Rent my house and make the tenants live like I do ...

One of the big mistakes that home owners make when they rent out their house is that they feel like they are trying to "rent my home". This creates huge problems from an emotional perspective. More often than not, the trap for the home occupier become landlord is that they expect a new tenant to live like they did.

Tell the tenants we never used that room to watch television!

Tensions arise during an owner visit to the now rental property during the tenancy. Here the owners wearing their hat of a landlord conduct a routine inspection which is a walk through their property. At this stage the landlord has come to realise that the property is not being occupied in a way that is consistent with they way they might have expected. A perfectly satisfactory tenancy may be in place and the new residents might well be the prefect tenant ... but the emotional owner is really struggling with letting go of the past. Over reaction at this stage may prove disastrous in the long term.

A few thoughts to help a challenged owner focus might include:

1. Your home was your home when you lived in it.
2. Your home is now your house and part of contractual agreement where somebody pays rent in exchange for exclusive occupancy.
3. Your tenants will set up their home as they think fit for their enjoyment.
4. Your house, when rented out will make various homes for multiple tenants over time.
5. So long as your tenants are not damaging or neglecting your house then allow it to be their home.

Continue to remind yourself that your house has taken up a whole new function for you whilst you rent it out. Embrace the new purpose of the tenancy relationship in place and you will be sure to embrace the new found freedom you are enjoying in your new home somewhere else.

Wishing you rental success.

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Do rental management companies lack ethics and honesty?

Choosing the right rental management company is a complicated task nowadays given the large number of them offering rental management services. 

As rental property management companies begin to present themselves as being different to sales companies, it is good to remember that both must be managed by licensed real estate agents and adhere to relevant statutory requirements. In fact, every standalone office requires a licensed estate agent to actively operate and oversee the business. Is your property manager supervised by a licensed estate agent?

Rental management services are often overlooked by savvy landlords and investors in the pursuit of discounted rental management fees. Believe it or not ... some real estate agents and property managers are untrustworthy and dishonest. In fact, the Roy Morgan Image of Professions Survey 2014 (Australia) has confirmed that real estate agents rank among the lowest trusted professionals in Australia. A sample size of 644 men and women across Australia were simply asked to rate or score people in various occupations for honesty and ethical standards. Roy Morgan's survey concluded that, “Once again Car Salesman (3%, down 1%) rank at the bottom of the list – a position they have held for over 30 years. The only other professions in single digits for ‘ethics and honesty’ are Advertising people (8%, down 1%) just behind Real Estate Agents (9%, down 3%).” Number one in the rankings were nurses followed by pharmacists and then doctors. At the bottom of the scale were car salespeople (30th), advertising agents (29th)and real estate agents at 28.

Focusing on rental management fees alone will come at the expense of good quality rental management services. The classic catch phrase of, "pay peanuts and you'll get monkeys", might be a little far fetched but it does beg the question, are rental management services more important in the long run than cheap rental management fees? Given that real estate agents have consistently ranked in the lowest end of the scale of ethics and honesty it might be time that you reviewed your current services agreement with your existing rental management company. Perhaps it is time you reflected on the rental management services you have received from your existing property manager during the past year. It may also be a opportune time for you to visit some alternative rental management companies and seriously think about engaging a professional property manager from a credible rental management company who will deliver the proper and timely rental management services you deserve.

Wishing you rental success. 

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