Rising rents fuelled by REA’s
I’m not sure how much of this is common knowledge.
RE Agencies build their rental stock and influence prices for their own gain, but not in the short term % or fees. Sure that helps that arm of the business pay for Property managers etc. But the ultimate goal of rental stock held by agencies is to one day sell the rent roll to other agencies.. before COVID and the craziness, it was a slow game, but since COVID, since our govts desire to replace us with immigration, rents have been soaring.
Agency directors and franchise owners have been rubbing their grubbing little hands together since, they build their rental rolls to basically be free money down the line, retirement funds even. I’ve heard them speak of it like this. Every rental increase, also increases the valuation of the rent roll.
Surely, owners don’t know their properties are being used like this, they took the risk and some slick suit uses their property as a retirement plan.. owners pay the fees, pay to fix it, yet old mate will literally retire off your work and money. Something just doesn’t sit right about this with me. It explains alot about why they don’t care about upping the rent on struggling and vulnerable people, because they know someone will pay what they’re asking.. and it’s growing their wealth. It’s just gross.