In this video Jason Dwyer explains the Dwyer Property Investments unique 3-year rental guarantee:
Hi, my name is Jason Dwyer from Dwyer Property Investments. And I want to tell you about our three-year rental guarantee for a couple of reasons. One, it’s the most commonly asked question by everybody. They want to know how that works. And secondly, it is fairly unique in the marketplace. So requires a little bit of explanation and I think it is really good.
So, firstly to tell you it is totally optional. It is a contract that is signed at the beginning of the process and you decide whether you want to take it or not. How do I fix the rate? I fix the rate by doing market research on realestate.com, I do a rental appraisal myself as a licensed real estate agent then decide what that property is going to get on the open market, deduct about thirty or forty dollars a week which covers our internal administration cost. And I fix that price and that is what the investor gets every week for three years.
The biggest benefit to the investor is that it is fixed and there are no gaps and no vacancies or no letting fees. So, you know exactly what you are going to get every week for that three-year period. You can base your financial projections on a fixed amount not a fictitious allowance.
So who looks after the property? We have an in-house licensed property manager who deals with all aspects of property management. They do exactly what any property manager does. They do the interviews. They do their checks. They take the bond. They lodge that with the bond board. They do regular inspections and appraisals and collect them in advance. So that is all exactly as any property manager does and that is all done in-house by a licensed property manager.
Can the clients opt-out? Yes, as an investor, it is entirely your option whether you want to stay with the rental guarantee or not. We cannot opt out, we are locked in to pay you that for amount for the three-year period, but if your circumstances change and you want to sell the property or you want to move into the property yourself some reason, then you can set the opt out of that agreement. You just have to give us notice of intention to do so.
After the three-year period, what happens after that? After three-year period you have the option that we can just assign the management rights to any other company you choose or you can carry on with us under our property management scheme, which is standard for any property management, whereby the amount that the tenant is paying week goes into our trust account. We take a management fee and the rest gets passed on through to you direct from our trust account as per any other property management company in Queensland.
So people ask why do we actually do it? The main reason we do it is gives us the point of difference in the market. So, if someone was choosing to invest with us or someone else and our property has a rental guarantee at a fixed rate, then they might choose us. So there is no risk to that client, that investor of any vacancy, they generally choose us because of that point of difference, which is the main reason. The second reason is that it keeps us in contact with tenants who are often going to be homeowners themselves, and as builders, that is a good thing. It also keeps us top of mind for the actual investor who is, every month, getting their rental income from us. So, it gives us our first port of call when they are looking at their second or third or fourth investment. They would generally come to us for that. So, in summary, it is totally optional, gives you total peace of mind, hassle and risk-free property management.
Thank you very much. If you have some more questions, so feel free to call me or go to the website for more explanation.