When it comes to choosing an agent to manage your property, are you better off with a local or metropolitan agent?
On the one hand, a local agent may have neighbourhood knowledge about your suburb and a concentrated network to draw upon. On the other, a metropolitan agent is tapped into broader market trends, which they can leverage to help you strategically grow your property portfolio.
In this blog, we explore the pros and cons of working with a local agent, so you can make an informed decision.
Benefits of local agents
Local knowledge
An agent who works exclusively in a particular suburb will have local knowledge. From sales history to market trends, they’re well-placed to develop an informed assessment of your property’s value and rental potential. A local agent can also provide recommendations on the kinds of features you may consider adding to your property to make it more attractive in your suburb.
Familiarity
Knowing the suburb and being known within the suburb often translates to community trust. It also means that when your agent is making their sales or rental pitch, they sound confident and informed. By conveying their own appreciation for the area, a local agent can get interested parties on side and put them at ease.
Local network
A local agent will likely have a database of potential tenants or buyers. They can tap into this as soon as your property hits the market, creating a sense of buzz around it. If your property’s a rental, a local agent can also make an informed recommendation on local tradespeople for any routine maintenance or repairs you need to undertake.
Thinking about hiring a property manager to look after your rental? Read our essential checklist before choosing one.
Limitations of local agents
Potential bias
The flip side of extensive local knowledge is the potential for bias to creep in. A local agent may be inclined to overestimate the value of properties in their suburb because it’s in their interest for values to be higher. They may also counsel you to invest further in the same suburb, even if a more diversified property portfolio would better suit your financial goals.
Limited perspective
A local agent may also suffer from tunnel vision. By being super clued in on the trends and history of a particular suburb, they can miss broader developments that are changing the wider property landscape. Ultimately, this myopia can make it hard for a local agent to provide you with informed advice on other suburbs worth considering for investment.
Unable to consolidate portfolio
Imagine you have a portfolio of several rental properties across multiple suburbs. A local agent can’t manage all of them, so you’ll need to liaise with different agents to manage your various properties. The whole point of a property manager is to make managing a property portfolio easier – having different agents for different properties in different suburbs soon becomes complex and ultimately defeats the purpose of outsourcing your property management.
How to choose the right property management company for your needs
Deciding whether to work with a local or metropolitan agent ultimately comes down to scope.
If your property investment goal is to generate a solid ROI on one or two rentals in the same suburb, a good local agent is well-equipped to help you achieve this.
However, if you want to develop a broader, more diversified portfolio that’s informed by wider market trends, a metropolitan agent is the best choice for you.
At Access Property Management, we’ve worked across the Perth Metro area for over 29 years. We have the knowledge and expertise to help you build and grow your property portfolio and pursue your financial goals.
Our team is always here to help. Get in contact today and we’ll get back to you shortly to discuss your investment strategy.