Beachside Property Rentals Keeps Property Investors Ahead of the Game

Beachside Property Rentals founder, Liz Malthouse, talks about their dedicated property management wherein they work with Investors, to ensure that they receive accurate data on any property that they are looking to purchase, rather than a sales person inflating the rental return so it looks good for the sale.

Beachside Property Rentals is purely a property management service provider based on the Sunshine Coast, which is dedicated to providing flexible property management support and personalised services to clients, and investors. They give regular rent reviews and inspection results to property owners, keeping them updated on the current status of their property. If you are looking for someone to look after your investment, and cares about your property.

Transcript

Wayne Bucklar:  So my guest today is Liz Malthouse, Principal at Beachside Property Rentals and Liz joins us from the Sunshine Coast. Liz, welcome to the show.

Liz Malthouse:  Hi Wayne, thanks for having us today.

Wayne:  It’s always a pleasure to have you with us Liz. Now you work with investors to ensure that they are ahead of the game, how do you do that?

Liz:  Well, I’ve been working with a lot of investors lately. A lot of people who are wanting to buy any business property on the Sunshine Coast but they’re not quite sure where to buy and what rental property that they would actually be. So I’ve been working closely with a couple of clients over the last year and what they do is go on realestate.com and have a look at the homes that appeal to them. And then what they do is shoot me the link or email me the link through, I have a look at the property, see the area because of course in any suburb, there’s good areas and there’s bad areas. So what I do is have a look at the area, see if it’s an attraction to a tenant and then what I do is do a rental appraisal on that properties. So then they get the true indication of what sort of income that they will get off that property in order for them to maximize their return rather than going through a sales agent who of course they always inflate it for then they give sort of the real figures. Sometimes, that they can take time with one client I was working with recently, I probably did about 30 rental appraisals in various areas ranging from Noosa to Sunrise Beach. So it could be a radius of about 10-20 kilometers and we actually eventually secured a property for him, which was fabulous and then they just come over to me and then we just started renting it out straight away. The figures that we gave were accurate, the banks loved it and it was a really good working relationship and building that rapport with that client to give us the trust for Beachside so that was really powerful.

Wayne:  Liz, it’s never occurred to me before but it sounds like the relationship between what you pay for the property and the income you can get from rental is not fixed. There’s things that make that a variable figure. What are the features or what are the characteristics that you notice that make that a better proposition for an owner?

Liz:  We are very seasonal up here on the coast so it will depend on the type of year that you actually buy and invest in property and the amount of income you will get during that year. For instance at the moment typically in the winter months, our returns are a little lower because we don’t have the demand of properties. So generally in the sunny period, that’s when we can maximize and really get the strong income, a strong rental return for the owner. If you’ve got a pool, some owners don’t like them, tenants loves them. We usually get about 50 to $60 a week rent on an investment property if it has a pool. Obviously, people like properties that look good, they like seats or benches available or really nice kitchen like Noosa up on the Sunshine Coast, there’s a lot of the older areas so the properties are really of age. So the most that you could get out of the property, if you actually have a more modern look. People like to live in a property that it’s nice. They don’t want to live in a property where the kitchen is thirty years old and it’s falling apart. You’re just not going to get the return, you might get overall long-term income if you resell your property but as a tenancy your weekly rent that you’re attracting or the timing on your tenant is not as strong as what it would be better standard property if that makes sense.

Wayne:  Yes, it makes perfect sense. Liz, you say you use the tagline on your website, “Discover the Beachside Difference.” Now what do you mean by that?

Liz:  Well as you know I’m mobile so when Beachside Property Rentals was developed, I wanted to be different from the other agencies. I don’t want to be like everyone else and have a shopfront and be that traditional real estate agent, I want to be different. So the Beachside difference is I had someone called me last night about eight o’clock and I took the call, normal property managers would not. Working with clients who are trying to secure a property for them, seeing the area site so I actually go outside of my realm of a typical property manager, you then service and the feedback in order to give them a better outcome of their investment and that’s our difference. Now we will do what other agencies won’t to do of course, it has to be legal but the service we provide is outside the realm of what a typical standalone property manager or an agency will deliver.

Wayne:  Now, that has to make your owners stick to you like glue.

Liz:  They love it.

Wayne:  I’m sure they do.

Liz:  I’ve got a property at the moment that a tenant is actually breaking properties, so they’re moving one so they’re breaking the lease. I was doing negotiations last night up to about ten o’clock and texting the owner, keeping him abreasted and updated of what was happening and what he should be expecting to hear from me tomorrow and that we have to move quickly in order to get this deal signed. And another tenant moved in and then we can move forward from there. A lot of other agents, a tenant who’s breaking their lease, of course you have to try and mitigate their losses but you don’t have to go outside the realm of a typical 9 to 5 day. But more importantly, we know that’s why I did and that’s what I do. If the other tenant wants to move on and we want to find someone in the property that’s going to treat it like his own and love it to be there for a long time. So you just have to do things differently and go outside of your comfort zone and create that good experience because it’s all about that communication between myself, the owner and the tenant. It’s building that rapport between all of us and then we have a really good model and that’s the Beachside difference.

Wayne:  Now I know some property owners have done their research on property managers to try and manage an investment property on price and they make price the most important characteristic and some investors try to negotiate fees downwards. What’s your thought on trying to drive that sort of bargain with your property manager?

Revised Question: Some property owners try to negotiate fees with their property managers, what’s your thought on this?  

Liz:  Well I think if a property manager will automatically drop their fees when someone asks, well that’s not the company that I would actually want to deal with. I think it’s like anything Wayne, you get what you pay for. So if try to buy low or you get that product, you will get that product from David Jones. So these are difference between David Jones and Buy Low so the difference really in the percentage is generally a cup of coffee a week, it’s about four or five dollars. I don’t think a lot of owners understand the percentage, I think they’re just after a deal. However I find if people are quick to reduce their fees, they’re quick through when they’re negotiating with the tenant for renting properties or they’re negotiating with the tenant on the harder issues they will just crumble.

Wayne:  Yes, good point.

Liz:  And an owner does not want a property manager who will crumble. I think you need to be fair, you need to have integrity, you need to know the legislation and try and navigate yourself through the process to get the best outcome for everyone. And at the end of the day, we are going to work with the owner but when you have to be strong and get the owner what the market is reflecting to them and that’s why I think with Beachside, our fees are competitive. We’re not the lowest management fees but we’re definitely not the highest either. We’re in the middle and I think it’s fair and reasonable. You wouldn’t get another property manager contacting you outside of hours or working out, so that could mean a deal gone. Owners have really need to look forward to when they start negotiating percentages, they need to really get ready of what that property manager is going to do for you and how’s that going to affect your return. A wrong property manager will cost you thousands of thousands of dollars so just to squabble over a cup of coffee a week is really irrelevant in my eyes.

Wayne:  And Liz, I know you’re on the beautiful Sunshine Coast and many of the people listening will have had experience there. But what are some of the suburbs that Beachside Property Rentals manages properties in? So what are some of your favorite suburbs around you that you work in?

Liz:  Of course, Noosa is great. Peregian Springs is a really strong rental area and they’ve got lovely new homes. Peregian Springs is probably about 15 to 20 years and it’s just growing. So there’s a lot of new development, a lot of people like to live in a new property. Peregian Springs is really a couple of minutes to Noosa Shopping Centre about 14 minutes to the beach of Noosa and it’s about 5 minutes to the beach of Peregian Beach, that’s a really attraction down there.

Wayne:  Sounds terrible.

Liz:  I know. The sun is shining out there today but it’s still a little bit cool. We even manage properties from Yaroomba which is just past Mount Coolum. They have some beautiful properties down there on the beach front, quite high market properties. And then Mount Coolum, Peregian Beach, Noosaville and Sunshine Beach, all along the Coast up to Noosa and then we get out to Tewantin and we’ve got a couple out at Roy which is a lovely little winterland suburb and country area and it’s August. A lot of the old Queensland homes and winterland has got a beautiful shopping center there. So probably as far as I would probably drive would about 10 to 12 minutes, it’s not that far really.

Wayne:  It’s certainly not far if you’re living in one of the capital cities. Liz Malthouse of Beachside Property Rentals, it’s been lovely having a chat with you again, thank you for your time.

Liz:  Thanks Wayne, have a good day. Bye for now.

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