We Promise to Lease Your Property Within 30 Days or You Receive Your First 3 Months Management Fee Free!* – Discover How Below
I was at a Property Management conference, chatting with other property managers when I asked, “How are you going with leasing your properties?” to which they reacted with screwed-up looks and groans of frustration.
It was clear that property managers in Perth are seriously struggling in this rental market… Meanwhile Our Leasing Specialists have been recognised as the best in Western Australia.
I went on to ask, “So who is doing your leasing?” The main response was “Our assistant property manager”. I went on to ask, “So you don’t have a leasing specialist?” for which the answer was “No, what’s that?”
What is a Leasing Specialist?
Simply put, a Leasing Specialist is a highly trained Real Estate Agent who focuses solely on finding you a tenant with no distractions. They are trained in all the skills of a sales agent from marketing to customer service and negotiation.
Why Do I Need a Leasing Specialist?
Worst vacancy rates in 4 years.
Perth has seen a 43 per cent increase in the number of rental properties on the market, doubling the vacancy rate to 6+%. Compounding this, the median rental prices are declining and have reached the lowest point in 4 years.
100% focus on finding you a tenant FAST!
I originally chose to create a specialist leasing role at Investors Edge after I isolated it as a big reason for overworking my property managers, causing them to burn out. They found it very difficult to work a long day and then have after hours and weekend viewings to attend.
Most property managers must deal with maintenance, routine inspections, final inspections, lease renewals, rent reviews and follow up late rental payments, all while trying to find you a tenant. So leasing gets pushed to the side and they usually try to fit it during their 9am-5pm business hours.
A Leasing Specialist can act with 100% focus on securing a tenant quickly and promptly arrange to show them through the property as soon possible, if required making a time that works for them after hours and on weekends.
They have the time during the day to process rental applications quickly and by getting back to quality tenants quickly they can secure them before someone else does.
Needing the skills of a sales agent
Upon looking deeper into it, I found that being a Leasing Specialist requires a very different set of skills and attributes to perform well at the role. In short, I believe that for the leasing role to be done most effectively, you must have the right person 100 per cent focused on delivering it.
In this market they have to be highly trained in all the skills of the best sales agent. They must put exceptional marketing together to make your property stand out. They must contact enquiries back promptly to set times that work best for them and it certainly helps if they are trained to use a leasing software system to make the best use of their time. Then there are the negotiations to handle with yourself and tenants, on price and conditions. All while giving you exceptional feedback along the way so that you can make decisions if things are not going according to plan.
So what are the benefits?
Reduced Vacancy – Saving you Money
It goes without saying that having a dedicated specialist to find you a tenant fast will reduce your vacancy costs. Consider that each day a $420 p/w property is vacant, is costing you $60!
More quality tenants to choose from
I have found not many tenants are able to attend viewings during business hours – as they are working! A Leasing Specialist will work after hours to allow those tenants the ability to view your property. This significantly increases the pool of tenants for your property.
Constant feedback on performance
Having a dedicated specialist means they have the time to call you back after every home open, provide you with reports and give you constant feedback on your marketing campaign. If we have no interest for your property, we will change our strategy to ensure enquires come in.
What should I do now?
Understand the market
Firstly, you as a landlord must adapt by understanding the worsening rental conditions. The market has shifted, and median rents have fallen by as much as 20%. So you won’t fetch what you did in the boom.
Understanding your opportunity cost
Is it better to have a lower rent leased today or a higher rent leased in 1 months’ time? Let’s do the math.
Property rent if leased today at $400 p/w
Year’s Income = $400 x 52 = $20,800
Vacancy cost = $0
Net Profit = $20,800 p/a
Property rent leased in 4 weeks’ time at $420 p/w
Year’s Income = $420 x 52 = $21840
Vacancy cost = $1680
Net Profit = $20,160
So actually by leasing it today at a lower rate, you earn yourself $640 more per annum – equating to 1.5 weeks rent!
Plus in many cases what actually happens is that you will have to reduce your rent to $400 to find a tenant anyway, so if you had done it 4 weeks earlier you would have saved $1600.
Plus at a lower rent you will have more tenants to choose from, being able to find those that have solid rental history’s, who are more likely to pay their rent on time and treat your property as their own.
Get a Leasing Specialist on your team!
After 9 years in the industry, I believe there is nothing more efficient than having a Leasing Specialist find you a tenant. If your property is coming up for leasing, give us a call to change over to our superior service and you will save yourself a lot of money and stress.
Our team of Leasing Specialists have now been recognised as the best in Western Australia with Dallas Chua recently being named the only West Australian Finalist for Leasing Excellence at PPM and LPMA National Property Management Awards.
Get Us to Lease Your Property within 30 Days or Receive Your First 3 Months Management Fee Free*
I don’t believe that leasing can be done effectively by an assistant property manager when they have a split focus on all their other tasks. So if you do not have a Leasing Specialist, consider putting us to work on your rental rescue!
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