Bees Nees City Realty
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Posts Tagged with tenant marketing Brisbane

Posted by admin on 26 September 2011

Searching a large real estate portal this week we were growing increasingly frustrated by the time it took for the page to load. In 2011 we’re all supersonic, attention-deficit, time-poor freaks with our broadband and expect quick connections. But the delay on this site wasn’t loading the property details, it was the massive banner ads that dominate the pages. These guys run a business and there’s only so many agencies in Australia to pay them a subscription. We understand they need revenue. But if you’re like us you want to spin through the listings quickly and get the info you came for.

And luckily there’s a great new alternative. The Real Estate Institute of Queensland has launched our own search portal REIQ.com Our members own the site and we don’t need big, data-heavy ads from banks or mortgage brokers. So tenants and home buyers get a clean, fast-loading portal. The site already has more than 75,000 listings on it, making it the largest Queensland-based real estate portal.

Bees Nees principal Rob Honeycombe is a Director of the REIQ so we’re naturally big supporters of the site. Rob says the real benefit for buyers and tenants is the site’s industry ownership. “REIQ member agents are talking to them daily and we hear the feedback on what they want from a real estate portal. REIQ.com is the result of that and with agents owning and controlling the site we can make sure it stays relevant and fresh.”

REIQ.com are running a competition to celebrate the launch and you could win $20,000 by visiting the site and entering before 5pm this Friday. Here’s the link!

What can the REIQ do to improve the site? We’d love to take your comments back to them.

Posted by admin on 15 June 2011

Over the past couple of weeks we’ve surveyed tenants living in Brisbane’s inner city, asking them to rate the importance of 22 features of rental homes. Tenants were reminded that extra features in a home do cost them more in rent, so the survey responses are a collective ‘shopping list’ – the items they’d like to have as their budget affords. It gives landlords a better insight into buying and improving their investment properties.

The most important item in a rental home:
Outdoor living space. Even with a dose of cold weather during the survey tenants say they want an area to get outside. Balconies, decks and courtyards are a bit hard to retro-fit in your rental property but it’s food for thought when you’re buying your next one. And it follows that improvements you make to those outdoor areas, for example adding a roof over a deck or even some simple privacy screening, would be welcomed by your tenants.

Clean and modern:
You’d expect tenants to want a modern home and they do. Three of the top 7 features they seek relate to the condition of the home with “a modern home or one in great condition” scoring a close 2nd on their overall list. Tenants are prepared to put their hand in their pocket to have modern fittings. We regularly hear tenant feedback that rental homes need fresh paint, new carpets and other simple updates. As a landlord it can be hard to keep an eye on these things but they have a clear impact on your rental return.

And the features tenants won’t pay to have:
The wooden spoon goes to gymnasiums, closely followed by swimming pools. Those of you forking over big body corp fees to maintain these items might be feeling a little frustrated with this finding but it didn’t surprise us. We’ve been surveying tenants since the late 1990’s and both items consistently rate amongst the least important in a rental home. Buyers and re-sale interest in them might be another story.

If you’d like a copy of our full report for landlords just email info@beesnees.com.au and we’ll forward it on. How tenants choose their rental home’s location and plenty more info is included. Keep in mind the surveyed tenants mostly live in apartments in suburbs within a 5 kilometer radius of the CBD so the findings should be read in that context.

Posted by admin on 3 December 2010

Did you know 70% of home buyers seek the assistance of a real estate agent to help them find the right property?

The Real Estate Institute of Queensland has just completed a fairly comprehensive study of consumer behaviour in our industry and our team has spent long hours digesting it to ensure we’re marketing our clients’ properties to the best of our ability!

So where do buyers come from and what attracts them to an area?  Aside from investors, buyers are more influenced to an area these days because they are able to achieve the lifestyle they desire over the potential for future growth. Interestingly they also tend to purchase within their local area.   They’re inspecting a greater number of properties in their search for the property they finally purchase.

Not surprisingly today’s buyers are time poor and real estate websites are overwhelmingly the preferred method of searching for a property. We know buyers are more likely to contact your agent and view your property if your advertising campaign contains the information and detail they expect to see. We also now know that in 30% of cases buyers report having paid more than they had originally budgeted.

So a great agent can make a big difference to your sale’s bottom line!

It’s equally important for landlords to have some insight on the impact their property manager has on tenant experience. A little over half of tenants are satisfied with the real estate agent or property manager they are dealing with. The main reason is the level of communication. Those that aren’t satisfied give a lack of professionalism as the main reason. Interestingly landlords tell a very similar story.

So chances are if you, the landlord, are confident in the professionalism and level of communication of your property manager, then so is your tenant.

Posted by admin on 14 April 2010

The latest rental stats have been released and they help explain the large number of rentals currently available. Here’s our Research team’s media release:

Brisbane’s rental market has had a massive boost, with over 1100 homes added to the rental pool in the first quarter of 2010. According to new Residential Tenancies Authority stats the past year’s decline in the number of rented homes has finally stopped.

Bees Nees Research Managing Director, Rob Honeycombe says investors have replaced first home buyers and are offering Brisbane’s tenants more choice.

“Investors have been sitting on the sidelines and during 2009 the rental pool just continued to shrink.  There’s now a lot more confidence in bricks and mortar and the RTA stats show property investors have started to dive in,” Mr Honeycombe said.

The RTA track all rental bonds and across Brisbane the total leapt by 1145 in the March quarter. Mr Honeycombe said this data followed this week’s ABS finance stats which showed investors’ share of lending is growing strongly.

“The inner city has been the standout, with 693 extra rental homes added since the start of 2010. That’s more growth in a quarter than we’ve seen since 2006.”

Mr Honeycombe said rents had mostly showed small gains, with Brisbane’s median 2 bedroom apartment rent now at $365 per week.

To get the latest median rent for your suburb visit www.WhatRentMyHome.com.au

Posted by Rob Honeycombe on 23 March 2010

Brisbane homeThe kitchen benchtop was red, the window frames were a metallic red, the tap handles were red, the curtains red and yes, even the toilet seat was red. This lady had a definite favourite colour!

Unfortunately we were trying to sell the house and despite a fair price and vigorous ad campaign no-one could see past the red. It was pretty much impossible to. And that’s why your selling agent or property manager will recommend “real estate beige” for your wall colours pre sale or leasing. It’s safe, it can be dressed up with darker and striking furnishings, it offends no-one and of course you can “move straight in” as the ads say.

But here’s the new twist.

White. The ceilings usually are, but now it’s the benches, the wall tiles, the vanities, the appliances, the curtains, the coffee table. Even the fluffy little almost-dog that’s lying in a corner (on a white rug). The white floor tiles are massive (who will win the ‘biggest tiles’ title and be done with it?) and have that impossible sheen to them.

Agents love these properties because they can use words like “crisp, canvas and clean-lined” in the same sentence. Their photos look like the pages of a designer magazine. And they don’t have to apologise for red toilet seats.

But is it just us or do you have trouble imagining yourself living in a home like that?

Of course plenty of good property advertising is about aspirational marketing, showing what life  can be like if you just buy this home. Couples start holding hands again, the man wears a tux and his wife looks longingly at him over the flute of impossibly expensive champagne. But we digress!

Home buyers do have a desire to live in a magically clean, clinical and ordered world. But what about some personality too? To me a favourite chair, even a slightly worn and out of fashion one, says “I like sitting here”. A rubble of toys (tidy!) says “This is a family home” and a sauce-spotted recipe book says “this is a kitchen where you’ll love cooking”.

One agent we know tells sellers to put away personal photos, trophies and similar so buyers can more easily picture themselves in the home. What rubbish.

Clean and tidy, yes. Uncluttered and with a sense of space, definitely. But for our money we say a home is a home. When you go to sell or rent your property don’t be afraid to show some of your personality.

Unless of course you love red…

Posted by admin on 22 February 2010

Professional internal imageAs an agent we’re given the property you own, that you spend your hard earned dollars keeping, and you trust us to do our very best to manage it.

Our “very best” can be a range of things, so make sure you choose an agent for both their key skill sets: Letting & Management.

Bees Nees gives every new landlord a big gift for coming on board:  innovative and eye-catching promotion. Our promotion of rental properties is absolutely outstanding compared to most of our competitors (to be honest I have to laugh at many rental advertisements I see, they are a joke!).

Firstly, we organise a professional photography shoot. They look fantastic, even I can’t make a penthouse look good on a $99 Canon.

Secondly, we organise a drawn floor plan. So the tenants can imagine life in the home before they call us.

Thirdly, we write an ad that leaves nothing to guesswork. The facts in full so we’re making your home the easy choice on a long list of competitors! (don’t leave something out that you know tenants will ask about, or they may just call about another property!)

This is not rocket science. This is simple, informative and time saving for your tenants.

So if we create a cool ad, more people will click on it.  If we give them the information they need your home will be first choice. Then if we show them and make the process easy (24 hour turnaround), they think “Geez I’d love to rent from Bees Nees” and hey presto you have yourself a tenant.

We also know that once have a tenant, there is no way you can trust that the tenant will have  gorgeous furniture. Come time to find the next tenant, we have the lovely photos from the start!

Posted by admin on 12 February 2010

Throwing around cashYou should all be fully aware of the new Act we are now following since July 2009, but have you as a landlord or tenant noticed any of the changes?

One of the first things we must do, when appraising a property for rent and providing landlords with information about property management, is set a listing price and marketing campaign. Since the introduction of the new Act an agent is unable to push for rent bidding. So, if we have 5 applications that are all excellent, we cannot start asking them all for their highest offer and high-five the landlord when we get more than we really budgeted for (and more than it was really worth!).

If a tenant offers a higher figure, for example they might be in a huge rush to move or they have a pet, then we”ll take it to the landlord for their consideration, but we can’t tell the other applicants so they can erupt into a money throwing fight.

So if you want to get a tenant, quickly, with good references, and have a choice of tenants to pick from… price it right! We’ll work hard to get you the best rent possible but don’t set it too high and wait for the tenants to negotiate because they’ll just choose something else.

Posted by admin on 18 November 2009

An RP Data report this week gained a lot of media attention, advising of a rent jump in West End of 39% during the September quarter.

This is sensationalist and not correct.

Many inner-south landlords have felt first hand the truth of a market that is flat, and in some cases, slightly down.

Rents on established homes and apartments are, for the most part, not increasing. What is increasing is the number of brand new and near new property on the market for rent. Therefore, higher advertised prices than what we have seen in the past. Not higher prices on the same property. The fine detail of RP Data’s report confirms this – but was not given the emphasis it needed in the reporting!

These brand new property owners have paid a high price for these stunning apartments with city or river views. They’ve budgeted the amount of rental income they need to support the mortgage and they may not be achieving it.

In some cases this influx of brand new apartments, and not enough demand from tenants requiring luxury property, have created some vacant property on the market.

The investor with a 5 or 10 year old property around the corner cannot expect their rent to increase in these circumstances, especially if the new stock is not flying out the door.

The best  measure of rents is the RTA’s report on what new bonds are lodged each quarter. And for the record in West End’s postcode in the September quarter 2 bed apartments dropped 2.2%. Read our Market in a Nutshell report for West End.

Tenants want new, modern, spacious apartments with air conditioning and off street parking but if there are loads of apartments to choose from they’ll quite frequently attempt to knock down the price and try new negotiation techniques on the property manager!

Posted by admin on 17 September 2009

So your neighbour is pulling in $500 per week in rent and you’re only getting $480 for a comparable property. What’s better for you financially? To get the best possible rental price, or reduce the vacancy of the property?

Let’s compare:

  • $500 per week for 6 months is $13,000
  • $500 per week for 6 months but with a vacancy of 3 weeks is $11,500

versus:

  • $480 per week for 6 months is $12,480
  • $480 per week for 6 months but with a vacancy of only 1 week is $12,000

Of course, your agent wants to get you the maximum price for your property because they receive a percentage – the more you earn, the more they earn!

But, leaving your property sit vacant for more than a week or two can be more detrimental to your bottom line than you think.

People also talk about the benefits of keeping your tenants happy by only charging them a sensible rent and not pushing their limitations too much. This can be true, but this is really about you. You own investments for your own benefit, not your tenants.

So do your calculations and have a game plan in mind for when your properties become vacant. And most importantly of all, use a property manager you trust and who knows the market.

vacancy and rent

Posted by admin on 10 September 2009
This is a "corporate-looking" apartment!

A "corporate" apartment.

There are a thousand too many 2 bedroom, 2 bathroom, fully furnished apartments on the rental market right now. There are many factors that lead to supply exceeding demand, but I’ve seen a major drop in the enquiry from ‘corporate tenants’ – which is when the tenant has their boss, or their company, paying their rent. The company provides an accommodation allowance for the staff member, often as an incentive to take the new position within the company.

With the job market softening a bit, the company HR team find they have enough applicants for the jobs they’re offering and they don’t need to offer these incentives right now to get the right staff.

These fantastic ‘corporate’ tenants are disappearing and enquiry is not coming in from this normally active source. And for some landlords the hopes of this seemingly perfect scenario are unrealistic. The thing is a company can go into administration at any time, or cut short a job contract or a project. A company can walk away, call it liquidation and you can’t stop them. A company won’t pay any more in rent to you, and their staff member won’t take better care of your property and their expectations of the premises are similar to that of a hotel – consumable.

I get enquiry from professional couples and wealthy families moving interstate, changing jobs, selling and buying, waiting for their dream home to be built and I get sisters who’ve lived in their apartment for years and the owners selling and they need a new place, and I get single men who need a special kind of garage for their Porsche! This is what I want in a tenant, not a company lease with a chief technical officer with no name!

These are all excellent tenants who care for their home and treat it as their own. They know you are a person and they respect your property. They often have their own investments and they know what the expectations are.

Tenants in the inner-city want a nice lifestyle and they’re not afraid to pay for it. Corporate’s want a bed, and a fridge, and a cheaper-than-$195-a-night hotel room.

Don’t worry about tenant selection, we’ll get it right. The market is still okay and rent will come in either way!