Webbj
Good post Webbj showing common sense....however don't expect a repsonse from Japon. He skirts around questions even though they are directly related to potential revenue.
I am not one bit concerned about rnt threatening our Property Management industry as I have even spoken to them about it and its not on the agenda. Property Management is a high touch low margin business. If I were an investor I would be looking more towards a private sale company. Why ? In our area your ave sale commission is about $13,000. Sometimes we can sell a property within days, others weeks whilst a few take months. Our ave Property Management fee is $1500 / year which takes a lot more time and effort to manage. A decent property manager will set you back $70k whilst the various other overheads involved soon eat away at your profits. Would I sell my own property privately ? YES. Would I mange my own property or pay out $1500 / year for this service which is tax deductible, includes end of financial year statements ( which an accountant would charge an arm and a leg for) the shift of risk from myself to the agency if anything goes wrong? NO WAY.
I have laughed at comments on this thread particularly Jalons. Quoting RNT are charging agents from December - well guess what ? They are not.....guess why ???? Well this is very simple, they do not want all their listings to disappear from their website. Why not - Well this might be because of this big high profile TV advertising campaign that everyone was saying was starting in January ( yet to see an ad )...wouldnt want to spend all that money and then have consumers log onto the website to see no houses to rent. Then rent.com would be left with a tiny tiny piece of the private landlord market which is nowhere near as big as what I have seen quoted on this thread. And they will not pick up all this market if they charge the figures quoted here I think at best would be 15%. WHY? Because you can use other companies for substantially less that will have you appear on all the MAIN PORTALS where at least you get ENQUIRIES. You will come to realise ENQUIRIES as the magical word which I haven't even seen mentioned..........In a nutshell ENQUIRIES = PROFIT to RNT not vistit number to their website.....
Webbj - A leading brokerage firm leaked information regarding REA'S intention to become a disruptive company and deal direct with sellers / landlords. Their was a huge backlash from agencies and REA very quickly backed away. Why? They know the numbers, they are a clever bunch you know.
Take a look at the last company who were meant to be listing on the asx to disrupt us.....they come out last week and said they had changed their mind due to a lack of interest - Google HELLO
In our area before that there was a company called Go Gecko who were offering discounted commissions. They are still operating however the principals I know have changed back to traditional selling.
You can view info here
http://globalinsolvency.com/headlines/go-gecko-property-franchise-in-administration
Why might this happen??? Agencies have been operating since day dot, the commission rates are there for a reason - cover outgoings, cover risk and hopefully earn some money at the end of the day if you are good enough.
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