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Real Talk For Property Investors
Real Talk for Property Investors by EXCLUSIVELY MANAGED; the podcast that pulls back the curtain on the real world of managing investment properties in Brisbane.
I’m Samantha Eason; Principal and Licensee of Exclusively Managed, Property Management agency located in Brisbane. Each episode, I share the untold stories, hard lessons, and everyday realities that come with property management, from difficult tenants and dodgy maintenance to untrained managers and costly mistakes that could’ve been avoided.
This isn’t a sugar coated industry podcast. It’s honest, practical, and straight to the point, with a few laughs along the way. Whether you’re a property investor, landlord, or simply curious about what really goes on behind the scenes, Talking Property Management gives you the insight you didn’t know you needed.
I’ll be sharing real life experiences, expert advice, and proven strategies to help you avoid pitfalls, protect your assets, and get the most out of your investment.
And who knows… I might just be talking about your property manager in the next episode.
Real Talk For Property Investors
Are You Making the Same Mistake as Every Other Landlord?
Ever wonder if your investment property is actually performing to its potential? You might be shocked to discover the truth.
Many landlords are unknowingly hemorrhaging money, not in small drips, but in gushing streams of $50 to $100 per week below market rent. That seemingly minor discrepancy compounds dramatically over time, potentially costing you $26,000 over a five-year tenancy. For multi property investors, these losses can easily exceed $50,000; enough for a substantial home renovation or even a deposit on another investment property.
The culprits? We will discuss in depth in this episode!
This episode will have you thinking, do you need to review your current arrangements today and ask yourself: how much are you willing to lose before making a change?
If you have any questions or scenarios you would like us to discuss on an upcoming episode, please email samantha.eason@exclusivelymanaged.com.au or visit https://www.exclusivelymanaged.com.au/
Donate to the sleepbus foundation here.
https://www.sleepbus.org/services/sleepbusfund
Hi, it's Samantha Eason here and I'm going to be honest, I've had enough. This week I've been doing some cold calling and, I'll be honest, it's not my favourite thing to do but it's necessary, and every time I do it I uncover basically so much that's wrong with our industry. And yet I know this, but it still genuinely shocks me. This week has been no exception. I spoke with a few landlords across different suburbs and the same things kept coming up again and again Properties are under-rented and many are using agencies that aren't local to their investment property and landlords who think compliance is a strategy. I'm going to be very honest. It's not, and I'll talk about the $100 a week problem. So many landlords I spoke with this week are missing out on serious money and in a few cases properties were $100 a week below market rent. $20, not really a concern. $40, again not really a concern. But most of the people I spoke with not all, but most they were from $50 to $100 a week below market, and I'll break that down. $100 a week equals $5,200 a year. Over a five-year tenancy, that's $26,000. If you own two properties with the same issue, you're talking $52,000 lost rent, and this is not hypothetical. This is actually happening.
Speaker 1:I've spoken to these landlords. They've been unknowingly throwing away the equivalent of a brand new kitchen and bathroom and even a deposit on another investment property. And what exactly is the compounding effect on this Now? Now think about this in terms of growth. If you'd invested that $26,000 into offsetting your mortgage, you could have saved tens of thousands in interest. If you invested it elsewhere, you'd be compounding returns. Instead it's gone. And it's gone because your property manager didn't push the rent when they should have.
Speaker 1:And why does complacency cost more than vacancies? Easily put, many landlords are terrified of losing a tenant. That'd rather keep the rent $50 under market than risk a vacancy. But I'll tell you the truth Even if you had a two-week vacancy at the correct market rent, you'd still come out ahead. Current rent is $600 a week, market rent $650. The difference is $50 a week, $2,600 per year. Even if you had a two-week vacancy and I'll be conservative $1,300 lost If you're still $1,300 better off the year at the correct rent. That's why compliance is not a strategy. Playing it safe is costing you thousands.
Speaker 1:Another wonderful theme this week landlords choosing agencies that aren't even local. And I'll say it bluntly this makes no fucking sense. If your agent doesn't live and breathe your local market, how can they possibly price your property correctly? The other thing is, if they're so far away from the property, they'll go out of their way to under-rent it. So it's rented quickly, so they don't have to do the drive. But that aside, how can they advise you on demand trends, tenant expectations, local competition?
Speaker 1:It's not just what's online, you know, with the other properties. There's so many things to consider. And here's an example. A non-local agency might look at North Brisbane as one rental market, but I know that Burpingarra East moves very differently to Kalinga and Kalinga moves very, very differently to Narangba. Even streets in the same suburb can perform differently. Trust me, looking to buy in Kalanga, I'll tell you where to avoid and where to shop. A non-local agent won't know that the school catchment is on one side of the highway, is a tenant magnet, while the other side struggles. That knowledge gap can cost you thousands.
Speaker 1:My absolute favorite the quantity agency trap. Then there's the big franchise or volume based agencies. On the surface they look safe, they look great, they've got lots of properties under management, maybe a cute bear on a tv ad from 20 years ago, large, bold, bright sign blinding you as you drive down to the shops. But that's the problem Too many properties per manager, constant staff turnover, no personal accountability, no personalized service and results. So what happens? Your property gets lost in the system, rent reviews don't happen properly, maintenanceance gets delayed, tenants slip through arrears processes Trust me, this happens so many more times than you'd want to believe. And it always happens with the big agencies. And when you call, you don't even know who your property manager is.
Speaker 1:This month, a quantity-based agency runs on volume. Their business model is about stacking numbers, not maximizing returns, literally. Because they're able to cheapen their fee, they care more about the numbers, the quantity of clients they have, than the quality and the quality of rent those clients get. And when you own an investment property, that is a dangerous game. I'm all for risk, but not where it matters.
Speaker 1:As an investor, you need one thing above all else in your property management stability. When you have a property manager who knows your property, your tenants and your goals, they can be proactive. They'll know when your hot water system is aging out before it fails. They'll pick up on small tenant issues before they become big problems. They'll track the market and tell you when it's time to adjust the rent. Stability equals performance. Instability equals risk.
Speaker 1:And what don't you exactly want to hear right now? You are not treating your investment like a business. Stop treating it like an afterthought. Don't hand it to big agency and assume everything is fine. Would you let a stranger run your business without checking the numbers? Yet that's exactly what's happening when you don't hold your property manager accountable, and the numbers prove it $50 a week loss rent equals $2,600 a year. $100 a week loss rent equals $5,200 a year. Deferred maintenance a $200 fix can turn into a $2,000 repair. Poor arrears management one bad debt can wipe out an entire year's profit. This isn't small money. This is the difference between being an investor and being a landlord, and I've said that before.
Speaker 1:If you're listening today and you suspect you're under-rented or undeserved, here's what you need to do Review your rent today. Compare it with three to five current listings in your suburb. Ask your agency what their average portfolio size is. If it's over 120 properties per manager, that is a red flag, and it doesn't matter how many assistants they have and include within the team. Check how they push you to be ahead of the market. If they can't answer this, you have someone who has no clue in what they're doing.
Speaker 1:Lost. Ask who your property manager is and if you've had three different managers in the past two years, your property has no stability. Your tenants have no stability. Your growth has no stability. Please choose local. Only a local agency knows the micro market your property sits in.
Speaker 1:I've said it before your property is likely the biggest asset you own outside your family home. It deserves more than a tick and flick approach. It deserves strategy, focus and accountability. Stop letting complacent agencies bleed you dry, stop thinking that being compliant is a strategy and stop handing your financial future to an agency that doesn't even know your suburb. The difference between an average property manager and a high performing one is not a few phone calls. It's tens of thousands of dollars over the life of your investment, and the question you need to ask yourself is how much are you willing to lose before you make the change? Thank you for listening to this episode. I'm Samantha Eason from Exclusively Managed. We are a boutique agency located in North Brisbane and I might be calling you with regards to your investment property today. So let's see if we are finding more and more issues with our local investors.
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