Hi,
I am wondering what are reasonable PM charges in QLD? One real estate is offering me ongoing 8.5%.
Also in the contract she sent to sign has these fees and charges:
Management fee – 3.85%
Negotiation and renewal fees – $22
Refurbishment fee – 10%
Internet Listing fee – $88
Administration fee – $3.30
Agent fees for lodging insurance claims – $110
Travel out of pocket expenses – $55Does that sound right? The property is in Browns Plains.
Thanks.
Ours in the Ipswich area charges as follows;
Management fee 8% + GST = 8.8%
Letting fee – 1 weeks rent
Postage & Petties $5.50
Tribunal fees (subject to approval of owner) $55.00
Advertising – at costCheers
StellaNo more than 8% + gst
Try another agent and negotiate downwards.Regards
Demkel
I think we charge 7.5% + GST.
Richard Taylor | Australia's leading private lender
Qlds007 wrote:I think we charge 7.5% + GST.Hi Richard,
Can you manage my property that I am buying in Browns Plains?
If so, what are the costs involved?
Thanks.
I pay 7.5% + GST for my property on the Gold Coast.
Sorry eternit we dont go down that far.
I have recently purchased an Agency with a large rent roll based in Clayfield so most of our properties are in and around the City and City North.
Richard Taylor | Australia's leading private lender
Qlds007 wrote:Sorry eternit we dont go down that far.I have recently purchased an Agency with a large rent roll based in Clayfield so most of our properties are in and around the City and City North.
Hi Richard,
No worries. Do you know any good PM in south who will do it for good price?
Thanks.
I really can't believe the wingers and tightwads on this site. The difference of one percent on a $300 a week property is $156 a year or $3 a week.
Now before everyone jumps on me and reminds me about the "look after the cents and the Dollars will look after themselves" adage, I can't help wondering just how many uncers some of you are getting trying to save the cents.
Jon
Jon Chown wrote:I really can't believe the wingers and tightwads on this site. The difference of one percent on a $300 a week property is $156 a year or $3 a week.Now before everyone jumps on me and reminds me about the "look after the cents and the Dollars will look after themselves" adage, I can't help wondering just how many uncers some of you are getting trying to save the cents.
Jon
Your comments may be fair enough on one IP Jon, but I must ask, were you always able to charge whatever you like in West End/South Brisbane, or has it just been in the last couple of years after it's got real popular?.
Another point would be if I had multiple properties would your argument still wash?
Example: the diference between your "Fair 8.8%" and the rate I get, of a flat 5% , with no extras, saves me $4000/year which increases cashflow to help buy other properties..
Do I get a lesser service? No, The guys I use actually do the same and in a lot of instances a far better service than most agents I have dealt with.
I'd keep shopping it around , I think 8% plus is a bit sharky.
Dave
You get what you pay for.
Seems a pretty good variety of deals posted here.
Industry rates generally start out at around 5.5% – 8.8% in the great south east.
Some agents are offering loss leader deals 0% for the first X number of months.
Look at the end of the day agents make very little out of managing properties. Many of them are swearing off rent rolls because the detract from they more profitable engine of sales and can be quite damaging to reputations.
There is no money in managing rentals. The money is obviously in developing relationships with potential sellers.
So, see what happens if you elude that you might sell the property sometime in the future and you're looking for a good managing and future sales agent. Great way to guarantee you get fantastic service.
The most important question to ask a property manager is "Do you own an investment property?".
Opportunity
Hate to say i do disagree with you there There is no money in managing rentals.
Wouldn't have stuck my hard earned into buying a large establish rent roll otherwise.
I agree under say 100 -125 properties there is no money in it and many property managers would be loosing money but at the other end of the scale it is certainly a profitable business run well.
Richard Taylor | Australia's leading private lender
Yeah I hear what you are saying. At around 4000 properties its start to be worth getting out of bed for.
Best of luck with the new venture.
Eternit,
I must say I got a shock when I first saw the fee on our first PM agreement @ 8.8% but I soon realised that that's the market rate (that property is not too far from your area; it's in Marsden). I got the same rate for our first property in Ipswich but have since negotiated the rate to 7.5% (5 properties in that area).
Having said that, I strongly believe in paying a reasonable rate (e.g. 8.8%) for a good PM service. Unfortunately our PM in Marsden is pretty sub-standard – young PM, poor communication (which is very important as we're overseas investors). The new PM for Ipswich is very proactive and firm; so I'm quite happy with her so far.
Email me if you're interested in her contact details. I believe she'll cover Browns Plains.
Opportunity In Everything wrote:Yeah I hear what you are saying. At around 4000 properties its start to be worth getting out of bed for.Best of luck with the new venture.
Even 500 properties @$240/week and 7% fees = $8400/week After paying 3 lots of wages and overheads, there is still a fair bit of beer money left over.
At 8.8% its more like $10,500/week.
Don't get me wrong, I don't have a problem paying fees, it's just that the majority of PM's in my opinion arent worth what they charge, especially if you break the fee down into an hourly rate.
Dave
Ok, i wasn't go to bring hard core figures into it but anyways.
Industry standard is about 110 – 130 properties per property manager. About 4 property managers for 500 rent roll.
Then if we're talking service there would be a need for a receptionist/property assistant full-time in the office too.
That's min 5 full time employees.
Going rate in Qld for properties managers (just gone up in September) $670.00 per week so you're looking at around $13000 a month including your assistant and plus super of say $1170. $14170 a month of wages + on-costs and employee expenses such as travel allowances.
Then add your premises expenses, electricity, telephone, insurances………lucky if you're making a few thousand a month.
Sell 1 house your average commission in Brisbane is $10,000+. That's one sale, not 500 owners & 1000+ tenants
7.5% + GST for me.
I only have 1 IP. The were going to charge 8.5% up front but she reduced to 7.5% without me even prompting.
I finally agreed with different agent on 7.5% + GST and 3$ for postage and petties and no other charges!!!
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