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In This Video:

00:14 No one ever pays full price
01:33 How you treat your rental manager?

Good day everyone! It’s Damien here. And my next series in my video: “What you were taught wrong about money”. And this one is a pearly. No one ever pays full price.

No one every pays full price

If you were brought up in a poor environment, you’re probably taught to never pay a full price. Always get a discount. And you know what, that’s fine in some cases. But you’re not going to get wealthy that way. In fact, all you going to do is piss off those people who are providing services to you.

I’ll give you a classic example. I had a client, who wanted to rent his property out with the rental manager that we recommended. The rental manager wanted seven and a half percent of the rent as the management fee, which is actually very reasonable. So, this client contacted me and says “listen Damien, just so you know, I’m going to screw it down to six and a half percent.” And I said to him “why would you wanted to do that?” And he said “well no one ever pay full price Damien”. So I said “great, okay, let’s talk about that then”.

So we talked about, we worked out that the annual saving by negotiating the price, from seven and a half percent to six and a half percent management fee, was going to be $220 per annum. But there were broader consequences that he had not thought about. And that’s what I didn’t spoke to him about. I said this, “by negotiating the price down, he’s now made himself that least most popular landlord in that rental management agency”. They’re working and they’ve got a job to do.

How you treat your rental manager?

What a lot of people don’t realize is that a rental management agency, they’re charging seven and a half percent. But they’re probably spending five and half to six and a half percent of that is going out on their expenses. And their profit is only one or two percent of the rents that they actually get to keep and to pay for themselves. Now you go in there and take one percent off. You’re slashing half their profit. You’re slashing half their pay. Now you rather think that’s a little increment. But to them, it’s a big increment. And they are not very pleased about it.

Here is your problem. You’re a landlord. And your property is vacant. And on one hand, you’ve got the penny pitcher landlord. And on the other hand, you’ve got me. Both our properties are vacant. The rental manager is looking for tenants to put in there. And into the rental agency, walks the perfect tenants. And there hasn’t been anyone all week, just one tenant who is ready to go. And who’s going to get that tenant? The penny pitcher or me who pays full price and sends my manager flowers every year, and to say “Thank you for being such a wonderful rental manager.”? You see, the wealthy know that if you wanted to be successful, you have to look after the people who are looking after you. Who is going to get the best tenant? It’s the people who look after their rental manager. Though you’re paying them, doesn’t mean you don’t still have to look after them great. Think about this, if you were the rental manager, who would you be responsive to?

Now, for one week’s vacancy, $450 is gone. So by being the jerk, who is trying to save two hundred and twenty, would have make yourself unpopular and then have weeks and weeks and weeks of vacancy while you were the lowest priority to get a tenant. Now that money very quickly wrecks out. And that $220 doesn’t sound that good anymore, does it?

So remember, “no one ever pays full price”, get rid of that. When you are creating wealth, when you are building your little empire or real assets, you need a team that loves you. Not a team that resents you. And if you want those people look after you, you have to look after them. You need to pay them what they deserve. And you need to treat them nicely. If you do that, they’re going to bend down the backwards for you.

If they are your the rental manager, they’re going to find you the best tenants. If they are your property guy, they are going to get you the best property. They are going to go all those things. They’re going to go the extra mile. And that extra mile is going to save you a lot of money. And make you a lot of money. Remember that wisdom.

Okay that’s if for me today. If you learn something from this, please comment below, like it and share with your friends. Let’s get this knowledge out there. If you don’t want your friends to struggle financially for the rest of their lives, you’re going to give education they didn’t get in school. And that’s what this video is all about. Please share them. Please get them out there. That’s it for me. I’ll see you on the next video.

Cheers!

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