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How to avoid the most costly Mistake 90% of Owners make when choosing a property manager.

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In the absence of other information owners often choose the manager of their property based on the percentage management fee the agent Quotes. 

 

This is almost always a VERY costly mistake.

 

Beware!!

 

Agents Dirty Little Secret number 1

 

The Largest Avoidable expense you will ever have from your rental property is NOT the management fees your agent charges.

 

The number 1 avoidable cost facing owners is rent income lost through vacancies.

 

Just 4 weeks vacant adds up to around $1500 in lost revenue out of your pocket.  (This is around the entire cost of most agents average management fees for the YEAR!!!)

 

Agents Dirty Little Secret number 2

                                                   

 This extra cost of vacancy can be reduced to almost nothing by good management!

 

 

Just ask every agent you are considering as managers for your valuable property – just one simple question.

 “What is your vacancy rate?

 

If the agent does not know the answer immediately or cannot provide proof,  it may be  time to rethink your agent?

  

Once you have your agents annual vacancy rate you can truly compare agents performance based on what will go in YOUR POCKET! 

 

 According to RTA Statistics Most Townsville agents average around 4.5 % (Source RTA with link)

Some are better,(Wink)  Many are worse!

 

 

You want to know exactly how much you really get Right?

Its easier to work out than you think

 Click here for our FREE fees calculator

This is the formula the other agents don’t want you to see. By using this formula you can actually compare the true cost of management without all the confusion.

 

Our fee calculator allows you to compare the true cost of management without any confusion and truly compare apples with apples.

 

In order to use the calculator You will need.

  1. You rental amount per week
  2. Your current or proposed agents vacancy rate

 (Or the total number of days your property was vacant in the last 12 months.)

  1. Your current or proposed agents management fee
  2. Your current/proposed agents admin and advertising costs for 12 months

Beware! Here Are Two Dirty Little Secrets About Property Management Costs That Agents Are Hiding From You…

  

Agents’ Dirty Little Secret Number 1:

 

The number 1 cost facing owners is rent income  lost through vacancies.  

 

Just 4 weeks vacant adds up to around $1500 in lost revenue out of your pocket.  (This is around the entire cost of most agents average management fees for the YEAR!!!)  The table below shows you the differences between 0% vacancy, the Townsville average agent’s vacancy of 4.5% and an awful vacancy of 8%.

 

Agents Dirty Little Secret Number 2:

 

 

 This extra cost of vacancy can be reduced to almost nothing by good management!

 

Just ask every agent you are considering as managers for your valuable property – just one simple question.

 “What is your vacancy rate?

 

If the agent does not know the answer immediately or cannot provide proof,  it may be  time to rethink your agent?

  

Once you have your agents annual vacancy rate you can truly compare agents performance based on what will go in YOUR POCKET!    If want to work out  this figure for your property just enter the number of days your rental property was empty last year into our calculator above.

 

  According to RTA Statistics,  most Townsville agents annual vacancy is around 4.5%*

 *(Source Qld Government RTA Statistics)    

(Coral Sea Property had an average Vacancy rate for 2011 of 0.89%!)

 

So – the largest avoidable expense you will ever have from your rental property is NOT the management fees your agent charges.   In the absence of other information, owners often choose the manager of their property based on the percentage of management fee the agent quotes. 

 

 As you have just seen in the calculator above, this is almost always a VERY costly mistake.  

 

Management fees make up one small part of the investment equation.   The difference between an Agent quoting 9% and an agent quoting 7% seems large BUT here is the reality:

 

 On  a $350 per week property the difference of 2% in management fees adds up to just $7 per week…

 

By choosing your agent based on this figure alone,  you could cost yourself hundreds or even thousands of dollars for many years.   

 

Don’t be fooled by agents quoting low rates to “suck you in and sign a contract”, use our fee calculator to work out the TRUE cost of managing your property before you sign.  (You may also want to consider whether any prospective agents have the systems, the skills, the people and the confidence to offer any guarantees.  For ours – CLICK HERE)

 

Call us now or just click a link below to organise a quick chat with our team to find out if we are a potential fit for you.  

 

Phone 07 4724 1723 OR Click Here to email us OR Click Here for a FREE Market Appraisal

 

Click here to view a detailed schedule of our fees

What to do next?

1.  Subscribe to the Coral Sea Newsletter.

 

 

2. Discover how much your property should be renting for. Click to find out.

 

 

3. Switch to Coral Sea… You'll make more money. Send us an email.

Or Call us Now on 4724 1723

 

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