I’ll post this here also, for replies..
What are your fee’s around Oz ?
Just received a new, “Authority to Act as Managing Agent” from one of my PM’s. It’s been 1 yr now.
Fees have increased, markedly in some cases.
Letting fee-
From 8.5% to 9.35%Fixed letting fee for each new tenant-
From N/A to 2 weeks rent +GST (less 1 week if paid by tenant)Management fee-
From 8.5% to 9.35%Property condition report-
From $60 to $80Final bond inspection-
From $38.50 to $65Inventory reports-
From Nil to ‘by negotiation’Routine inspections-
From $38.50 to $45Court Attendances-
From Nil to $99 p/hrPostage and Petties-
From $5.50 p/mth to $5.50 p/mth (same)Meeting attendances-
From Nil to $99 p/hrAdvertising-
From ‘as applicable’ (?) to $60 p/wk max when letting IP*Has anyone else had a surprising increase ?
*What do you think of these fees ?REDWING
(IP in Perth WA)“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorOne Pm
7% 1 weeks rent for new tenant
4 ip’s
Other 8% 5.50 postage per month
1 weeks rent new tenant
1 IP
no other fees currentlyMelbourne
Hi Redwing,
All our IPs are at 5% PM fees + GST, with one week’s rent when re-letting, and that’s it, aside from a $2 per statement charge each month.
Oh nearly forgot, I’m in Melbourne.
Cheers,
Jo
Obviously we pay waaaaaaaay too much in Perth. I pay 8.5%.[comp]
Just signed up a new PM in Darwin.
10.5% and 1.5 weeks rent !!!
The dramas experienced with other PM’s recently in Darwin has made me desperate[crying]. If this mob actually ‘manage’ my IP I’m willing to pay.
Hi Monopoly,
My PM fees are the same as yours,except I don’t pay any statement fee.
They know if their fees increase,i’ll do my own managing.one property divided into two, how hard can it be?
After all I only work a minimum of eighty-fours hours a week.I’ve another eighty-four hours in the week that I do nothing with!bbruham.
That’s really [specool] bbruham, but I need more than that in sleep!!!!! [rolleyes4][rolleyes3][rolleyes5]
Cheers, [tongue]
Jo
NOT HAPPY JAN !!
REDWING
Marisa, we’ll have to start investing interstate
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorYou made me laugh bbruham. Nice one.[thumbsupanim]
lifexperience
Marissa and Redwing,
I think you might actaully pay 9.35%, I think the 8.5% is before the GST is added. At least that’s how mine adds up.
Regards
PKPS. mmm… so which other state do we start in?
good PM’s are hard to find. if you find one pay them very well.
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
Originally posted by redwing:NOT HAPPY JAN !!
REDWING
I don’t blame you redwing. It sounds like a blatant rip off to me and i’d be taking my business elsewhere.
You have a lot of leverage with PM fees because it is the only tangible asset an agency has.
Rent rolls sell for about $1,000 per property and are the only way of valueing an agency if it is sold as an ongoing business.
Listings don’t count because they aren’t really guaranteed and can’t be factored into.I pay 4% plus GST in Melbourne with a $4 statement fee and 1 weeks rent for letting fee.
xxx, my info has that rent rolls sell for $2K+ per property….
Cheers
MelOur Agency charges 6.5% + Gst, $3.00 per month statement fee and 1 weeks rent + Gst when placing new tenants, thats it!
If agents are charging additional fees what’s the management fee for??
A rent rolls value depends on many things, ie; how many multipule landlords, how long the property has been with the agency, are the properties in good condition or poor condition ?? etc.
The general rule in Qld is about $1.80 to $2.20 per dollar income depending on above factors.
Jarrod
Jarrod Lane Real Estate[biggrin]Some areas are monopolized. Although I have aproximately 7 agents to choose from in a smallish coastal region, all of them charge 9.9% and 1 week. No negotiation. It is a high rental area though.
Damn shame to think I’m loosing over $1200 every year for them to do nothing.
Damn.
Makes you re-evaluate Darwin, when doing your sums huh..
Didn’t realize it was so high.
Still, i believe there’s opportunities there
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorJust an Update..
I took Marisa’s advice about a year ago and told them I was happy with the current arrangement unless they wanted to terminate the contract.
I pointed out that I needed the 28 days notice as per the agreement if that was the case.
Monday I received this years letter stating ‘we are updating our “Instructions to act as Managing Agent Authorities†and enclose herewith a new authority for your signature.’
Period of Agency is indicated from 1-07-05 to 1-07-07; which doesn’t perturb me too much, a cursory check of the agreement indicates the prices are as the increases they tried before.
I’ll probably remind them we are increasing the rent $15 per week so they benefit there other than that I’m happy with the original agreement.
PK-
No it’s still 8.5% not 9.35% yet.
Interestingly when we let IP 3 I was surprised how negotiable the PM was, as I dropped all pricing on the contract prepared to negotiate up..but they accepted the lower prices..
REDWINGWhat is everyone else paying as this is the norm for WA???
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow Calculator
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