One of the first Property Management questions is about fees. This is perfectly understandable, however, it can be false logic when you really analyse what the numbers are. Don’t forget a good agent is tax-deductible too, so why skimp?
On a $500 per week property a difference of 1% can be equal to a cup of coffee per week!
When you think about it that way then choosing a property manager becomes a lot simpler. Choose who you think will do the best job and will get your property leased faster. It’s straight maths. If your tenant is behind in rent, rent reviews haven’t been done or the property is vacant, or maintenance is building up – then you are losing money. Agents that promise the earth for discounted fees are not telling the truth or don’t understand the real costs of running an efficient dynamic business. They will need to reduce staff, technology and quality marketing if they reduce fees – all of which impact your yield throughout the course of the year.
Would you fly an unsafe airline for the price of a coffee? This is your biggest asset after all!
The less you spend, the longer it can take to lease!
Letting fees are another worry for owners – but it shouldn’t be. The less you spend with an agency often the longer it can take to lease as it becomes a lower priority – so lost rent. Straight maths again. Every time an agent carries out an inspection it costs the agency money. Staff are a fixed cost. If the agent isn’t dedicated to just leasing tasks, isn’t properly incentivised or is distracted by multi-tasking, then they won’t show your home as often. Agencies simply won’t have the cash flow to spend on vitally important areas so you miss out.
If your apartment or home is vacant for 4 weeks longer than it needs to be, then you have actually paid that agent a 4-week letting fee!
Correct marketing can lease your property up to 2 times faster!
We can’t stress enough the importance of marketing for the health of your investment. Good photos, attractive interiors, video walk-throughs, virtual tours, signs and prominent web placements get the job done faster, so be proactive and invest in your investment fully.
Investing in good marketing pays off throughout the life of the property. Great photos form the foundation of your investment and can be re-used time and time again and they can be put up online the minute a tenant gives notice. Once again saving vacancy time and again as little as a cup of coffee per week – don’t forget this is tax-deductible too!
If you are demanding the agency doesn’t charge for marketing then you are harming the long-term health of your property as they can’t provide all the essentials, it just simply costs too much – they can’t work miracles.
Instead of asking what are the fees, ask what do I actually get for my fees?
Below are some Property Management questions that we recommend you ask your current Property Manager
- Do you have a leasing agent only dedicated to leasing my property faster?
- Do you have the best quality/highest placed listings on realestate.com.au and domain.com.au and will my ad stay at the top of every search?
- How many websites do you advertise on? We use 6 websites minimum.
- Do you allow tenants to inspect when it suits them, including before and after work operating hours?
- Will there be a FOR LEASE sign put up?
- Do you include a video walk-through and virtual tour of the property as a part of the marketing?
- Do you monitor the hits and feedback daily and adjust campaigns as necessary?
- Are applications processed on the same day it’s received?
- Will you be performing tenant interviews?
- Do you check if a tenant is blacklisted as a part of the thorough screening process?
- Do you arrange depreciation reports for property owners?
- Will there be a 6-week inspection if a new tenant goes in to see how they’re fairing and then twice yearly afterwards ongoing?
- Do you re-list and show properties to inspect before the existing tenants leave, minimising vacancy and maximising your profit?
- What software do you use that ensure all checks and balance are in place? REST, Inspection Manager, Maintenance Manager, AgentBox, Inspect Real Estate, Lyme
- Live Media, Agent Point and anything else that is cutting edge?
We do all of the above, so you don’t lose valuable rent – that’s why we are one of the cheapest agencies!