There has been some comments in previous threads regarding PM charges in various states.
CAn we get some feedback from members from all states so a comparison can be made ??
I will start with WA:
Management Fee 8 to 8.5% + GST
Poperty Condition Report 130 + GST
Quarterly Inspection 50 + GST
Bond Inspection 60 + GST
Letting Fee 1 wks rent + GST
Postage & Petties 5 = GST
Annual Rental Statement 30 + GSTKP
I will start with Vic: Surburbs of Melb. Well for me anyway.
Management Fee 5 to 7% + GST. In my case its 5% as I have multiple properties.
Poperty Condition Report – Included
Quarterly Inspection – Included
Bond Inspection – Included
Letting Fee 1 wks rent + GST
Postage & Petties – $3 Statement Fee
Annual Rental Statement – IncludedI am from moody (the weather) Melb.
I noticed that PM charges for Melb sururbs (5-7%)are a lot cheaper than VIC regional areas (7-9%).
Anybody from VIC care to comment ?I’m from Western Sydney and me fee’s are as follows ;
Property management 5% (multiple properties)
Usually 5% – 7%
Property report – free
Quarterly inspection – free
Letting fee – 1 weeks rent
Postage – $3.30
Lease Prep fee – $15.00
Annaul statement – $30.00Ticky
New IP country QLD
Rent fee = 5% + GST
Management = 2.5% + GST
Let fee = 1 week + GST
Postage = $4.68
Refurbishment organisation = 5% + GST
Tribunal Hearing = $55 + agent feeThanks Yack and other for the response.
Its as I suspected…we seem to be behind the 8 ball in WA (and I suspect NT as well) with regard to fees and charges being at the top end of the scale.
I have to wonder why this is so ?
It can/t be due to a lack of competition.
Maybe the rents a much higher in Vic and NSW so that a PM gets a decent dollar return as a fee at 5 to 7% ?
But to include all the other service items in the cost has got me curious.
Why is it so different in WA ???KP
KP
Must be deregulation and they’re all blood sucking vampires.[evil4]
Is there a market then for a better PM service in WA ?
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorMy qld prop is 7.5% mgmt fee
My sydney prop is 6.6%Folks, seems like if you buy rural, you pay through the nose for everything. In places where there’s nt much competition for service provision, they can charge whatever the market will pay.
kay henry
I think I’m the winner!
My Tasmanian PM charges 9.5%. (No charges for inspection reports, though).
And I would gladly pay her more than 9.5%.
I had another PM previously who charged 7%. And after 3 months they managed to get one tenant in my block of 6 flats.
I swicthed PMs. My current PM had the other 5 flats leased within a month. And they’re pretty ordinary flats.
She manages the property incredibly well and is worth the premium. And she knows it.
Scott
Originally posted by yack:I will start with Vic: Surburbs of Melb. Well for me anyway. (Me too Yack)
Management Fee 5 to 7% + GST. In my case its 5% as I have multiple properties.
Poperty Condition Report – Included
Quarterly Inspection – Included
Bond Inspection – Included
Letting Fee 1 wks rent + GST
Postage & Petties – $3 Statement Fee
Annual Rental Statement – IncludedFor me, same as Yack above, except for the statement fee which in my case is $2.
IMHO PM costs like anything else, are open to negotiation. If you don’t like the charges but you also don’t want to shop around for a new PM, then stop whining and talk it over; you might be pleasantly surprised!!!Hi,
We have always paid between 5.5% to 7% + GST in regional areas of Vic. No qtrly insp fees or anything added. $2.50 per mth postage fees. the normal 1 week letting fee.
We are in the process of negotiating PM fee at the moment for Hervey Bay QLD, and they are trying not to budge under 8.5% + GST, $5.00 postage per mth. We shall see!
As for what Kay said..
Folks, seems like if you buy rural, you pay through the nose for everything. In places where there’s nt much competition for service provision, they can charge whatever the market will pay.
Kay, it’s not always wise to generalize about regional/rural properties.
I think that property managers do seem to be trying to increase more everywhere now, (if they can get away with it).
regards,
Del
Hey Monopoly,
Have you quietly snuck back into the forum ?
Couldnt stay away hey ?
Welcome back.[biggrin]
Benson.
Shhhh Benson…(it’ll be our little secret okay???) [winking][winking] Maybe if I’m lucky, no one will notice!!! [whistle] [lmao]
I pay 8% plus GST, (Dubbo NSW) and it includes:
2-3 condition reports p/a (2 is standard, but you can ask for one more if necessary),
monthly drive-bys,
an annual (value)appraisal,
monthly rental statements and
a year-to-date statement.
Re-letting fee is one weeks rent.
Not included is postage.So far, I’m happy with their service. They do expect landlords to keep their properties in a good state of repair, and they do not take on properties below their standards.
Celivia
Thanks to all of you guys for the replies,
It still seems that there are a lot of “add on” costs in WA irrespective of the management fee % rate.
It seems that the inspections and ongoing services are included in the fee in Vic and NSW and elsewhere, and this fee also happens to be lower !!(excepting Tas of course)
I will be providing this info to my PM and asking “why is it so ?”Redwing, I agree with your comment, running a rentroll is a lucrative business for an agency, but have yet to find one that that wants to be ultra competitive and offer an all inclusive service for a fixed fee (without all the add ons)
Monopoly, I also agree that fees are negotiable but the problem is that all you can do is ask the question and if teh PM is not negotiable your only other option is to manage on your own, or accept their fee….and they’re not negotiable here.
The best I have managed is 7% plus all the add ons as detailed, apart from that, I manage my own rentals.
KPHi kp,
Yes you’re right as far as negotiations are concerned, one can only but ask. And at the end of the day, after exhausting all avenues, and talking till your blue in the face, if the PM refuses to budge, then yes, you only have two options, accept the rates specified or find another PM. Oops sorry, option three (as you are already doing) manage the IP yourself!!
From the posts here, I’d say that for WA 7% is not a huge ask, and as long as you’re happy with the service, you’re doing fine!! [medieval]
Cheers,
Jo
Yep Monopoly,
I agree the 7% is a good rate but it is an exception and not the rule.
Standard seems to be 8 to 8.5%
And you still cop all the extra costs which seem to be included in the management fee in Vic, etc.
Thats the annoying bit as far as I am concerned…Tassie too is an anomaly where fees are concerned. Unlike most other states they charge 2 weeks plus GST for letting which is legal theft.
The charge 2.5% for arranging maintainance work, and the total management fee is 8.5% for one and 8.35% for 2 or more. Big deal!!!
Well I recently nailed a 7.7% inclusive management for the first time ever in Launceston for my clients so Im a very happy man. Postage and petties $3.30 per statement.
WA for me died as an investment location when I first discovered all the rediculous and unnecessary costs of managing property there. The world isnt that big that a state can think its Gods gift and still atract investors reguarly.
For me that buying trip was 3 days and about 8 fees too long. So we had 2 of which we have just sold one there. Not intending to buy more until the agents wake up they are part of a great country and not an island state with noone to compare against.
My focus is still Qld and Tassie and if people want to buy in WA good luck to them……for now.
DD
PS146 Certified Financial Planner
Don’t sweat the small stuff,and it’s all small stuff!!I’ve found in the past the members of REIWA are a very tight knit bunch…in fact they have a very tidy little monopoly going on over here in the West – as alluded to previously.
We decided we didn’t like playing their game, with the standard line trotted out of “I’m sorry, we don’t negotiate on fees. You’ll have to downgrade to a lesser manager if you want that”. Well having tried 4 or 5 different managers over the years, including the current REIWA Prez, we found them all to be incompetent.
There is only one person with your property interests close to their heart – you.
Our group also does not subscribe to this theory of – “Oh I’m too busy finding deals to manage my properties.” Our opinion is if your too busy to look after the deals that are in the bag already, you’re in the wrong game. We found chopping out TV frees up more than enough time to do just about everything one could possibly list down.
We also discovered that with one house, the high fees still didn’t encourage the managers to look after your investment, there simply isn’t enough money to make it worth their while. (8% of $200 p.w. – how much time per week do you really think that will buy you ??). Hence you receive little to no attention.
At the other end of the spectrum, with multiple props and rental income through the roof, the % charged is outrageously too high (8% of a 10 MM p.a. rent roll is way too much, especially if that 10 MM rent is generated from only 10 or 15 properties).
The only solution we found to work is to beat them at their own game. Works especially well with very large Comm and Ind props, as they literally manage themselves, and if they don’t they pay the Landlord to manage them. Rental houses on the other hand…hmmm…lotsa work and whinging tenants.
Cheers,
Dazzling
“Go hard or go home”
Hi KP
Greetings from Sunshine Coast, Qld! Rates on the coast here vary greatly. Most reputable and highly thought of PM’s charge 8.5% + GST, 1weeks re-let fee + GST, statement fee of between $5 & $6 +GST and maybe some advertising.
There are some other agencies that are trying to buy business with a fee of 5.5%. I know some investors that were swayed by this and have regretted the move. The agencies are trying to build up their rent roll so they can sell it on![dead2]
There are also some agencies which will provide different levels of service for different fees, ie., an all inclusive fee of say 9-10% with no other charges (gold service); or 7-8% with some extras (silver service); and, 5-6% with lots of add ons (bronze service). It may be worthwhile chatting to your PM and asking if they can offer something like this and YOU letting them know what level of service you require.
We need to remember that a 1% or 2% saving on PM fees are, in the end, not that great when you consider the implications of not have a great PM and that the various legislation changes quite regularly (usually in the tenant’s favour) and if your PM only charges a nominal fee and doesn’t keep up with all the changes, etc., the end result could be quite costly!!
Hope this helps and bye for now[juggle]
Yasna & Simon
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