Don’t know how many of you have seen this already, but it goes to show that you need due diligence over more than just the property.
http://www.theage.com.au/articles/2003/10/02/1064988348246.html?from=storyrhs
Rod.
Hi Rod and everyone
this is certainly an area i will be spending more time on in future. I was very disappointed to inspect a house that the tenant had vacated. i was told by the agent the house was ok and he had returned the Bond. today when i looked at the property there was a crack in a front window, carpet has small burn market and not clean (it was new 18 months ago) there was a green paint spot on the outside back wall. the lino was lifted in the bathroom, paint scratched off kitchen doors (more tahn wear and tear). the outside had rubbish in a shed and an old desk was falling apart in the back garden. i will be talking with the agent on Monday and i am not happy. has was managing 3 properties for me not anymore. i’m really getting sick of substandard agents, i’ve had a few over the years.
i can see why so many compaints are made against them
westanWe rent out our holiday house over Xmas… no problems until last year when we went down one weekend and found the screen door leading out to the decking was totally destroyed… from the empty stubbies and cans it was clear whoever rented it out had quite a party… Not expensive damage but annoying none the less.
We went to the agent, who was supposed to inspect it before giving the bond back, and he blamed the cleaning lady who he was relying on to give the place the once over, in both a cleaning sense, and an inspection sense… not good enough, and we don’t use them anymore.
Cheers
rHi all
i think we just have to get tougher and vote with our feet and move to a new agent as you have done Richmond. i know there will always be hickups along the way and agents cannot stop a lot of the problems but sometimes thay are just incompetent.
regards westan
I mentioned in an earlier post that I am now a renter and am appalled that the agent has not inspected once since I moved in. I will also have no problem getting my bond back when I leave as I filled out on the condition report that the property was filthy on entry. No one at the agency ever queried that report which means I can leave it any way I like. Fortunately for the owner I am a good tennant and the home will be left spotless when I vacate, but it will not be in any way due to the letting agents diligence.
There is no turning back.
http://www.foilbiz.comanyone beat this?
My mother owned a property once and I, being her lawyer son, had to argue for her that the bond should not be repaid because the tennants had ripped the cupboards of the kitchen walls and set fire to the carpet in the living room and burnt it (they were cold) … and that was after the agent said the condition on exit was “satisfactory considering the wear and tear”
Most managing agents I find look upon properties and owners as cash cows to be milked to the maximum. That is why they devised such ridiculous rules as charging owners a percentage for managing, and then have add-ons like property codition reports, bond inspections, postage and petties, sign removals, routine reports, limited only by their imagination as to what else they can charge!
They actually consider the % fees as their right for consenting to be able to charge the owner the add-ons. The % fee is budgeted as the firm’s owner take, and the property manager has to organize his/her daily schedule to routine inspect, usually unnecessarily, in order to earn their day’s wages
I agree – walk with your feet.
Agencies are valued as a business by their rent roll; so by taking your property off them and reducing their rent roll, you have devalued their business.
OK, apology in advance for being negative…
We have just sacked our agent, and then they told us that there is a 90 day notice period (standard is 30), AND that we have to pay them a 2 week rent fee per property that has a fixed term tenancy. One of the properties fixed term ran out on 3 October, but on our statement that we got this week, they’ve kept two weeks rent for that one as well. Plus, even though their fee was ‘2 weeks rent’ they’ve also charged us GST on those amounts. They’re also holding us over a barrel cos they’ve got our money, and they have deducted it from our rent! That website someone mentioned the other day – notgoodenough.org is looking better by the day.
Reminds me of my friend, who got a comcare payout two months ago (considering the damage she has done since falling at work 7 years ago, this is pathetic dollars!), – her solicitor told her the offer was $30K, and to accept it as there was not more coming, so she did, and he gave her $12.5K. Told her Comcare were arguing over the rest. Found out last week that Comcare handed over $50K, and will pay all her costs, but they are arguing about the costs at the moment, so haven’t paid them. Turns out her solicitor is hanging onto her money until he gets all of his!!! But I’m off track………
Cheers
MelSo, is there a way of knowing a good managing agent before you find out they are incompetent? It’s not the sort of thing that isn’t worth spending a bit of time on. Who knows how to tell in advance?
Hi all,
My two cents worth………
I choose to do my own property management, for two main reasons. First, as you are all saying, all you wind up doing is arguing with the property manager, rather than the tenant. After bonds have been returned to tenants, it can be difficult at that point to recover for damages. The second reason is, it can be difficult to find managers who treat both the owners and tenants with a healthy level of respect and who respond to the needs of both in an attentive way.
Now, even though I have a current ‘situation’ with a tenant (damage to property / late rent), I have arranged a visit and we are going to discuss matters and come to an arrangement. If not, a magistrate can help us decide. At the end of the day, even if I end up wearing costs due to this ‘situation’, when I do the sums am I any worse off financially than what I would have been, had I employed a managing agent? Probably not a lot, if I am any worse off at all. This ‘situation’ has occurred mid-lease. If the ‘situation’ had been allowed to continue until the end of the lease by a less than diligent property manager, would I be worse off? Probably.
I friend of mine recently had his house re-painted by two 15year old, unsupervised teenagers (mother left them to live in the house by themselves). They did a great job, including the laminated kitchen and bathroom cabinets, power points, security sensors, light fittings, aluminium window frames and the glazing. (lots of pink and bright yellow – wow!). Other issues like stains to carpets, broken tiles – the list became quite impressive. I think the thing that really turned him on the most was that the managing agent only became aware of these damages after the tenants moved out. So much for the regular inspections!!
Here’s my strategy. I buy a property. I immediately introduce myself and leave my contact details with all of the neighbours. I let them know of my intention to rent the property, and make them feel comfortable about calling me at any time. I discuss any issues that could concern us both, things like fences needing repair, overhanging trees etc. I also always include garden maintenance in the weekly rent and use my own contractor. I pay him in person, so I deliberately talk to him once a fortnight. I also have a regular maintenance contractor who I have developed a great rapport with and he visits the property prior to tenants moving in to do any odd jobs, so he is aware of it’s original condition.
I believe that when a situation of concern arrises at a rental property, the neighbours are usually the first to know. Most may make a phone call, if only they knew who to call. Garden maintenance contractors notice things like dead lawns, emptied swimming pools, broken windows etc. Maintenance contractors notice things like holes in walls, ripped curtains, burnt carpets, whilst repairing exhaust fans etc. I probably should also point out that I never have asked, nor will I ever ask any of these people to deliberately snoop or pry into the tenant’s affairs or actions, I am a firm believer in allowing tenants their privacy, treating them with respect at all times (even if I believe they are in the wrong) and I never attend a property unless I absolutely have to, or even drive past it, unless I’m on my way somewhere else.
All, I’m saying is that having a ring of people around you that feel comfortable talking to you, can alert you to problems before they get too far out of hand. Even in the face of adversity, with regard to the current ‘situation’ at hand, I feel more in control and more comfortable than what I would have done had there had been a property manager involved.
Cheers
KymHi
yes thats a good strategy – but if like me you live 500km to 1200km from your properties it can be aproblem so you almost have no choice but to use a PM.
rgds
CobraHi Cobra,
Yeah – too true. I’m not in a position where I have that problem yet. Although, it still may not hurt you to leave contact details with neighbours etc.? I think that when I do come up against this sort of thing, I’ll at least investigate my costs and time in having to travel to do inspections etc. The cost will probably be way, way, way too restrictive, but I’ll at least do the sums.
Cheers
KymKym,
Thanks for your post, I enjoyed it and learned something new from it.
Im actually on the other side of the world and use PM’s in Oz. All the more eyes and ears near your property the better !
Cheers
J
“Success comes from having the proper aim as well as the right ammunition”
Here’s another negative but it can’t be helped sometimes. My then 19 year old son, complete with long hair and the current “look”, rented a brand new 3 bed unit through a full time Managing Agent and didn’t have one inspection for a full year. He twice notified the Agent that the reticulation didn’t work and still didn’t get a visit. When he vacated the Agent asked if he would go 50/50 in putting in new plants. You can guess what he told him.
We’re currently considering what to do long term with out IPs which are thousands of kms away. Rentals are currently all with different agents and the one agent who has offered to manage all of them at a discounted rate (slightly better than other agents rates) appears to be adding more headaches rather than alleviating them. This agent currently manages one of the properties, which is due to settle tomorrow and I only found out this morning rent monies for the month have all gone to the old owner. So after I just informed my solicitor of having to redo all settlement figures to take this into account, I receive a call from someone else in the rental dept of said agent telling me the rental money for this month has been withheld. Guess it’s up to me to decide what I want to believe.
Makes me think of the possibility of managing the properties myself and just having an agent or someone near the IPs to fall back on should there be a need for a tradesperson to repair something. Has anybody done this? Have you experienced dealing with tenants is too difficult, ie they expect too much from you? Comments and suggestions are welcome.Have not long settled on my first long distance rental with first months rent already received by agent 1st oct. But guess what – they normally pay rents on at the end of the month, so they wanted me to wait till next month!!
This is qld, so don’t know if that’s the normal thing up there, but I told them that was unacceptable as I have mortgage payments due before then. Imagine – and I know they have a huge rent roll- how much money they make holding everyone’s payments for a month???The issue of property mangement is one of the most vexed I’ve come across. There’s a huge opportunity for one of the Franchis e real estate chains to offer a genuine VIP service and, of course, charge a bit more for it.
One Industry that never seems to modernise its methods is real estate. Look at it this way, they get their stock for free and sell it for about 4% of its worth and keep that money. All from a little office with no plant and equipment etc. My view is it’s a lazy persons industry.
Their property mangement is always done by an unlicensed newbie, often an inexperienced young woman who is “left to it”. My daughter did this for a year or two once. Time for a change, eh?
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