All Topics / Help Needed! / Agent’s Commission Too HIGH ???

Viewing 8 posts - 1 through 8 (of 8 total)
  • Profile photo of yobabyobab
    Member
    @yobab
    Join Date: 2005
    Post Count: 1
    August 17, 2005 - 9:01 am

    Hi All,

    I just bought my first IP in QLD (I’m from Sydney) and I am about to sign an Agent Property Management Agreement with the current agent.

    The commission he wants to charge me is 5% of rent (plus GST) and a management fee of 3.5% of rent (plus GST).

    Is this reasonable or too much?

    Would appreciate any replies. Thanks.

    YOBAB

    Profile photo of Pro-ActivePro-Active
    Member
    @pro-active
    Join Date: 2005
    Post Count: 66
    August 17, 2005 - 9:22 am

    That’s 9.35% inclusive of GST. Pretty high, in my books. Shop around for a better fee- between 6.5-8% is more of a standard in Brisbane.

    Cheers,
    Pro-Active

    http://www.invested.com.au

    Profile photo of MIKALAMIKALA
    Member
    @mikala
    Join Date: 2005
    Post Count: 64
    August 17, 2005 - 9:22 am

    HiYobab,

    I pay 7.5% plus GST for mine so 8.5% plus GST is in the ball park – did you negotiate ?
    I just signed recently agreement for IP in Qld – they usually charge 8.5% plus but I just told them what I was willing to pay as this is what I pay in NSW….

    MIKALA

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    August 17, 2005 - 9:49 am

    Yobab

    Try someone like Pro rentals in Brissie i beleive they are a lot lower than than.

    Must admit for the buy / hold properties i own over Qld i would never pay that sort of rate.

    Cheers Richard
    [email protected]
    http://www.yourstatefinance.com

    IP funding and US property finance
    our speciality

    Richard Taylor | Australia's leading private lender

    Profile photo of ErwinTjongErwinTjong
    Participant
    @erwin_groper
    Join Date: 2004
    Post Count: 6
    September 13, 2005 - 10:59 pm

    Hi All,
    I had a same case with Yobab, i’m from sydney have first IP in Qld with tenant.
    The agent commission :
    – New let 1st week rent + GST
    – re-let 1/2 wks rent + GST
    – normal 7.5% + GST
    – Other expense $7.5 + GST (such as photo copy,telp etc)

    are these reasonable or too much?

    Much appreciate any replies, Thanks in advance.

    Erwin

    ErwinTjong
    Email Me

    Profile photo of ShwingShwing
    Participant
    @shwing
    Join Date: 2005
    Post Count: 219
    September 13, 2005 - 11:21 pm

    You don’t say where in QLD. In Nth QLD this is pretty much the standard, and they don’t have much give unless you hold multiple properties with them.

    The thieves in WA charge you a similar fee + will make you pay for inspections, annual report and what not.

    Remember cheap can also be nasty.

    Mal

    Getting out of your comfort zone, can help you become comfortable

    Profile photo of ErwinTjongErwinTjong
    Participant
    @erwin_groper
    Join Date: 2004
    Post Count: 6
    September 13, 2005 - 11:49 pm

    The IP in Gold Coast area.
    Anyway thanks for your reply Mal.

    Cheers,

    Erwin

    ErwinTjong
    Email Me

    Profile photo of GPSnetworkGPSnetwork
    Member
    @gpsnetwork
    Join Date: 2005
    Post Count: 313
    September 13, 2005 - 11:51 pm

    For properties we have in logan, the local agent said will charge us and our clients 7%, I think thats more like it, similar to Sydney..

    Roy H.
    L.R.E.A., Dip FS (FP)
    Guardian Property Specialists (GPS)
    http://www.gpsnetwork.com.au

Viewing 8 posts - 1 through 8 (of 8 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.