You have bought your investment….Management Rights. Some people look at it as in buying yourself a job. I look at it as buying your retirement. For those of you with a RLA and not a full license you are restricted to only managing those properties within your complex. You are not like a Property Manager that works for the local agency that can source properties anywhere. Generally you live and breathe FOR that complex.
If you are good at what you do there is no reason that you cannot have EVERY investment property in the complex on your rent roll. Your complex is your livelihood. Every time a Real Estate agency gains a management from your complex you are basically handing them $1000 per year (based on $250 per week rental).
I have many years’ experience in Property Management and will give you some tips on how to gain those properties back.
1) Introduce yourself. Part of your role as onsite manager is to also care take. There is nothing wrong with calling those owners that have let their properties to outside agents and introducing yourself. Advise them of your hours and reiterate that you will keep an eye on their property as it is very easy for you to do as you also live on site…..DO NOT try and sell yourself here….just plant the seed.
2) Many times when a property that an outside agent manages becomes vacant prospective tenants will drop into the manager’s office before an inspection on the assumption that they ‘must check in’. NOTE THIS DOWN. Ask the prospective tenant which agency they are meeting, what unit and also ask them how much they have it listed for. Make a note of this information and the date. A few days after this you can contact the landlord yourself and simply follow up on how the inspection went on (date) and if they managed to secure a tenant. If they did not …..This is your chance. SELL YOURSELF. Advise the landlord that you reside on the property and will keep a better eye on it, onsite managers are more approachable than agents as you all live together, you can easily assist with any neighbourhood disputes and that in this instance you will only charge half weeks letting fee.
3) Half a week’s letting fee. I was recently consulting at a complex who was telling me that ‘ohhh I forgot to charge the let fee and it doesn’t matter’. It DOES Matter. To gain a new management it may take some negotiation. Real Estate’s rarely will forgo their letting fee. This is something that you can use. For the sake of maybe $125 (half week let) you will gain a rental and approximately $1000 per year.
4) Real Estate agents have fantastic systems, procedures and can ‘talk the talk’. I think you will find that all an investor cares about is that their property is being looked after, rent paid and there are no hidden surprises. For these reasons BE YOURSELF. Believe in what you do, believe in your ability and don’t be afraid to make the follow up calls when you don’t get them on board the first time around.
If you have any questions or would like Real Strategix to assist in any way please do not hesitate to contact me.
Lauren Kropp – Director