How Much should your managing agent charge for letting out the property and ongoing fees?
Don’t know if it has gone up in the last 12 months but our last 2 properties we used 2 different agents (standard real estates) and they both charged 7%. One here in Brisbane and the other in Caloundra. A quick call to any estate agent should sort it out.
We managed our own property last time and were much happier. We achieved a higher rental than advised by agents and established a good raport with the tennants.
We also found that niether of our paid for agents ever actually inspected the property like they are supposed too.
I am currently renting as I have sold all my properties to start +ve cash flow investing, and my current agent has never inspected my residence. Lucky for them I am a good tennant.
Sorry to ramble on…hope it helpsThere is no turning back.
http://www.foilbiz.comHi George
In WA, th REIWA recommended rate is 8.5%, altho you ncan negotiate of course. Just watch for the add ons though
George,I cant say for other states, but in Qld there are 2 commissions and 1 management fee.
The 2 commissions (which are negotiable) are Letting and Rent Collection, both are capped by the PAMD and depend upon length of tenancy and if the Letting commission has been charged or not. More than likely though the letting commission will be equal to 1 Weeks rent and is only payable once (on finding a tenant)
The Rent collection commission can only be 5% (Max) of the rent collected in the first year, if a Letting commission has been charged. It can go up to 7.5% in the following years only if the same tenant exists.
The Management Fee is not regulated by the PAMD(Property Agents and Motor Dealers Act) and therefore has no legal maximum. It is GST inclusive and an acceptable market rate for residential property is 5%.
In practise though all the fees and commissions are usually explained as 1 total percentage ie. 8%. If your unsure ask your agent to fax you a copy of your Management agreement.
Cheers
Ozpat
“Success comes from having the proper aim as well as the right ammunition”
Hi,
The range that we have seen is low of 5% (Vic) – to a high of 10% (Tas).
Add to this any fees such as letting, statement, inspection, tribunal appearance etc.
The wide range makes it critical that you complete a due diligence prior to buying so you can quantify the likely cost.
Of course, you can save this cost by self-managing… but what you save in $$$ you might pay in hours and worry.
Bye,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Is their a course or a kit so you can learn to self manage your own properties?[
]Hi,
Not that I know of… I pay my rental managers out of my cashflow profits.
Cheers,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
If you go to the Real Estate Institute in your state (eg. REIQ) they have course information on their websites and real estate management is contained in their Modules.
But I do agree with Steve, youd have to weigh up the Savings Bucket with the S&%t Bucket !
Also I would make sure your property manager or any agent is a member of the Institute in that state, as there is a code of ethics and rules which must be adhered to. If there was ever a dispute there are cost effective tribunals in place for Members of these Institutes. [
]Ozpat
“Success comes from having the proper aim as well as the right ammunition”
“Success comes from having the proper aim as well as the right ammunition”
I work part time in R/E, but we sleep comfortably by choosing to pay our agents to manage our properties. We receive four inspections per year as per the lease agreement and can arrange to be present at an inspection if we wish. We receive a copy of the inspection report and can check on anything we feel needs doing. The agent of course would attend to anything urgent as per the agreement during office hours. The tenant has a copy of the lease which has the name and phone number of tradesmen who can be contacted in an emergency out of hours. There are things I would prefer not to do or haven’t got the time, such as collect rents, increase rents, do inspections, contact tradesmen when needed, give notice, etc. Fees are negotiable sometimes, we pay about 7% overall but some in this area charge 10%.
You should be able to pick up a copy of the handy little book The Renting Guide – Your rights and responsibilities as a tenant or landlord – from any R/E agency in NSW as this booklet is given out with new leases. It is put our by The Office of Fair Trading and has good information.
Anna
In WA, th REIWA recommended rate is 8.5%, altho you ncan negotiate of course. Just watch for the add ons thoughWow that’s low. I’ve talked to 4 real estate agents about managing my rental property, and the rates I get are 10-11% (around $200pw), not including property inspections/condition reports. What am I doing wrong? Maybe I look like a sucker.
Cheers
MI think the standard in Brisbane is 8.5% plus between $3.50 and $5.50 for postage and petties. But as with anything, it is negotiatable. Other things to look out for include the period of notice to be given. My son is just renting out his first house and the PM wanted 90 days notice and 8.5% which we negotiated down.
bribie
I pay 6% in QLD and 5% in Melbourne. In both cases the agents are managing 2 IPs which helped me negotiate a lower rate.
Rod.
I found most agents in Brisbane charge 8.5%. My manager is Waterman’s Proprety Management, and they charge 8.0% for the first, which drops by 0.5% for each subsequent property, down to a minimum of 6.0%. Added to this is $5.50 per month for “Postage and Petties”
(Edited from initial post, as I’ve just checked them on my rental statements, plus their website)
They tend to quote a rate before GST is added; ie 8.0% is actually 8.8%. Their rates are shown on their website at:
http://www.watermansproperty.com.au/for-owners/index.html
There is no mention of GST on their pdf sheet of fees, except for the letting fee, which is really naughty. I’ll be sending them an email about that!
Jim.i started paying 7% initially then negotiated it down to 6% and now to 5%. my agent tells me they can lower it further, if i have more properties to rent out. and i’m talking about melbourne victoria.
Im in Sydney and I pay 5% at the moment, however, if the tenants leave, the R/E will charge me a letting fee of 1 weeks rent. Is that fair?
I also just purchased a property that is already tenanted and i’m keeping the tenants in the property. Does the r/e agent charge anything for an ongoing tenancy? [?]
We try to buy a few properties in the one town.
We have 5 in one town in Vic, and pay 5.5% instead of 8%. We get great service from them also. Their ppty mgmt skills are much better than most others we’ve dealt with.
We always politely try to negotiate, although they seem to be getting tougher to get down in price.
Del
So there are two fees in QLD. Interesting. I have a few properties in the same QLD area. One of the agents up there has quoted me a “discounted” rate of 7.5%, provided I let them manage all of my properties in the area. Judging by what others are paying for management in the sunshine state I’m now thinking that is not such a good rate after all. Any comments?
Hi
We have 1 IP on the Gold Coast and 1 in the Hinterland of the Gold Coast – both aer 7.5% – one charges 0 for advertising, postage petties etc – a flat 7.5%. The other charges 7.5% + advertising,postage, GST etc. We believe that it seems to depend on your negotiation skills and of course the # of IPs u have. Guess we better learn better skills eh []I’m paying 10 percent in two different towns. But that includes letting fees, and full service. No additional costs either except that they mark-up any tradesmen work they supervise on my behalf.
I am really happy with both agents. One has dealt with an insurance claim for me, too.
cheers-
MiniA little birie tild me that in some areas the tenant picks up the bill for the tenant finding commission(usually one weeks rent). Then you could say to the tenant “if you pay your rent on time for the duration of the lease I will give you a bonus of 1 weeks rent in cash”.
Ask your PM[
]Nu Gen
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