I was wondering how you manage to get an agent who is not the one selling the property to do an independant rental appraisal for you?
What’s people’s experience with this please?
I’ve always found it hard asking them when they have nothing to gain from it.
Sparticus10,
I am assuming it is not rented. Are you planning to give the management of the property to the agent selling you the property or your PPOR (not sure what the circumstances are here)?
Your approach would not be just for a rental appraisal. In addition, you can find out about their property management service offerings.
Outside of fees, there are plenty of things you can find out about their capacity to manage your property. Given most agencies are valued on their rent roll, I would assume they would be very keen to get your business.
Have done this twice and changed PM once as a result. I don’t think you should have any issues.
Thanks Woodsman, I intend leaving it with the selling agent to manage for me, but wanted to get an independant opinion of it’s rental potential – hence the need to ask another agent for that.
Hi
Just a word of advise. I have know problems getting rental apprasials done if you are looking to secure a new property manager. How do you know you are getting the best possible service unless you shop around you maybe doing yourself out of more cashflow it does pay to talk to more than one property manager.
Trish Clark
Hi Sparticus,
I have found a good question to ask is “do you have a tenant in mind that could move into this property this week at the x dollars you have just quoted with the property in the condition it is in.”
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That will give you an idea of how accurate the rental appraisal is.
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I had a situation once where I got a written rent appraisal from the selling agent. I purchased the property and then had a meeting with the rental property manager at that same office.
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The conversation was “sorry, i could not possibly find you a tenant for this property. I have no idea why you bought the place.” Scary times.
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It all turned out alright. I moved to another property manager and had it rented in a week $10 above the original price I was quoted.
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Shop around and interview as many as you can.
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Selecting the property manager is a very important part of the due diligence process. If you have a location in mind there is no reason why you can’t select the manager before you purchase.
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Ask them what is in demand in the market
and bring them along to have a look at the property that you are thinking about buying.
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Good LuckDon Nicolussi | Mortgage Broker - Home Loan Warehouse
http://homeloanwarehouse.com.au
Email Me | Phone Me"I think of finance as a technology, a way of getting things done." Robert Shiller
Hi Sparticus,
I have sent you a PM with a Questionaire for Property Managers. Hope it helps [biggrin]
Regards,Sharon
hi i own an agency and we do many appraisals for people who are buying but not through us and are happy to do it as we hope to get the management.
Don and Liz, Yes, indeed! GRRR that same thing happened to me with one of the first three properties I ever bought. Like you I moved agents too. What I learned is that this is why you MUST get an independent rental assessment. As Bill says sometimes they will do it for free because they may get the business but even if you have to pay $50 or something it is worth it, whatever it takes to get the TRUTH.!
If your independent rental assessment doesn’t come in as well as you had hoped, use it to negotiate the price down!
cheers-
MiniThanks guys, another thought, how does an independant agent get access to the house before it is sold to be able to give you an accurate rental appraisal?
Hi Sparticus,
As mini said before most agents will do the appraisal for nothing and be happy to do it (the ones worth their salt anyway).
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If the selling agent won’t let you into the property to make reasonable enquiries (including the appraisal) then their may be a reason.
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I don’t want to get to far off the track but sometimes the properties that are harder to get into are the best bargins. Other times they are just dogs.
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Good Luck.Don Nicolussi | Mortgage Broker - Home Loan Warehouse
http://homeloanwarehouse.com.au
Email Me | Phone Me"I think of finance as a technology, a way of getting things done." Robert Shiller
Hi Sparticus10,
How does the independent rental manager get in? In my contracts I put an access clause that requires the vendor to agree to me letting my agents through the property. that way it is all agreed up front.Cheers
CDCastleDreamer
NZ Investor and Property SpotterHi Guys
Yes I use a clause that grants us access after unconditional but I think Sparticus means before such as when you are doing your due diligence.
well it is just the same as your building inspector. They will have to make an appointment with the person who has the keys (rental or selling agent) and give the tenants the right amount of notice as required by law, then they go in and do their inspection. so basically allow a couple of days.
cheers-
Mini
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