Having a franchise agency look after your investment might seem like a surefire way to secure a good property management experience. Their website will tell you, they will find a 5 star tenant, and provide stress free property management. The allure of a recognisable brand, and corporate support can make the franchise agency appear to be a golden ticket to your investment being managed effectively. 

However, the reality can be quite different.

One of the biggest misconceptions about having a franchise manage your property is the belief that it guarantees success. While established franchises do offer a structured internal system, it doesn’t eliminate the risks inherent in property investment.

A Case Study in Property Management

Consider the experience of one of our clients who was with a franchise property agency for seven years. We took over his portfolio last year and discovered that he had not invested a single dollar in property improvements during that time.

 Although he was diligent about repairs and maintenance, the properties had not evolved or been upgraded in over a decade since he originally bought them.

This lack of investment had a direct impact on his rental income. He was growing increasingly frustrated with stagnant rental prices. You would too, right?

When one of his tenants broke their lease, Exclusively Managed recommended agreeing to an early termination with the tenant paying two weeks’ rent as compensation. The tenant agreed, and we immediately started on the necessary repairs and upgrades. We upgraded the electrical, installed new carpets, and did some touch-up painting. As a result, the client achieved an increase of $160 more per week in rent. That works out to be an additional income of $5,500 per year.

What is worse? His previous agency never recommended these improvements.

During our inspection of the property, we discovered that previous repairs hadn’t been completed correctly, a previous tenant had installed an unsafe (and illegal) pergola, as well as doing unauthorised electrical work. We of course, removed these hazards from the property.

We are now applying this proactive approach to each of his properties. By identifying necessary upgrades and improvements, we are not only ensuring the safety and compliance of the properties but also significantly boosting their investment and rental value.

This situation highlights the pitfalls of relying solely on a franchise for your investment’s growth. The structured system and corporate support can sometimes lead to a lack of personalised attention and proactive management. We have seen in one too many times.

Investing in property improvements and staying vigilant about property conditions are crucial for maximising rental income and long-term investment growth. 

Franchises might provide a solid foundation, but true success within your investment often requires a more hands-on and customised approach.


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