Current tenants are moving out of a property I own, so will need to re advertise in the next two weeks.
The property manager indicated a colleague (also a property manager) is interested in renting it and has sent through their application for review.
I’m worried about a potential conflict of interest, however taking them as a tenant would save money on advertising costs.
Interested to hear your thoughts.
Sounds potentially messy
Maybe check rental references (those who aren't part of the current team she works for)? Past property managers etc
I think you already have a conflict of interest problem, because the current property manager shouldn't have moved his friend to the front of his tenant queue. Which other friends is he prioritising?
Increase Rent
hahaha
that'll show 'em!
Tbh, if a property manager thinks its worth renting, you are probably undercharging….they see the whole market so will know whether its a good deal
this is good reading between the lines..
Run.
Don't rent to anyone who has an association with either your property manager or yourself.
My mother-in-law has made this mistake twice as she was recently dumb enough to rent out an apartment to a colleague who immediately confronted my mother-in-law when they had their rent increased.
Your manager just sees their own colleague applying as a matter of convenience. Just let her keep advertising and gettting other applications.
I also just rejected two groups of applicants myself today for my own IP.
what rental crisis…
Sell your place
I wouldn't if it's the same company you are using as your agent. Surprised there aren't rules around it actually. If it's not someone from that company, why not, PMs need places to live too.
This is indeed COI and I'd advise to stay away. I am surprised he even told you - he did the right thing there.
What could go wrong?
Maybe you’ll get less rent than possible.
Maybe the tenant will use ‘loopholes’ to screw you.
Maybe inspections won’t happen.
What do you think the conflict of interest could likely be
What is more likely?
You’ll get a tenant that pays rent on time and knows they need to be a good tenant or they are out of a job. And they will want to keep you happy as a customer.
Would be fine if only there was a way to independently determine what the rent should be and independently inspect the property. Which, hey, that's what you pay them for in the first place. So it's a bad idea. Could only work if you gave the property to a different REA but then what's the point, why would you.
Let them do it. Now is your chance to stick it to property managers on behalf on tenants everywhere. Raise the rent, be slow to fix things, ask for lots of inspections, claim they caused damage, & then evict them with minimum notice.
No, if you look through my forum posts https://www.ozbargain.com.au/node/646950 I had MASSIVE issues with my PM recommending me a real estate business owner (operating in the same suburb) for my property. They wrecked my place and knew exactly what to say to get out of paying for it. Made bogus claims for repairs to try to get 'their people' in. Turned off the retic because one sprinkler head was blocked and didn't tell us. We lived across the road and it would have been a 5 Min fix, instead the whole garden died and we spent months and so much water to revive it. House was left dirty with thick brown dust/webs hanging from every ceiling and PM said 'oh that's acceptable'. Then threatened to take us to court because we didn't want to release the bond. I didn't want to release too much details at that point as they were still tenants but since sold the house so IDGAF anymore. We also had to repaint the whole house as it seems their kid enjoys rubbing dirt all over the wall
Nightmare experience -50/100
he investigated himself and found no wrong doing
I wouldn't take anybody who doesn't pay a year's rent in advance.
And yes it's easy to find in the current market.
Agree there is a potential conflict of interest. Safer to pick someone else.
If you were to take this tenant, he might raise BS issues to your property manager, rorting fixes.