heya!
just wondering how much some of u pay for property management, as i read in one forum people saying that they thought 8% was dear.i thought gee that does sound a little on the dear side.i couldnt quite remember what we pay so i looked in the filing cabinet & found the fee schedule which says 10% !!!!!!shocked2]
cheers,
rustySorry Rusty,
But that sounds RIDICULOUSLY HIGH to me. I really can’t enter into the argument too much otherwise I’ll get shot by some in here….as I have been quoted in saying, if it is more than 5% I walk. I guess it varies from agency to agency, and like everything else is open to negotiation.
Alot of people pay 8% (from what I have read in this forum) and I put it down to different rates which may apply to different states. Not real sure………I am sure the others will clarify.
I do know one thing though, the more properties an agency is given to manage, the greater the discount (percentage) they will consider offering.
Cheers,
JO
thanks Jo,
we are just about to add another ip in the same town, so hopefully this may give us some leverage to bargain for a better rate.
cheers,
rustyHi Guys
Going rate for a PM in Tokoroa NZ is about 10% + GST.
But it varies around the country.Regards
hi all
yeah the standard going rate seems to be 10 percent in NZ ‘full service management’. Just depends what is included for this. 5 percent sounds good, but maybe they charge you through the back door instead, i.e. separately for this that and the other. letting fees, inspections, what not.
Also the poor (i.e. Sydney) landlords with 2-3, 5 percent yields can hardly afford more than 5 percent in fees, can they? They’re already losing money…
joy to the world
Hi Rusty,
As Mini said you need to consider the total fees payable when comparing REA. There are some who have lower management fees but make up for it with higher inspection etc. fees.
I have seen management fees vary from 7% – 10%.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Rusty
Derek is always on the ball..
I pay 7.5% + GST am in Perth. I actually thought this was OK compared to what I have been quoted. I guess at the end of the day I dont mind if I pay a little extra if I get top PM.Hi Rusty
I pay 8.8% (incl GST) and that includes 2 inspections a year and one free market appraisal a year. (NSW Dubbo)[biggrin]We only pay 6% but that is all inclusive and we have an agreement with the agent that any repairs up to $120 they do without calling us. Anything major they call and ask us what wqe would like to do. have never had a problem with our PM.
Chefman[biggrin]heya!
thanks for the info i don’t feel so bad now.
does anyone know if Steve has PM on all of his properties or just some?
cheers,
rustyAgreed, Sydney is a 5 to 7% market for PM, I pay 6%, in Campbelltown and in Liverpool but I pay 8.5% in an outback town in Queensland.
PS actualy I just worked out I only pay 4% in Liverpool (The Professionals)Not sure about the advantages of rent only managers. We had to change from an agency that manages 1300 properties with 4 PM, to one that has 300 and 2 PM, becuase they did not give a stuff about one of our IP being vacant.
On the other hand I hear that Pretti in Fairfield West have 2500 properties to manage and they are proverbialy tough on bad tenants, to a point that one of their PM was killed by an insane teneat.
Owners love them, and if you go to the residential tenancy tribunal you are bound to find Mr Pretti there or one of his associates, they live there.
Who else does PM only in Sydney?May God prosper you always.[biggrin]
MarcMarc,
Just because your PM’s company “lives” at the Tribunal, doesn’t mean he’s a good PM. Perdonally, I would see it as more of a reference if the PM has NEVER been to the Tribunal, rahter than one who lives there. Prevention is better than cure.
I don’t haggle with PM’s about their prices they charge, just like I don’t haggle with my solicitor, or for that matter, with prices at the chemist.
My Sydney PM will cost me 7% of rent for a property in the city.
kay henry
Most certainly agree about Pretti, he is not my PM by the way, but he seems to be very popular with investors and had an exclusive “Current affair” program dedicated once.
He inspects a house “live” and debates among other things the need for re-paining a wall becuase the tenenat put a nail to hang a picture on it. His exit phrase from the place was “See you at the tribunal!”
May God prosper you always.[biggrin]
MarcMarc said:
“He inspects a house “live” and debates among other things the need for re-paining a wall becuase the tenenat put a nail to hang a picture on it. His exit phrase from the place was “See you at the tribunal!”
So much for a tenant having an entitlement of “quiet enjoyment” at their premises…
He sounds like a right tosser to me. As an investor, I wouldn’t touch him with a ten-foot pole. Tenants are an asset. A PM like that sounds like a liability.
kay henry
Hi,
Good topic, I was just about to post a similar question.
My Management fees are 11.5% + GST (in Darwin)
That is one heck of a drain on the rental income, and I didn’t realise how high theses fees were until I read this post. I have been thinking of shopping around with other agents to compare fees. Just wondering if I changed management do you think it would upset the tennants?
nah, as long as their rent isn’t going up, i rekon they’ll get over it, i think more likely to upset current PM.[biggrin]
our PM sent us a letter last week to say they had done thier inspection and found that the laundry drain is blocked and our gardener is mowing the lawns too short, we had previously agreed that any maintanance (up to $200) would be aranged automatically and simply taken out of the monthly rental money, but when i contacted them, they had done nothing about either lawns or drains – isn’t that the whole idea of PM?!Hi,
Just thought I’d add my 10 cents worth….. I am a real estate agent and we charge 11% for PM and that includes quarterly inspections but nothing else outstanding but we do like to take photos….STACKS of photos at the ingoing inspection of your IP so that if the tennant claims damages and we have a doubt that the damages were there before we can have proof with the photos…… but besides that, 11% is our standard rate.
Where are poeple getting 5%!!!!!!????????
-Blondie[cowboy]
I pay 4% on one of my PM, and they do inspections and all the normal things, even get a newsletter with the owners opinion on the market.
May God prosper you always.[biggrin]
MarcOriginally posted by blondie_bec:11% is our standard rate.
Where are poeple getting 5%!!!!!!????????
Hi Blondie,
I am in Victoria, our IPs are scattered around outer (within 20km) Melbourne suburbs, at 5% Some agents do charge between 6-8% however, I know many who (like myself) only pay 5.
I am sure you do a great job, but……….
Sorry to say; you sure as heck wouldn’t be my PM (not with those rates) !!!!![angry2][angry2]Cheers,
Jo
We pay 5% in brisbane, but in Darwin we pay 9%.
By the way Kay it is worth asking your chemist how much a presciption costs as it can vary quite alot from one place to another, I was put on to this by my doctor who told me to ring around.
Erika
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