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The big problem with rental appraisals

The big problem with rental appraisals

by Kylie Meier 0 comments
Rental appraisals

Why are sales agents doing rental appraisals? And what will it mean for property managers? 

I recently went to an appraisal. I met the owners and they were lovely and very easygoing. The potential clients showed me around the newly built property and all its features.

I always come prepared and bring a new client pack which includes our services, fees, brochures for smoke alarms and landlord insurance, comparables and testimonials which I think are gold when appraising a property.

After speaking with the potential clients for a while, I found they were very impressed with everything we talked about until we got to the potential rent.

They asked the normal question “Wow much rent can we expect each week?” I replied and they seemed shocked.

They advised me that a sales agent had inspected the property and gave them a figure vastly different –higher and more unrealistic – from mine.

I asked them if the sales agent had told them how they came to that figure or their reasoning behind it. The clients replied, “Not really, they didn’t show us comparables like you. They [just] told us that we can easily get that amount.”

I think the sales agent was quoting high figures in order to get the listing.

Time after time, I have been to appraisals and clients get their properties appraised for a sales value and a rental value, but it is the sales agent who does the rental appraisal.

I would only ever get a property manager or a BDM to do a rental appraisal. We know the leasing market as we handle it every day. We also have the knowledge to provide the landlord with information regarding current legislation, what landlords must do and what tenants are expected to do. I would never do a sales appraisal as I would have one of my sales colleagues come along with me to do it. Sales agents should do the same thing and bring a property manager or BDM from their office with them.

I ended up listing the property as the owner appreciated my honesty and wanted to be realistic with rent. I believe there is no point listing a property that you have overpriced and have it sit on the market for weeks. It not only makes you as an agent look bad but it makes you look inexperienced.

Sales agents are sales agents and are separate to property managers and BDMs. You should only get the specialist you require to look after your property if you want to sell or lease.

Choosing the wrong type of agent can cost the landlord a lot of money. If a landlord has a good experience with you, they will tell others. If they have a bad experience with you, they will always tell others. Referrals and reputation in our business are two main key factors in succeeding. Why ruin that?

The big problem with rental appraisals
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Kylie Meier is a licensed real estate agent who has developed a strong reputation within and around Sydney’s eastern suburbs as a senior property manager for over 13 years. Kylie is now packaging all of those hard-earned skills, knowledge and experience into a new role as business development manager at MyPlace Estate Agents Zetland.

Kylie started her career in real estate at a young age and has consistently received many accolades. Winning top awards such as Property Manager of the Year nationally for Outstanding Property Management two years running and also winning the Property Management Chairman's Club Award - a prestigious award achieved in her previous role.

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