Hi All,
I just have a quick question about investment property management fees.I was told that real estate agencies are legally allowed to charge up to 7.45% of total rental income? Is this correct?
If so, this seems like a lot to me.
Is anyone willing to disclose how much he or she pays in management fees?
I would like to factor in an accurate percentage into my financial plan.Would anyone be interested in management services offered by a non-realestate company at a lower rate?
This would include management of everything that a real estate agency offers and more, from dealings with the bond board to sourcing inexpensive tradesmen for maintenance issues.
[king]Agents can legally charge ALOT more than 7.45%!
Cheaper property managers are not always the most cost effective!!!!
Property managers who are also investors can offer what you are talking about [biggrin]
The trick is to find a property manager who has their own property portfolio and can think outside the square with regards to maximising returns on investments.
What do you mean by non-real estate company? If you are dealing with other peoples money ie collecting rent, you need a trust account that is regulated and audited every year. It is illegal to hold money on behalf of other people in your own bank account.
To open up a trust account and be able to act on behalf of vendors for property transactions including property management, you need either a real estate license or a law degree
sorry but that’s just the law [biggrin]
Investment Property Management
http://www.adprop.com.auWow, with all the annual fees that are required to successfully maintain an IP it’s a wonder that anyone breaks even, let alone being positively geared.
It’s almost enough to be turned off real estate as an investment option.I suspected that a property management company would be bound by those laws that apply to trusts and other financial services.
Thanks for your feedback Dr.X.
[king]If you find a property manager who can successfully manage your property (that includes alot more than just finding a tenant and signing a lease), then you can use your free time to be looking for the next property deal rather than managing existing properties.
That’s the whole idea, leveraging from other peoples time [biggrin]
Investment Property Management
http://www.adprop.com.au
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