Hi all, just wanting to know what is the usual % you pay a property manager to look after a rental property. i am currently in the middle of purchasing a unit rented for $110.00 and the property managers are charging 3.5% on rent commission, 5% management fee plus $8/ month for admin expenses. is this about the norm??
Originally posted by alee:Hi all, just wanting to know what is the usual % you pay a property manager to look after a rental property. i am currently in the middle of purchasing a unit rented for $110.00 and the property managers are charging 3.5% on rent commission, 5% management fee plus $8/ month for admin expenses. is this about the norm??
Don’t skimp on this – pay for a good property manager, they can add considerable value to your property.
Fees vary from state to state and are derugulated so agencies can charge whatever they want. WHat you have been quoted is on the low side, so I would check carefully what you are getting for your money.
If you wnat to know what to look for in a PM check this link
http://www.rentingmelbourne.com.au/html/s02_article/article_view.asp?art_id=109
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
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FREE subscription http://www.metropole.com.auAlee,
We pay from 7% to 8% agent fee + $2 -$4 per month Admin Fee with GST payable on total deduction. Which I think “stinks” Why pay GST on commission when we do not pay if PM ourselves.
Fine to pay GST on collecting rent as this is a service but “urks” me to pay GST on Admin. fee as well . The way it appears—you will pay about 8.5%on rent but $8 admin fee seems a lot.Agent getting $18 per week on your proprty.Check for other agents in area but $8 admin fee seems over the top to me even more so if GST is on top.Cheers for now LenWe pay 8.8% management fee, and $3 administration fee (includes statements&postage) and $25 for the annual statement in June. I’m very happy to pay this to a good manager.
Celivia
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