All Topics / General Property / Property Managment Agents

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  • Profile photo of Kirby-FaheyKirby-Fahey
    Member
    @kirby-fahey
    Join Date: 2012
    Post Count: 1

    I am seek comment on the pros and cons on the use of Property Management Agents. I am currently reviewing the overhead expenses of my rental portfolio. I have 12 tenants all the properties are geographically within 45 minutes  of each other and whilst I use a number of agents the management fee percentage is the same.The percentage of my overall expense budget including interest on mortgages is 10.64% excluding the interest payment it is 41.55% . All my properties are cash flow positive.

    The fees I pay the agent would impact my surplus by 30%. However the full management of the properties would become my focus and responsibility. After analysis of the issue it is clear the sourcing of quality tenants is the core contribution the agent offers.

    I am keen to hear from others regarding this issue and why they choose to do it the way they do   

     Terry K-F

    Profile photo of Scott No MatesScott No Mates
    Participant
    @scott-no-mates
    Join Date: 2005
    Post Count: 3,856

    bundle your properties within small groups – there may be a discount for having several properties with one agent.

    Profile photo of DWolfeDWolfe
    Participant
    @dwolfe
    Join Date: 2009
    Post Count: 1,253

    Hi Terry,

    I guess the question is also about your life. So by having those properties managed by someone else you pretty much only have the occasional call or email.

    With 12 tenants, how many calls or emails or issues will you have to or really want to deal with. I think my tenants are all lovely. I've never met any of them, or spoken to them, and I don't live anywhere near any of them.

    I like to not have the hassle of people calling me or emailing about 'stuff'. I like not to have to worry if the rent is a day late, coz my bulldog managers are all over it. It's really a small price to pay.

    Just my opinion :)

    Cheers

    D

    DWolfe | www.homestagers.com.au
    http://www.homestagers.com.au
    Email Me

    Profile photo of CatalystCatalyst
    Participant
    @catalyst
    Join Date: 2008
    Post Count: 1,404

    New poster-, first post with a problem.

    Another new poster (first post) had a WONDERFUL solution with a recommendation for a company they use.

    How lucky!!!!.

    Profile photo of DWolfeDWolfe
    Participant
    @dwolfe
    Join Date: 2009
    Post Count: 1,253

    LOL!

    I chose to overlook that Catalyst and hope that others (especially newbies) may just take on board some advice. I was quite taken with the 12 properties part. As if you would even contemplate managing it yourself with 12! lol.

    Whether he's a fake or not, the advice remains the same, DIY = More work!

    Cheers

    D

    DWolfe | www.homestagers.com.au
    http://www.homestagers.com.au
    Email Me

    Profile photo of Tony FlemingTony Fleming
    Participant
    @the-dark-knight
    Join Date: 2008
    Post Count: 396
    Catalyst wrote:
    New poster-, first post with a problem.

    Another new poster (first post) had a WONDERFUL solution with a recommendation for a company they use.

    How lucky!!!!.

    Classic Catalyst

    Tony Fleming | Triumphant Property Group
    http://www.triumphantpropertygroup.com.au
    Email Me

    NSW Buyer's Agent specialising in Western Sydney-Blue Mountains-Orange-Albury

    Profile photo of jameswhittak98jameswhittak98
    Member
    @jameswhittak98
    Join Date: 2012
    Post Count: 3

    I am new to this investment thing, as I bought my first home and it has tenants until September 2013.  

    I need to know what to watch out for when finding a PM, the tenants already have a PM for the last two years,  also the good and bad things about changing PM's

    are there any good topics on this subject?

    James W

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