WHAT ARE YOUR MAIN CRITERIA WHEN CONSIDERING TAKING ON A LANDLORD?
One of the first things we look for is someone who is prepared to take out landlord insurance. If they are not prepared to do this, then we are not willing to be their insurance policy for them. We also have a list of things we ask them to agree with before we take them on as a client. This includes what we will do for them and what we expect them to do in return. We also have a landlord acknowledgement form that we ask them to sign.
Managing director, Prudential Real Estate, NSW
When considering a new landlord we find we want to interview them as much as they want to interview us. I want to ensure they know they will have to spend some money on maintenance and that their property must meet legislative requirements. Straight away you find out if they are going flinch at that, and obviously that is a liability waiting to happen if they are not going to do the important things to minimise risk and make sure their property is up to scratch. We don’t have to work with everybody and it is not worth it to the business just to take people on for numbers.”
Director, Integrity Real Estate, NSW
Safety is the first issue we look at. We have recently had to knock back a few landlords because they’ve had an old house but were not prepared to do the work before putting in a tenant. You have your legal requirements like OH&S to consider. You also have to know your break-even point so you know if the property is profitable to take on. It is not always the be all and end all, because you have other considerations, but as a business it is very important. Also, it’s whether we can manage the property and whether or not it is within a workable distance of our office.
Director, Starr Partners Merrylands, NSW
For us, it is all about the dollar value - it isn’t necessarily about the percentage management fee. It is more about what dollar value it will bring in for the business. We know what our bottom line is and that is how we decide whether or not we will take on a management property. There are also a few indicators that will tell you whether the client will work for your business: it’s a combination of how quickly they expect a response from you, the tone and even the language in an email.
Director, Metro Property Management, VIC
We need to consider a lot of different factors when a landlord is introduced to us and they are based around geographical and financial issues. We are determined to make sure that we are the right fit for them and that they are the right fit for us. We don’t take on just anyone who rings us; we make sure it is a win-win. That revolves around the geographical distance from the office, the quality of tenant the property is going to attract, quality of the actual property and the quality of the person.
Principal, RE/MAX Cairns, QLD