I received an Exclusive Management Agency Agreement for my residential property today from the Real Estate Agency that I have spoken to in regard to the Managment of my Investment Property.
Before I sign, just wondering if I could run some numbers by you guys.
The property is in Country NSW and I advertising it for $400 per week. I live in Victoria and it would be very difficult for me to manage this myself.
Agent’s Remuneration
Letting Fee: 110% nett one weeks rent
Tenancy Agreement Prep Fee: $18.00
Management Fee 8.8% per month
Admin Fee $4.40 per month
Advert in Local Paper $30.00
Sign up for a period of 12 months.Does this sound like a fair deal or unreasonable? Are there people on the forum that would not sign this or is it standard.
Any comment’s would be great.
THX
[biggrin]Am I the only person on this forum that uses a Property Manager to manage their investment property?
Surely not.
[ohno]If the agent is doing a good job it sounds fine. The 8.8% does sound a little high. In Victoria and Id be suprised if it was diferent in NSW you cannot make a landlord sign a 12 month management agreement. They can get you to sign a sole agency to let the property. I would suggest that you sign a sole agency for 60 days. If you are unhappy with the service you do not have to stay there.
Nigel Kibel
http://www.propertyknowhow.com.au
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Thanks Nigel,
What would you be prepared to pay?
(I used the same PM in 2005 and was happy with the service)Hi Tara30,
Its not unusual to pay 8.8% in country towns. I am assuming that includes GST. Other charges are also common and within reasonable amount.
That said, have you shopped around? You could contact couple of other property managers and ask them to give you a rental appraisal and schedule of their services & charges.cheers,
Sanjiv Gupta“There is no passion to be found playing small – in settling for a life that is less than the one you are capable of living.†– Nelson Mandela
People seem to be very focused on the % of management. The whole picture should be looked at.
I think preparing a lease should be part of the letting and management! Is it possible to let and manage a property if they don’t prepare a lease? No! So why is there an extra charge for it? What does the letting fee actually involve if it does not include lease preparation?
I would also ask if they charge extra to represent you at a tribunal hearing if needed? Do they charge extra for insurance claims? Do they do ongoing inspections of the property? Is there a charge? How do they handlle rent arrears?
To me all these are more important than comparing one or 2 percent in management fees!!!Here is a list of questions you should be asking the property manager:
http://www.adprop.com.au/cgi-bin/page.cgi?id=288
It is for SA and we don’t work in NSW but you can get an idea and adjust it to suit!Also, If you wan’t to compare our fee schedule again just as a comparison, please download it from the web site or email me if you have trouble finind it. [email protected]!
All the best [biggrin]
Investment Property Management
http://www.adprop.com.auIN SA there is no lease letting fee, I had agents in NSW and they used to charge that fee to the tenant. AS for the agents fee 8.8% including GST doesn’t sound steep provided most things are incorporated in that. The only other fee I usually pee other than a management fee is one week letting fee when they get me a new tenant, and advertising at cost for that tenant.
I also sign all my agreements 12 months at a time. If I am not happy with their service I have been released from the contract without any dramas with only a few weeks notice.
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