A new player in the real estate game who promises to keep paying rent to landlords even when their property is vacant is planning on setting up its business in Dubbo.
But a veteran local real estate agent says the plan is not needed in our city and property investors should read the fine print on all fees and charges when considering out of town, non-local property management schemes.
Certainty Property Managing Director Cameron Black said he wants to shake up the Dubbo rental market because investors feel property managers don't act with a sense of urgency around finding tenants, or generally manage a property as they would if it were their own.
"By putting financial skin in the game we have the same incentives as landlords," he said.
"When it comes to choosing someone to manage their property, we are offering Dubbo landlords peace of mind with our rent guarantee. They won't have to worry about vacancies or arrears."
But Dubbo real estate agent Matt Hansen said he had not heard any gripes around leasing time frames from any of the hundreds of Dubbo owners his agency manages, and he suspects the other real estate agents in our city would have equally good relationships with their clients.
"Dubbo has a continued low vacancy rate of 1.9 per cent and the fact that we start the leasing process well in advance of the current tenant vacating ensures minimal vacancy time frames," he said.
"Often, a new lease is already drafted before the existing tenant has even left the premises.
"In a single week of our normal rental open home schedule, it is common to service 20 to 50 groups of prospective tenants all looking to rent in Dubbo. Local professionals will always provide superior on-ground services."
Mr Black said he believes the incentives of property managers and the landlords that employ them are fundamentally misaligned.
"Consider that whether it takes two weeks or eight weeks for a tenant to be found, the property manager still receives their letting fee and ongoing management fee - but there is a huge difference in the financial outcome for the landlord," he said.
Mr Hansen took umbrage to that claim and said it was "untrue, and totally misguided and misleading."
"If a property is not acquiring rent, the landlord is not charged, as the majority of agents work on a fee that is based on a percentage of the rent collected, and a letting fee that is only charged when a suitable tenant is found," he said.
"Savvy investors do their sums on a 48 week calendar year to ensure that possible move in and move out periods are budgeted for.
"The Dubbo market is nationally known as an investment hot spot, with out of town and interstate interests regularly purchasing within our thriving regional hub. Investors already enjoy certainty, low vacancy rates and a selection of tenants, and have done for years. If local agents didn't have any drive in regards to leasing, then vacancy rates would be vastly different across the city."
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