Rent Choice Case studies

Mum & Dad Investor

3 Properties

Seville Grove, Perth

Background

We started working with this owner in 2017 by looking after one of their investment properties in Seville Grove. An important consideration for this couple was minimising risk. With three investment properties, one of the ways they reduced their risk was to spread the management of their investment properties between multiple real estate agents.

This strategy did work, but NOT in the way they anticipated! It allowed them to benchmark the relative performance of the agents.

Summary:

- Three investment properties;

- Used multiple real estate agents; and

- Client focused on minimising risk.

Challenge

Their challenges started with Chisholm Circle, a property managed by a real estate agency focused on sales. The owner's initial concerns began with the lack of communication by the agent. Each routine inspection showed the property's condition deteriorating. The owner kept following up with the agent for answers, but the agent's inactivity compounded our client's frustration.

All of the above matters were minor, but the tipping point was a fence installation. The workmanship was poor, and the installation location was entirely in the wrong spot. The new fence prevented any access to the water meter!

The owner followed up with the previous agent's suggestion to move the water meter or fence. Both of these were costly, and could have been avoided should the fence have been installed correctly.

Summary:

- Property deteriorating;
- Other agent didn't communicate; and
- Fence installed in the wrong location

Solution

At the vacation of tenants, the owner decided to get Rent Choice to step in and take over management of the property. They were refreshed that we did things differently.

1. We took over the pending insurance claim for the fence. We were able to negotiate on behalf of the owner and put the fence's incorrect location back onto the insurer.

2. We negotiated an additional settlement with the insurer to install a special water meter reader (avoiding changing the fence or moving the main meter.)

3. The previous agent elected to finalise the tenant's bond. This became problematic and lengthy. Rent Choice oversaw the previous agent's bond disbursment to ensure the owner was able to claim for all repair works due to them.

4. We worked within the owner's budget to conduct repairs and improvements to the property. So that it was ready for re-lease quickly.

Summary:

- Settled the insurance claim;
- Vetted the bond claim from the other agent; and

- Completed repairs and improvements on the property.

Results

We conducted 6 home opens, showed 9 groups through the property, had 4 applications and leased the property in just over 4 weeks (33 days). We achieved $300 per week, $10 per week higher than the previous lease. The owner was able to close the insurance claim, and the property presented strikingly better than when we took over!

Most importantly, the owner does not need to micro-manage their property manager. Requests are followed up promptly, a familiar voice calls them back, and they've been reassured by our exceptional problem-solving.

Hypothetical example of owner's savings*

1. Moving the fence: ($30 per meter to remove + $120 per meter to install) * 7.5 meters = $1,125

2. Longer leasing time: REIWA data recorded December quarter's average leasing days in Perth metro to be 39 days. {39 average REIWA days - 33 days we took to lease} x $43 rent per day = $258

*IMPORTANT: The hypothetical examples above are not actual figures of the case study. These figures are an opinion held by Rent Choice and have not been independently verified. The above examples intend to give the reader an understanding of the cost of the above scenarios which did not happen, but may or may not have possibly occurred should a different path of action by the property manager take place.

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