Securing a home within Australia mean you often have to deal with an array of professionals. In the rental market space, there are a number of professionals who will work for you or work for your counterparty.
A Renters Agent is work for those looking to find a rental property while a letting agent works on behalf of the property manager who works on behalf of the investor renting out the property.
What is a Renters Agent
A renters agent is a for-hire real estate professional who works on behalf of a client seeking to secure a rental property.
This type of service is new to the Australian real estate industry. Australia in many regions has very low vacancy rates. That is, for every property that is available to rent, you may have upwards of 10 applications.
In this situation, letting agents and property managers do not need to find people, they need to be able to turn people away. If you are a tenant looking to secure a rental property, you may use a renters agent service for assistance.
There are a wide variety of services a renters agent will offer. These services are based on the needs of the applicant. Some of these services include application assistance, inspections, coaching, and complete packages.
A renters agent is a fee-for-service, where the prospective tenant would purchase the service upfront like you would if you were to hire an electrician, plumber, etc.
As explained by a professional renters agent, they often assist based on the search stage and situation of the tenant applicant.
An example would be interstate movers. People moving interstate are unable to physically inspect the property. Very often in a low vacancy rate environment, a property manager will not accept applications unless the person has physically inspected the property.
A good way around this is to hire a professional who can represent you and inspect the property on your behalf. They would liaise with you and advise you based on your search criteria if the property is worth an application
If you would like to learn more about specific renters agent services you can click HERE
What is a Letting Agent
A letting agent is a real estate professional who works on behalf of a property management entity and shows potential tenants a property advertised for rent.
Some agents will operate as both a property manager and a letting agent. A letting agent can often work in conjunction with multiple property managers to organize inspections and show potential prospects through the properties
They receive payment from the property manager for their service. At the end of a property inspection the letting agent may let the property manager know who they think could be a good tenant and to watch out for their application.
What is a Property Manager
A property manager is a person hired by the property owner to manage their investment and handle tenancy inquiries and compliance matters.
A property manager will assist the owner to determine an acceptable rental rate based on local area comparisons. They also undertake a due diligence process to vet any tenant application and organise all compliance entry and exit requirements under the local laws
Once a tenant has been chosen, the property manager is the point of contact with the tenant and works to ensure that the tenant pays the agreed rent on schedule.
If there are any issues with the dwelling throughout the tenancy, such as electrical, plumbing etc The property manager will arrange professionals to fix these issues and have the property meet the tenancy compliance requirements.
This is only done on permission of the property owner who would pay for the service. If however, the damage is not considered fair wear and tear, and done by the tenant, payment of the damage would be done by the tenant occupying the property. This payment can be done either via an insurance claim by the tenant, bond withholding, and or upfront payment.
Periodically throughout the year, the property manager will conduct inspections of the property to provide reports back to the owner on the quality of the tenants and the shape of the property.
If the tenant decides to leave the property, the property manager will organise and facilitate all exit processes. These are determined by local law requirements and often include exit photo reports, bond holding return and begin the search for a new tenant.
A property manager receives their money as a percentage of weekly or monthly rent. These rates can be anywhere from 5-10%.
If you are a tenant, your relationship with your property manager is extremely important. If you have an issue with the property and need assistance, your property manager's willingness to facilitate your request ahead of all other requests can make a large difference to your in-the-moment comfortability.
Furthermore, should you need to leave the residence, having a great property managers reference will greatly assist in you being accepted into a new rental property.
Within the property management industry, you can buy and sell your rental roll. A rental roll is a list of properties under a management contract by the property manager.
Building a large rental roll is often considered a good cash-flowing business as long as your systems, processes, and personnel are optimized to handle ongoing requests.
to learn more about how real estate agencies and property management agencies work together you can select the link HERE.
Comments