Real Estate agencies configure their fees in line with the services they provide for the resources they have.
When you notice a discrepancy in fee prices it can be perilous to assume that you will see the same level of service IRRESPECTIVE of what that agent may claim. Like it or not that agency is going to claw back what they can by taking short cuts, which invariably leads to poor management, poor tenant selection, arrears, maintenance unattended and compromised inspection reports.
What Short cuts?
Property Condition Report (PCR)
Clearly the most important document in Residential leasing after the lease agreement itself.
We often take over managements from landlords dissatisfied with the level of service they are receiving. In many cases the in going PCR document is inadequate if required in a dispute situation.
Examples being: Not enough photos, poor quality photos, photos not date and time stamped, insufficient comments or not signed by the tenant.
Care in Tenant Selection.
If you think you’ve been offered a great deal on fees don’t expect much effort in this area!
More likely you will be recommended the best from whatever prospects turn up at the only open home. Cheap agents can’t afford to continually show your property and evaluate applications…they need to be paid and move on. This often happens when the agent has also over quoted on price!
Showing your Property…Open Home VS 3d Virtual Tours
Mystery shop the agents as a tenant and see how easy/ difficult it is to access their properties!
The most frustrating part of finding a home for a tenant is actually viewing the property that interests them. With a 3d Virtual Tour the prospect at least feels they have received an accurate portrayal of the home. This will offer some confidence and encouragement in applying for the property prior to seeing it directly.
Having to wait for up to a week to attend an open home where they will be herded through amongst potentially dozens of others is often an impersonal and frustrating experience as little opportunity is available to stand out as a great candidate.
Agents equally have a better opportunity to engage and evaluate the prospect from an advanced application. Owners and current tenants vacating are inconvenienced far less by constant inspections as agents can focus on quality applicants.
The virtual tour is a huge benefit to those relocating from interstate or just geographically challenged in viewing a property directly.
Arrears
No agent/landlord likes this but it happens for varying reasons…some quite legitimate, some less so and unfortunately some habitual. If you are engaging an agent INSIST that the agency draws on the tenants account and don’t rely on them paying to the agent.
Hidden Costs & Ancillary Fees
Marketing, Inspections, Court Attendance, Insurance Claims, Capital Works, EOFY Statements and Exit or File Closure fees are all examples of where agents might mitigate their loss in dealing with these items by charging outside of their fee structure.
Property Inspections
A favoured way of reducing costs by cheap agents. Common examples are: just not done, do one a year or the best of all cutting and pasting previous inspections! THIS HAPPENS!
Communication: “We never hear from them” Your agent should be calling you with updates.
