Using the same property manager as other owners in the same apartment building

I am thinking of turning my current PPOR into an investment property. The three bedroom apartment is identical to three other apartments on the same floor in the same building. All three are managed by the same real estate agency, which is well known in the area.

I am wondering what are the disadvantages of choosing the same real estate agency. I reckon renting out a three bedroom apartment is more challenging than for example a one bedroom apartment. Using a real estate agency that has experience in the same building with the same type of apartment would help I think. What are you thoughts on this? Am I overlooking something apart from the potential conflict of interest when my and any of the other apartments are on the market at the same time?

 

Four three-bedroom apartments on the same floor of the same building are rarely identical.

One will have a better aspect (winter sun?), better breezes, one may have better views, one may get more street noise, etc. There are other variables regarding internal colours, presentation and fitout, renovations etc.

Just beware if yours is the “worst” on that floor. If more than one are vacant, you want to make sure yours is the best choice for the price.
Marg

 

The up side if a controlling interest manages a majority if not all the available rentals in a particular building is the creation of a mini monopoly in that if it's a good building and people want to live there, then they have little choice but to pay the asking price, which can be very lucrative for investor owners and is not illegal at all. When the rental pool gets diluted out to different agents, then the owners' lose this monopoly ability. Unfortunately a lot of owners in buildings are narrow/short sighted and don't understand or see this benefit and shoot themselves in the foot by using outside agents instead of the onsite manager for example. with that said, if the onsite manager is not great, then it leaves little choice but to use a better property manager.

 

I could not care less how mnay or how little an agent handles in same block, area, street etc...

Same selection process, attitude, including toward me and tenant, willing to look after my interests and asset, ability to understand and charge market rent, carries out proper inspections etc, this is what matters, also, ability to handle things when not going well....some PMs will just bail on you when it is not all easy peasy.

So, yeah, many aspects and much to think of, I suggest clearing your mind and working out who will look after you best, it can be very, very hard too work out some of these things until your in it knee deep.

 

I think there are some advantages to having the same agent, such as if they get more than 1 good application on another unit, and they know they have something almost identical coming up, or if there are strata issues then they may be more familiar.

Also if more than 1 unit is vacant at a time, having one sign out the front looks better than two.

At the end of the day though it comes down to how good the agent is and how proactive and strategic they are in being able to secure you a tenant & look after your investment.

 

Thanks for the great advice.