My property manager was pushing for me to increase the rent on my property by $100 a week (about 22%) for the next renewal by my clients. Like really pushing for it. It’s insane because the house is not worth anywhere close to that amount of money. I own it and I wouldn’t have bought it if the repayments were anywhere close to that, though unfortunately they are now. I said no and said only a $20 increase, because then I will hopefully cover costs. The mortgage is about $60/week less than the rent now, but once you throw in insurance and fees I’m probably going to lose a bit of money.
Yep, commission based on rent price. They said if the current tenants can’t pay it they will have no trouble finding someone that will. Beginning to see why real estate/property managers are looked at in the same way that used car salesmen are.
My property manager was pushing for me to increase the rent on my property by $100 a week (about 22%) for the next renewal by my clients. Like really pushing for it. It’s insane because the house is not worth anywhere close to that amount of money. I own it and I wouldn’t have bought it if the repayments were anywhere close to that, though unfortunately they are now. I said no and said only a $20 increase, because then I will hopefully cover costs. The mortgage is about $60/week less than the rent now, but once you throw in insurance and fees I’m probably going to lose a bit of money.
Do they get paid on a % commission? More money for them if rent is high.
Yep, commission based on rent price. They said if the current tenants can’t pay it they will have no trouble finding someone that will. Beginning to see why real estate/property managers are looked at in the same way that used car salesmen are.
“A rising tide lifts all boats”.
They can then justify raising rents for anything else in the area.
Yep that was one of their main points - “other homes in your area are charging this much”