
  13. momentum26

    momentum26 Well-Known Member

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    If you have a good PM managing your asset, it is unlikely you’ll have issues with tenants or your rental income.
     
  14. skater

    skater Well-Known Member

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    Clearly you've used the wrong property managers in the past.

    You don't know the value of a good property manager until you get a crap tenant. Even good tenants can turn bad, depending on their life events.
     
  15. Kubcat

    Kubcat Member

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    I have been using Instarent for a while now.

    We have some properties with an agent and when they need to be re leased Instarent seems to win.

    Agents are great sometimes but a property manager will be looking at over 500 properties. It is pretty hard to give them all the attention they need sometimes.

    What often happens is that a tenant reports an issue, the agent responds when they can, reports it to the landlord, the landlord asks a question, the agent asks the tenant when they can, they get an answer, back to the landlord etc....

    With Instarent and possibly the other app mentioned, you as a landlord decide how quickly you respond. If you are quick, you are more likely to have good relations with a tenant.

    An agent gets a commission every time they relet your place. Their financial incentive is not to keep tenants ling term.

    A landlord needs to cut unnecessary expenses as much as possible, so keeping the tenants as long as possible usually helps.

    The apps like Instarent do not replace a property manager, they help you donut yourself at far lower cost.

    They, at least Instarent does, help you do inspections reports, prepare leases, lodge bonds, find tradies when required etc.

    They provide a paper trail that is wvidence if you need to front up at
     
  16. Kubcat

    Kubcat Member

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    We have a property with an agent that NSW Police broke down the door to execute a search warrant.

    The eviction process has started and she has decided to trash the place as retaliation.

    Agents can only do so much.
     
  17. Kubcat

    Kubcat Member

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    I have had and do have a number of agents. Most are great till something out of the ordinary happens.

    They really don't have the time to deal with the difficult tenants due to managing so many properties.

    Some think that agents vet the tenants more thoroughly. Maybe but we had one where we evicted someone and they ended up in another of our properties because their mum signed the lease. That was with the same agent.
     
  18. Mel Morgan

    Mel Morgan Sydney Property Manager Business Member

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    It would be nearly impossible for 1 single agent to manage 500 properties, they're likely in a team where each person specialises in an area and then you would have effectively 3-4 agents, maybe its only the 1 agent that you deal with.

    Our business has the equivalent of 2.5 full-time staff members in our office managing under 150 properties, not all PMs are the same.
     
  19. Shawn

    Shawn Well-Known Member

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    Agent > Self-rent any day of the week

    Instarent is charging $20/month. I rent out $860/week property for 4.4% per month. The amount I pay is $151.36. Over twelve months it's $240 vs $1812. I'd rather let my PM manage the hassle then save $1600.

    Even in QLD or Regional VIC where I pay 7.7% on $380 in rent - it's still the same outcome. I'd rather pay for problems to be resolved.

    Across my portfolio I would be paying PMs close to $10,000 a year. To me, a good PM is worth their weight in gold and allows me to focus on working in my industry and earning more money there rather than attempting to save $10K in fees.
     
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  20. Mat

    Mat Well-Known Member

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    That's odd. Instarent is a business name of SE.GROUP Pty Ltd, ABN 82 607 205 283, which actually does hold an NSW property agent's license with number 10084007.