REAL ESTATE TAREE
Buying. Selling. Renting.
I often wonder what people are thinking of when they ring our office and ask what our commission rate is to manage a rental property so I usually do answer their question with a question “what are you looking for in a property manager? What is more important to you, are you looking for someone to look after and manage your rather substantial investment or looking for the rental agency, with the cheapest commission? Sometimes there is silence but I honestly believe they don’t really understand the question. Let’s rephrase it, “do you think that your investment property will be managed the same and receive the same financial net profit regardless of which real estate agency manages it?” What would your answer be?
A property manager’s role is a very challenging one, they have to wear a lot of hats. These days they need to have building experience, legal experience, sales experience, accounting experience, insurance experience and excellent conflict resolution skills just to name a few. Collecting rent is actually the easiest part of the job. A good property manager will most often only come to the fore when a problem arises with your investment property and it is dealt with quickly, professionally and with minimal loss to you, the landlord. The difference between commission rates in our area is usually 2-3%, on an average rent of $260 per week equates to $5.20 to $7.80 per week. If your main concern is the commission expense, I ask you to consider shouldn’t it be what you receive in the hand ie net profit? A cheap commission could be at your cost at the end of the day.
So when choosing a property, I urge you to consider experience, professionalism and other landlord’s testimonials first, level of service you require, second THEN commission structure. To view our landlords’ testimonials click here
- Tags:
- Real Estate, Property, Housing
- Category:
- Real Estate