Need some advice on what to do.
I’ve recently finished renovating a property in a rural town and it’s finally ready to rent out after months of blood sweat and tears. Trouble is, it looks like I’ve already lost the race before the gun has even fired.
This town really only has 2 major rental management agencies and I’ve contacted both. The first one they were all happy to give me their brochure and sales speal, and I was quite impressed. The managing agent went in for an appraisal and wrote me an email on what things to fix and finalize before it could be tenanted and even gave me a rental $ figure on what I should expect…so I arranged for those fixes and requested a re-appraisal. After some chasing up, I received an email reply from them simply stating that ‘unfortunately, we are unable to assist with managing your rental property’ I replied back and asked what the issues were – and she replied straight back stating that the rental market has been flat and has been for months.
In my opinion, that is just a nice way of rejection covering up another reason.
The second real estate agent I contacted sounded really enthusiastic about my completed renovation (I actually showed him through the property back when I was there renovating it and he seemed quite impressed with everything at that stage). After contacting him last week, he said he’d visit the property later that afternoon and get back to me. I hadn’t heard from him for 2 days (plus the weekend) so I decided to call him first thing when I got to work. As expected, it rang to voicemail and I left him a message to call me back. Still no call back by the end of the day. I called the office around 4:30pm and the receptionist put me on hold only to return and say he was ducking out to a meeting for the rest of the arvo and he’d call me in the morning. Well guess what? Haven’t heard from him, and it’s now the next day.
Now, this property has had some pretty major works done and whilst it’s not the Taj Mihal or The Block, it is tidy, with new carpets, a whole new lounge rooom re-done, polished hallway floor, new tiles in kitchen, built in robes, large block of land, close to shops and literally across the road from a school. When I bought it, it was an absolute dump, but now it’s very tidy and would suit a family.
My best guess is that these agents got cold feet when they went into the house, but it just doesn’t add up. The rental amount the first agent gave me was quite high and I’d be happy with what she proposed. I just don’t understand why the U-turn after the re-appraisal.
Could it be that there is something underlying that they don’t want to be honest with me about? Fearing that I’d be really disappointed if they told me?
I feel like emailing the second agent and asking him to be brutally honest on what the issue is – (if there is any).
I’m really stressing out because if these 2 agents won’t manage my property I have little hope with the other agents (if they manage at all)
Options? Ideas? Advice? HELP :(BennyModerator@bennyJoin Date: 2002Post Count: 1,416
It can drive you nuts – but don’t let it. First off, I’d say to check what you can of their words (e.g. call, or have a friend call, asking questions about “availability of houses for rent” – get as much data as possible, even invite them to post you stuff). What I am thinking is to determine the rental vacancy rate – how many homes available vs their total rental role.
Chcek for values, rents, in that town using Online sources. See how much you can glean from that data. Check out the value of the property (to see if the first agent is having you on re its value). etc, etc Maybe even call the other agents to glean what you can. Ask if they have properties (like yours) available for rent, and how much?
Turn your aggro into action and see where it leads you…. Good luck,
BennyhanoixuaParticipant@hanoixuaJoin Date: 2007Post Count: 19
Can you manage yourself? Anything can be rent only at what price. If your price is significant lower than the other similar property, it will definitely rent out. For a start may be lower price then increase to the market price when the market improve.Kinnon BellParticipant@kinnonJoin Date: 2014Post Count: 151
What sort of area is the rental in? Is it in a low socioeconomic area where the agents get a lot of problem tenants? That may be why they are no longer taking on new rentals as often they’re more trouble than they’re worth to the agent.
Thanks for the ideas Benny. I have checked sites like sqmresearch and abs.gov.au and the numbers aren’t bad at all. Vacancy rate is 1.8% and generally lowers down to around 1.4% around December on average for the last 3 years. The properties around it are very sound and next door is at least a million dollar property. I am getting it valued as we speak so that should provide a better insight.
hanoixua, I have thought about managing it myself but with all the horror stories I’m reluctant to give it more thought. Now that I’m put in this position, it might just have to be an option. Any tips or advice?
Kinetic, that sounds plausible and I get the feeling it is about this – the fact that it’s ‘more trouble than it’s worth’. The funny thing is, when I look at this agent’s property for rent listings, they are FAR WORSE than my property, with significantly lower rents. My property surely would not attract this type of clientele.
The town is of moderate socioeconomic status – rent is on a good number considering where it is comparable to big cities. A new shopping centre was opened no less than 6 months ago nearby and the country ‘stigma’ of derelict culture is not present in this area at all. It just doesn’t make sense!
I am considering contacting the second agent to give me some brutal feedback. Whether or not he will take my calls or respond to my emails is a different matter.
thecrestParticipant@thecrestJoin Date: 2004Post Count: 992
- This reply was modified 7 years, 4 months ago by dezability.
Could you approach the agent you bought the property from ?
Also see the other agents in town even if they’re small and less significant.
Send a direct email asking all agents under what conditions they would manage the property.
Ask if they would like to sell the property for you when you decide to sell it.
How far to the next town or REA ?
Sounds sus though.
The agent I bought it from do not do rental management any more.
Yesterday I rang two other agents, (one of them didn’t even pick up the phone!) and the other took my details down….time will tell.
The next major town is around 6 hours drive. (major city)