Image
May 26, 2020

Creating a Reference Point

How do you know when to compromise?

When it comes to making a deal, many things are negotiable. You make certain accommodations to ensure both sides benefit from the deal.

But there are some things you should never be willing to sacrifice. These are the reference points you’ll use to negotiate the deal.

This was one of our main discussion points with our Sydney based real estate agency we told you about in the last post. We discussed what it would take to create these reference points and use them as evaluation criteria when making deals with property managers.

Think of reference points as precedents you’ll use when negotiating any deal.

The following are a must for a property manager:

- Accurate reporting

-Timely rent payments

-Well-maintained property

-Communication

The other side will often have a lot of bargaining power. They might try to make you compromise on some things that you can’t do without.

Setting precedents can prevent this. You’ll have clear criteria that aren’t negotiable. What’s more, you’ll get to know the behind-the-scenes people who work to satisfy those criteria. In many cases, you might not know who’s managing your property, which is a big mistake.

As an investor, I believe that this is beyond important. I got to know the guy who manages all my properties. Furthermore, I also know his front-line people. 

The manager has 20 years of experience overseeing 200 properties. That’s all he does and he does it well.

To benefit from a deal, you’ll have to make sure that the person who’s doing the job knows what they’re doing. It’s the surest way to save yourself from headaches.

I can help you with setting precedents and more. Click here to get in touch.