RENTAL PROPERTY INSPECTIONS AND RENTAL APPLICATIONS
I have almost heard it too many times to mention it!
As a real estate agent, all you do is open homes, choose an applicant and collect rent. If only I had a dollar for every time I have heard those words spoken.
It is however an interesting perspective. Quite obviously, those key tasks are not all that is involved in professional property management services, but it made me take a closer look at the resources and time that is in fact committed to these real estate processes.
Real and Raw Data
During the last financial year from 01/07/2020 to 30/06/2021, First National Neilson Partners achieved the following:
1612 Private Inspections
Allowing 45 minutes per inspection, including travel time to and from the premises, our team spent approximately 1209 hours or nearly 32 weeks performing open home inspections. We have not made any inclusions for the occasions when two staff members were required on site.
4754 Property Applications
Not every rental application can be approved however each one must be assessed for suitability and considered for approval. If we average timing to 30 minutes per application to review affordability, perform history checks, obtain work and rental references, access National Tenancy data information (and much more), we have potentially spent 2377 hours ascertaining the best applicants for our rental property investors. This equates to 62 weeks’ worth of work.
291 Properties Were Leased Last Year
This equates to approximately 24 properties leased per month. Considering data entry, utility connection, lease preparation, bond documentation, renter induction, and a fully comprehensive condition report, the set up of a new tenancy takes about 4 hours. Collectively, we spent in the vicinity of 1164 hours or 30 weeks doing just that.
Bearing in mind this doesn’t include marketing, discussions with Rental Providers, reporting, the arrangement of appointments and scheduling, advising all applicants of the outcome of their application, and so on. We haven’t even started to manage the tenancies yet!
I guess we will have to look at the rent collection factor in a future article.