The market is doing well, properties are selling quickly, and stock is running low. Now in this situation you can guarantee agents are going to start getting desperate for more listings. Where are they going to get them? Wherever they can! They won’t limit themselves to owner-occupiers, they’ll take aim at investors as well.
Are you a sitting duck?
As a principal and owner of a rent roll you are sitting duck, you are vulnerable to agents picking at your investment by calling your landlords and offering them big money/good prices to sell their investment properties.
But they are your clients and if they decide to sell you are the one who wants those commissions, not just for the income, but because you are losing the investment value on your rent roll. If you don’t make the sale you lose out twice. So be proactive, don’t wait for other agents to poach your clients – get in touch with all your landlords personally and give them an update on the state of the market and let them know that if they are looking to take advantage of the potential window of opportunity that is presenting itself then you would be happy to facilitate the sale and make certain the tenants are not too disrupted. This will ensure you get first bite at the cherry and if you can find an investor to buy the property, you could then get the double whammy and keep it as a management as well!
There has been a fair bit if disruption in the rental market lately that has impacted landlords and there’s likely to be more.
With COVID emergency legislation allowing tenants to stay and not be evicted, as well as prohibiting rent rises on existing tenancies, landlords may decide it’s all too hard and want to sell and make the most of the improving market. They may have lost their job or had reduced hours due to the pandemic and want to sell. You won’t know if you don’t give them a call.
On the other side of the coin, the government incentives are making building very attractive and we may also soon see tenants vacating rental properties and the heat may drop out of the rental market. And when the emergency legislation ends and landlords can increase the rent to meet the market tenants may move on because they don’t want to, or can’t, pay higher rent. These factors could also motivate landlords to sell.
2020 has shown us that nothing is permanent, and things can change in an instant. It’s also shown us that to survive and thrive we have to get on the front foot and look after our investments and safeguard our future. The funny thing is it is so easy, all you have to do is pick up the phone and start the conversation with your landlords.
If you want to know more about protecting your business through changing market conditions and disruption, make sure you register for my upcoming Real Estate Brilliance seminar or webinar.