How can great property management get me the most for my rental property
In this article, we discuss the range of tasks a great rental property manager completes on a daily basis when it comes to renting or re-renting your investment property. We include how they look after your biggest asset and the Townsville specific tips and tricks to maximising your rental return.
More than just collecting the rent?
We all know one of the primary jobs of a property manager is to collect the rent. But what is actually involved in this? Well, rent collection actually starts with education. It is imperative your tenant is fully educated about their obligations to pay rent. Including when and how much they need to pay, different ways they are able to pay, and what happens if they fail to meet their obligations to pay rent. An expert rental agent will arrange a signup appointment before your tenant receives the keys to go through all this information with them and make sure they are on the same page about everything.
The vast majority of conflict in real estate comes from a difference in expectation rather than one party maliciously causing conflict. When your property manager ensures everyone is on the same page it greatly reduces conflict and all parties have a great experience.
Receiving your rent from your property manager’s agency
After your property management agency receives your tenants rent from your investment property they need to provide that rent to you, the investment property owner. It is a common misconception that your property managers want to hold onto your rent as long as possible so they get the interest from it. In QLD any interest earned from a real estate agent trust account is actually forfeited to the government and they use the funds to maintain real estate agent compliance and prosecute bad agents. Some property managers are even able to disperse your rent weekly however a lot of owners still prefer monthly statements.
Negotiating lease terms on your Investment Property
When it comes to renting out your investment property it is often a case of “You don’t know what you don’t know”. Although there are certainly bad property managers who just put a listing online and wait for applications a great property manager will go through an extensive and highly refined process to ensure you are getting the absolute best rental applications with the best terms as well. There is a lot of psychology and planning that goes into this.
Real Estate Advertising – Where to advertise?
Advertising your property for rent is a lot more than just putting some photos online and a description. Firstly we have used data from over 20 years to pinpoint exactly where the majority of good rental enquiries come from. For example, when advertising Townsville real estate we know that 83% of enquiries come from realestate.com. Due to this, we upgrade all our ads on that platform to be premier listings meaning they’re larger and show up on the top of the page. We also know that Facebook advertising for rental properties tends to generate lesser quality applications and people that are unsuitable for the property. Due to this we specifically target certain platforms to ensure you get the best value for your marketing $$$
Real Estate Advertising – What to Say?
When it comes to writing the advertisement what you show and say makes a huge difference. Firstly your ad should include 6-8 high-quality professional photos of the property with virtual furniture. This helps potential tenants to quickly view the property and its best features as well as see exactly how they could lay out the rooms. It is also a good idea to layout the photos with a WOW photo first followed by a sequential transition through the property. Finally, you would finish with a few Townsville lifestyle shots. *It is important not to include so many photos that the tenant doesn’t feel the need to inspect the property. When a tenant inspects the property there is mutual buy-in, more on this below.
The primary purpose of the written advertisement isn’t to describe the property (Let the photos do this). Instead, you should motivate the prospective tenant with the lifestyle they would live by living in the property. This could include ” Have a cup of coffee on your spacious balcony overlooking magnetic island” or “Spend more time with the little ones with the local primary school just minutes away”.
Generating an Inspection – The key to getting mutual buy-in
The primary goal of online property advertising is to generate a lead or enquiry. Advertising isn’t a turnkey solution to getting great applications. Instead, it is an important piece of the puzzle. By generating an enquiry on your property your property manager is able to spring into action and use their specialized techniques and training to convert that lead into an inspection and then application. A prospective tenant is going to view a large number of property advertisements however on average will only attend 3-4 inspections. This is because attending inspection has a cost to them, They need to take time out of their day at a specific time, they need to travel to the property, park, inspect the property, chat with the property manager.
Because of the mutual buy-in tenants are more likely to overlook or accept minor flaws that negatively affect the property. These things can be completely unavoidable for a property owner such as a small kitchen pantry or not liking the paint colour.
Qualifying the Prosective Tenant
Property owners know the stress of having bad tenants in their property. It’s the number one objecting or concern when it comes to renting a property. It’s your property management agency job to use the latest technology and psychological indicators to minimise the risk of non A Grade tenants. This is a lot more than the typical “I got a good feeling about this tenant”.
Qualifying the prospective tenant starts at the very first interaction. The use of a detailed Customer Relationship Management program (CRM for short) allows your agent to build a profile on the prospective tenant. This means that if the tenant calls up and is really polite to the receptionist this will be noted and the alternative is also true. Obviously, this isn’t enough to act as a stand-alone in approving an applicant however a number of interactions over a period of weeks or even months go a long way in helping judge someone’s character.
Processing the Application once it is recevied
Once the application is processed the checks and research the agent completes are somewhat similar between property management companies. There are however small differences that have a vastly different effect on the outcome for the property owner.
Small changes in working are used to prevent false references and get detailed answers from the prospective tenant’s references. Instead of asking the reference if the tenant’s house was clean and tidy reword the question to “can you describe the front entrance to the tenant’s property” as this is a complex question it is a lot harder for a reference to lie about it.
Another thing we recommend is calling the prospective tenants employer and making sure they have secured employment. We have seen a number of circumstances where a tenant has recently been let go or the employment contract was only for a set period of time.
Approval and Education
When it comes to approving your prospective tenant there are a number of key steps you need to take to make sure you get the deal across the line. The wording we use for approving your tenant into their new Townsville property is, “Congratulations the owner has approved your application to rent the property on the following terms. (Lease price and length, move-in date, any rental increases, pets, people on lease).” It is really important to list these terms to avoid a station where the tenant changes their mind and wants to change the terms after being approved but before signing a lease.
To ensure the tenants secure the property, pay the required funds and sign their lease your agent will arrange a time for the prospective tenant to attend the property management agency to complete these tasks. This should be within 48 hours as until this is done the tenant can back out of the rental.
Each year Coral Sea Property Management rents over 160 Townsville rental properties including a number of units in Townsville City. Our strict and detailed process ensures only the best tenants get into your investment property. We are so certain about this we even pay their rent if they don’t*
* Ask us about our 4 Power Guarantees today. T&C Apply