What is a Good Rental Manager/Agent Worth?

.  .   .  .  .  .  their weight in gold. The two main aspects of good management for real estate properties and investments are financial return and property care and maintenance. Beyond that there are many roles a good manager plays.

Taking Care of Business

Rental Management/Agent Roles – different hats

Other than simply managing your rental, a good rental agent has several other roles to play.

• Acting as a middle man between the tenant and the landlord, the agent takes care of all aspects related to leasing or renting property. From looking for an appropriate tenant to signing the deal; a good agent takes care of it all and the owner doesn’t have to lift a finger
• A good agent ensures that the landlord entrusts them with complete authority to provide all management facilities to the said property
• The ultimate goal of a property agent is to maintain a balance between the landlord and the renter in keeping them both happy under all circumstances.
• The agent worth his/her salt maximizes the revenue stream from the property and minimizes costs and repairs.
• A really good agent is also a marketing manager making sure the property is easily found on the internet to appeal to both the local and international market.

Duties of Rental Management

• Posting and showing vacancies
• administrating leases and contracts
• Collecting rent
• Handling all maintenance issues
• Handling all rental issues
• Supervising the background checks on the tenant verification forms

An agent worth his/her weight in Gold Provides:

• Freedom for you to handle other aspects of your life and business
• Help reduce expenses and optimize earnings
• Provides all the assistance you might require as a property owner
• Deal directly with the property and ensure that it remains well maintained
• offers complete peace of mind
• gets the best rates for your property within a “market friendly” price range and negotiates the cost of all add-ons and extras
• makes sure to provide ongoing inspections to assure your property is enjoyed responsibly

If you are lucky enough to find someone who provides a personal touch you are getting someone who treats the place as if it were his/her own. This is important as they won’t just let anybody rent.

The best case scenario is finding someone not only with a personal touch but also who is internet market  savvy and has their finger on the “pulse” of the market in general. Being a great people reader is also a big plus.

This is a rare profile of someone is this type of service – but they are out there so look!

 

What is Your Property Worth?

Harbourside Condos @ Songhees

 

In a previous article I talked about the current supply shortage of furnished executive housing and how that is now having an upward push on rental prices now and in the near future.

So what is your rental property worth in this current market?

There are essentially two major markets for furnished corporate housing. One is what I call “local” and includes the city we live in and the rest of Canada and the other is “international” which is essentially everywhere else.

 

 

Local markets are more constrained in pricing than the international market which are often world-travelled executives accustomed to higher prices found in other major cities. This is our ideal tenant as they will pay more for your property (although they may also expect more).

When in comes to prices notwithstanding the above – location is key. In Victoria there seem to be 3 location tiers in terms of popularity and price.

TIER ONE 

This is the most popular location requested, mostly by the corporate and business sector with a younger demographic and no kids or pets:

• downtown central and Humboldt Valley
• Fairfield close to downtown
• For Families: Oak Bay, Gonzales, Rocklands

Rental rates range from $2350-3000/month for long-term one year leases and $2500-3600 for leases less than one year for the average 2BR condo in the above locations.

Average furnished home rental is $3500-4500/month for families renting in Oak Bay, Gonzales or the Rocklands. These properties offer more bedrooms, space and are located in premium neighbourhoods close to good schools.

Typically, units renting at these rates are newer, with high end finishes, wood floors, parking and attractive amenities. Regular scheduled cleaning service is usually expected and factored into the rates where possible.

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TIER TWO

This area is the second in popularity and is sought after by retirees coming to Victoria to buy property, relocating families and all others who are flexible when it comes to location.

• Songhees and Vic West
• Old Town and China Town
• Some parts of James Bay
• Saanich

Rental rates in these areas tend to be a bit lower than downtown with exception of waterfront or penthouses.

Expect to see rates ranging from $2400-2850 for one year leases and $2500-3200 for shorter term stays.

Even then it may be difficult to get people to take on the “Blue Bridge” – surprisingly there seems to be a lot of resistance to that.

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TIER THREE

Basically, every where else! Anything not in the above sectors of town will struggle to get executive and corporate renters. They may still be useful for shorter term rentals until something else opens up. I find that to attract quality renters these properties have to be very price sensitive.

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If your place is located in Tier One it would rent within the first week of being on the market during the hiring seasons which typically are spring (February through end of May) and again in September.

Tier Two could take up to 30 days (or more) even in the hot season.  Generally if the place sits more than 60 days on the market it is probably priced too high.

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