As a property investor for more than 20 years, I have a few rentals in Canberra. I want to highlight a practice that is rampant here in Canberra by Real estate agent/property managers whereby the true value of market rent is always undervalued by $30 to $40 per week on a typical 2 to 3 bedroom rental property.
This is to ensure that they get a cast of thousands at the door at inspection time. Then they go through the applications with a fine tooth comb looking for executives or professional with high income.
This is because these types of tenants usually require less management, fewer hassles and more time for them to take on additional properties to manage to earn more money for minimum work.
In the meantime 90% – 95% of the people who attended the inspection will have wasted their time unknowingly because their application will inevitably be rejected.
I am annoyed that the interest of the property owners are not represented because they are losing significant money each week in addition to the 7% to 10% (of weekly rental income) for management fees owners are required to pay each week.
This is why all my properties are managed by myself and all of my rentals are $30 more than Real Estate managed properties. As an example, I have a 2 br property in Lyneham (60 Wattle St Lyneham) with weekly rental of $360 for the last two years and currently a Real Estate agent is listing pretty much the same property for $330 per week. I feel sorry for the owners.
Advice, if you have the time rent your property your self privately or asks your property manager why is rental price less than privately listed rental?