Forum Replies Created
When comparing PM fees, what do people look for?
Do they look at % of rent that the PM charges or the overal package of professional fees.
I have seen PMs offering a very low % to manage properties but they just charge a ridicoulous amount of money for everything they do. It seems like every time they pick up a pen or the phone relating to a landlord’s property, they get charged!!!!!
Do investors look at all costs when deciding on a PM?
Investment Property Management
http://www.adprop.com.auThis 888 thing has not really taken off in Adelaide yet and I’m told it is aimed at the more inexperienced investor market.
We have an establised investors network group meeting on a monthly basis in Adelaide. It is aimed at people who already are investors and want to network with other like minded people. Offcourse newbies are welcome too and they can benefit from networking with more establised investors.
Anyone interested in attending please email me. It’s free!!!
Investment Property Management
http://www.adprop.com.auManagement fee – 8.8% of annual gross collections/annum
Property condition report @ commencement of each tenancy – $99.00
Final Bond inspection @ termination of each tenancy – $88.00
Routine inspection reports – $49.50 (every 3 months)
Postage/petties etc – $9.90/month
Advertising up to $220.00
Fixed management fee – N/AThis is absolutely ridicoulous!!! What is the 8.8% fee for if they are charging extra for everything else?????
Investment Property Management
http://www.adprop.com.auSorry but I have to agree with Simon here! I would also question the motives behind excluding a group of people whether it is based on their gender or age or whatever.
Everyone has something to contribute, there are alot of switched on men out there as there are switched on women. You can learn something from everyone irrespective of secondary characteristics.
Why exclude a group of successful individuals just because of their gender????
Investment Property Management
http://www.adprop.com.auI would look at those suburbs that are priced below the median average for Adelaide and those that are poised for capital growth due to future development. Suburbs that come to mind are:
Hallet Cove and surrounds
Marino
Port AdelaideInvestment Property Management
http://www.adprop.com.auWOW!!! It certainly was worth asking this question, I thought we had it down packed but obviously continuously learning and improving is the best strategy to have [biggrin]
I have a serious question. how much would a property manager in a hypothetical franchise suburban re office get paid? and what size rental role would they be expected to handle for that .DLPP I would be cautious of PMs managing over 150 properties, they simply wont have enough time to do a good job. Salaries range from $30,000 to $70,000 in SA depending on how employment contracts are structured.
They simply do not understand the benefit to me to borrow the cost of expenses as apposed to having it deducted from the rent. Say my Management and other expenses that are deducted from rent is totals $5000 pa. , If I we to borrow this expense then there would be $5000 in my mortgage and as I could borrow the expense I’d have the interest on the $5000 as a deduction. at 7.5% that is a $375 decuction that I cannot claim. It may not sound like much but after say 5 years if this expense stayed the same, then the deductible debt would now be $25000 and the decuction would be $1875. pa.Great point Shwing and I honestly have never thought of it that way. How do you think a PM can take care of this. Have trades people bill the landlord directly?
Our last property manager caused us a lot of stress even though nothing ever went seriously wrong. She rarely contacted us and when we tried contacting her, she was always so busy and slow in replying to emails. Many of her emails were single sentences like “I’m on it”. That was so frustrating!alotti, I like this one, it makes us look good [biggrin], glad you found a great one this time!
Hi L&S
Can you handle properties outside Adelaide, about 230km away, at the momement?Maybe in a few years we’ll branch out to other areas, but at the moment we are just focusing on Adelaide and suburbs.
What area are you talking aboutMatthew, thanks for your comments. We’re on track with all those! [biggrin]
Investment Property Management
http://www.adprop.com.auCan a well read and researched investor offer information even if they dont own anything?
What makes a guru?
Is it what they do or what they know?
Investment Property Management
http://www.adprop.com.auGreat idea [biggrin]
What do real estate agents know about managing investment properties anyway? The work for a paycheck [biggrin]
Investment Property Management
http://www.adprop.com.auI know an absolutely fantastic PROPERTY advisor that can guide you towards investing and developing. His name is Chris White and he runs prospergroup.
I think their website is http://www.prospergroup.com.au
He has been mentoring us for years and is now a great friend and business associate.
Ask him for a consultation and please tell him Xenia sent you [biggrin]
Investment Property Management
http://www.adprop.com.auThere can be many many conditions on a contract for sale limited only by your imagination.
Subject to due diligence
subject to building reports, council approvals, selling of other house…. the list is endless.The question is what conditions do YOU need to have in the contract?
Investment Property Management
http://www.adprop.com.auHi Kum Yin,
I may be able to get his contact details. Email me.Investment Property Management
http://www.adprop.com.auwhat state is she in? If she is in SA send me a pm, I may be able to offer a suggestion.
I’m not familiar with tenancy legislation in any other state, just SA!
Investment Property Management
http://www.adprop.com.auReal estate agents are “supposed” to have a fiduciary duty to the vendors that they are acting for and therefore strive to achieve the best possible price. Good REAs will not disclose vendor details, but some will [biggrin]
Why not just put an ad in the paper that you buy properties from people facing foreclosure. That way vendors can ring you direct!
Investment Property Management
http://www.adprop.com.auGood on you Rick and Richard, you’ve both been long term mentors of mine [biggrin]
Thanks again
Investment Property Management
http://www.adprop.com.auOriginally posted by freeman cooper:Hi All,
I have One thing to say about Jamie peddling his wares.
Show us your guarantee.
He says that we can achieve great things if we pay to do some course, prove it and guarantee it, unconditionally.
If he guarantees that he can do it, can YOU guarantee that YOU can do it????
If you use the same gym Mr Universe uses, will you look the same as him in a few years? Works for him!!!!
The idea is to take responsibility [biggrin]
Investment Property Management
http://www.adprop.com.auI don’t know about other states, but in SA, it is definately NOT LEGAL to vary the amount of rent stated on the residentail tenacny agreement either by discounting or applying penalties.
Movie tickets OK [biggrin]
With commercail rents you can be more flexible because there is no governing regulating the industry. It is quite common in commercial leases to have all sorts of penalites and discounts as long as they are written in the contract and agreed to by both parties.
Investment Property Management
http://www.adprop.com.auThere is no doubt that wealth through property is made by capital appreciation over time but how many people can buy and hold over 5 negative cash flow properties for the long term while waiting for captial growth?
Certainly not me on my income, I can’t even support one [cigar]
The only reason we manage to keep accumulating properties is because the negative ones are balanced with positive cash flow
I don’t beleive in going out and buying an old whetherboard house in Alice springs for $90,000 just because the rent is $200 per week, if there is no capital growth, you are exposed to dept and the $200 per week is not going to do much in terms of wealth accumulation in the long term!!!
So, negative gearing means that you will hit a brick wall in terms of serviceability and for most people the max is 5 properties, positive cash flow without capital growth leaves you exposed to dept (high risk!!!), what is the solution….
Getting creative
We keep well away from rural areas, I like creatively manufactured cash flow on properties purchased where civilisation exists (people not cows produce capital growth in properties [biggrin] ). Properties that are well poised for capital appreciation and would have been negative cash flow in the absense of creative strategies.
We use 2 creative strategies:
1. Leasing with an option to purchase. This has the effect of turning some negative properties into positive.
2. Multi-tenancy accomodation (leasing out by the room). This can also turn negative cash flow into positive.Both of these strategies have the effect of turing a hobby into a business and cash flow from that busienss can then purchase more lucrative hobbies
That’s us, it works, we’ll keep doing it[biggrin]
Investment Property Management
http://www.adprop.com.auHi Nathan,
How did you go with this one? Found a suitable property yet?
Investment Property Management
http://www.adprop.com.auOriginally posted by aliandmike:Not sure how many people are stil looking at this one but thought I’d add my story anyway.
Me and my wife bought in Elizabeth Downs a couple of months ago, we live on the other side of town and can’t believe people live like that but hey, we don’t have to live there. Anyway, it took about a month for our PM (LJ Hooker actually) to find a decent tenant which was fine but after being vacant for a month someone stole the front screen door and all the fly screens from the windows the day after the tenant moved in!
As someone wrote previously, landlords insurance is a must in that area (probably anywhere). despite that experience we’re thinking we will look for another property in a similar location soon.
Cheers
MikeHi Mike,
What attracted you to the area?
Investment Property Management
http://www.adprop.com.auHi James,
I don’t like to recomend any course of action, everyone is different and it has to fit in with what your plan is, my suggestions is what I do here in SA.
Overall I like property portfolios to be balanced and to take care of themselves, I don’t like to be putting money every week into property. I’m way too lazy to do that [biggrin] I like balanced portfolios regardless of whether there are cash flow problems or not, they are just safer!!!
Not all properties gain capital appreciation at the same rate. We tend to identify those that would and hold for the long term. Negative cash flow in those properties is balanced by positive cash flow somewhere else.
Positive cash flow cannot be purchased in today’s market unless you buy rural properties (which I wouldn’t touch personally!!!).
Cash flow can be created using vendor financing or turning 4-5 bedroom houses into mult-tenancy accomodation.
Vendor financing means that you end up selling the house to the tenant. (if they choose to buy).
Example
Purchase price of property is $180,000 and market rent is $180 per week.
Lease with option to purchase for $230,000 for 2 years (create $50 equity in property).
Rent at $400 per week with $200 per week being credited to purchase price. That would make the property positive cash flow.
You are creating cash in this property both on a weekly basis and at sale time, that cash can fund other properties building your portfolio quicker.Hope it makes sense this time [biggrin]
Investment Property Management
http://www.adprop.com.au
