Selling landlords on improvement

Poorly presented and maintained properties are harder to lease and create ongoing headaches when equipment fails.
But few property agency principals will turn down management of a poor quality property.

By actively “selling” the landlord on improvements, property managers can achieve higher rent, shorter vacancies and potential capital gains for the owner.

There are a number of techniques which can help:

  • When you do inspections, ask the tenants what they would change about the home if they could – and how much extra rent they would be prepared to pay if the work was done. Popular changes include air conditioners and dishwashers.
  • Have a good look around and list the changes you think could make the property more attractive if it becomes vacant – and advise the landlord of your recommendations and how much more rent you think they could charge.
  • Break the numbers down by week on any proposed change – and don’t forget depreciation, i.e. do the maths so you can tell your landlord that, after depreciation, a new dishwasher would only cost $X per week but could raise rent by $Y.
  • Compare the cost of any change you propose to the weekly cost of a vacancy.
  • Make it easy for landlords to agree to changes by offering to organise the work on their behalf.
Property commentator Michael Matusik has written a list of 10 simple things investors can do to maximise rent.