Investors of course want to minimise vacancy in their rental properties. However many investors tend to wish to hold out for a higher rental return rather than fill their property (and start receiving income!) more quickly.
In this post we'll run through a real example of the outcome of holding out for higher rent, based on a property in the Newcastle area which we had proposed to manage. Details of circumstances are contained in the text, but if you want to cut to the chase, you can scroll to the table at the end of the post.
Newcastle Property Management - A Shocking Real Example Of A Landlord's Experience With Another Agency
This article serves as a sad reminder that things are not always as promised when you select a Newcastle property manager to look after your investment. We have recently taken on management of a property for a landlord who continues to be astonished by the shocking service provided by their previously-selected agent.
We've since had desperate tenants walk into our office in the hope that there is still life in an application they previously submitted to the outgoing agency.
The quick summary of this more detailed article is:
DO NOT SETTLE FOR A SERVICE YOU ARE NOT HAPPY WITH OR AN AGENT YOU ARE NOT CONFIDENT IN.
There are many factors which influence how long a rental property may remain on the market before a suitable tenant is found. Some of these relate to the property itself, others to the agent selected to list the property, and others to the rental market at the time of listing.
While the following list is not exhaustive, it provides a good starting point for understanding the reasons impacting how long a property may remain on the market, and what can be done to up the pace.
There are many advantages of consolidating your investment property portfolio to be managed by a single property management company. The benefits range from operational aspects which make life easier for you as an investor, to being able to maximise your return on investment through having visibility of your investment properties as a whole.
When considering turning a home into a rental property in Newcastle, one of the first questions asked by a new landlord will be "How much will the rental property management fees be?".
As we advise each investor we meet, property management fees should be considered alongside a mix of many other aspects. The old saying "cheapest is not always best" certainly applies to rental property management fees.
Why? Here a just a few reasons (but don't worry, we also answer the question...!).
It's a question as old as property management itself. How many properties should a property manager be managing? How many is too many?
It is not a question we are asked frequently, but from time to time it crops up in meetings we have with investors.
The response to this question was interestingly responded to in the article "How Far Can A Property Manager Walk?". In summary, the idea is that if you were to be asked how far a property manager (or anyone for that matter!) could walk, your mind would be over-run with variables which make it difficult to come to a clear answer. How fit is the person? What supplies do they have with them? What incentive do they have to keep going? What support do they have along the way? How appropriate is their footwear? What are the conditions like that day? And so on.
It is a common misconception that when you buy an investment property, the same agency who sold you the house needs to manage the rental property for you.
Real estate agencies which offer both sales and property management services can make it seem easier or otherwise beneficial to use their services to manage the investment property for you once it has been sold. In reality, there is negligible benefit in this approach.
Carnelian Property Management Newcastle NSW
We are a family-owned and run Newcastle real estate agent offering expert property management across Newcastle and Lake Macquarie.
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