All Topics / General Property / Perth Property Management Costs

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  • Profile photo of TheBishTheBish
    Participant
    @thebish
    Join Date: 2007
    Post Count: 59

    Hi All

    I know there has been a lot written about how much Perth Real Estate agents are ripping off landlords with high property management costs but does anybody know about any formal complaints having been made to Fair Trading or local members of parliament etc.

    I see enough evidence on Whirlpool and other sites to suggest there is a consistent feeling on this problem in WA.

    Profile photo of D.T.D.T.
    Participant
    @dtraeger
    Join Date: 2014
    Post Count: 128

    Its a free market economy. No ones ripping anyone off. You’re free to self manage if you don’t want to pay the cost, or to shop around for best price you can find. Also, price doesn’t always correlate with service.

    I’ve done extensive research on opening an agency in both Perth and interstate. And despite Perth charging a heap more, I believe interstate would be more profitable. Perth staff are expensive, Perth office leases are expensive, the bottom line isn’t any better despite charging more.

    D.T. | DT Property Management
    http://www.dtproperty.com.au
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    Adelaide Property Management - whole Adelaide metro

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    What sort of management fees are we talking?

    I would have thought that the Perth market would be large enough to fuel competition.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
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    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of TerrywTerryw
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    @terryw
    Join Date: 2001
    Post Count: 16,213

    Collusion – ACCC should be the point of call.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of D.T.D.T.
    Participant
    @dtraeger
    Join Date: 2014
    Post Count: 128

    What sort of management fees are we talking?

    I would have thought that the Perth market would be large enough to fuel competition.

    Cheers

    Jamie

    Heaps of places in Perth charge 9.35% + GST + 2 weeks letting fee + monthly admin fee + yearly fee + condition report fee + inspection fee + tribunal fee + lease renewal fee + bum scratching fee + GST on all of the above

    D.T. | DT Property Management
    http://www.dtproperty.com.au
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    Adelaide Property Management - whole Adelaide metro

    Profile photo of Corey BattCorey Batt
    Participant
    @cjaysa
    Join Date: 2012
    Post Count: 1,010

    Market economy, as DT has mentioned – if there is the potential to open an agency running on lower margins as their point of difference, it will most certainly emerge. Some of the business administration costs in WA are quite high.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
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    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    Heaps of places in Perth charge 9.35% + GST + 2 weeks letting fee + monthly admin fee + yearly fee + condition report fee + inspection fee + tribunal fee + lease renewal fee + bum scratching fee + GST on all of the above
    [/quote]

    Sounds similar to Canberra – apart from the 2 weeks letting fee, I think it’s usually one week.

    As mentioned above – the market determines price and Perth is too big for PM’s to collude.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
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    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of TheBishTheBish
    Participant
    @thebish
    Join Date: 2007
    Post Count: 59

    Thanks for the responses

    I’m collating some facts V Sydney I’ll provide soon

    • This reply was modified 10 years, 5 months ago by Profile photo of TheBish TheBish.
    Profile photo of TheBishTheBish
    Participant
    @thebish
    Join Date: 2007
    Post Count: 59

    Here are the charges – Perth v Sydney

    Charge Perth ~ Sydney
    Letting Fee 2 Weeks + GST ~110% of Weekly Rent
    Agreement Fee Nil ~ $16.50
    Management Fee 9.35% ~ 7.70%
    Admin Fee pm Nil ~$5.50
    Inspection Reports $49.50 ~Nil
    Final Inspection $99 ~ Nil
    Property Condition $220 ~ Nil
    Fixed Lease Renewal $55 ~Nil
    To Let Sign $44 ~ Nil
    Inventory Report $165 ~Nil

    Had to stop typing up the Perth charges – felt RSI coming on.

    • This reply was modified 10 years, 5 months ago by Profile photo of TheBish TheBish.
    • This reply was modified 10 years, 5 months ago by Profile photo of TheBish TheBish.
    Profile photo of TheBishTheBish
    Participant
    @thebish
    Join Date: 2007
    Post Count: 59

    Did somebody say charges are higher in Perth because of salaries – just did a quick look in Seek – Sydney v Perth.

    Its very consistent the average Property Manager in both cities is paid about $70k – its very consistent across many adverts on Seek.

    Any body got any other excuses for the price difference?

    Profile photo of D.T.D.T.
    Participant
    @dtraeger
    Join Date: 2014
    Post Count: 128

    I don’t understand what you’re getting at. If you don’t like the price of the service shop around til you find one you do. Or self manage. Or if you think they’re making a fortune, join them :)

    D.T. | DT Property Management
    http://www.dtproperty.com.au
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    Adelaide Property Management - whole Adelaide metro

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    I think the problem in WA is that the price has somehow come out at that level and all the players are just keeping the status quo – If your competition is charging high prices you can too. All it would take is one or two new entrants to come in at national prices and then market forces would come into play.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TheBishTheBish
    Participant
    @thebish
    Join Date: 2007
    Post Count: 59

    What I’m getting at and the evidence is clear for all to see is landlords in WA are getting ripped off compared to other parts of Australia.

    So, what do we need to do about it?

    Firstly, landlords need to negotiate – use the eastern states numbers as the lever and when the agents say costs are higher then over east then tell ’em that just aint true – refer my salary stats $70k for a PM – same as on the east.

    Run Property are coming in the next 12 months or so – competition is coming.

    Shop around – don’t just suck it up!

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    Bish – look at it as an opportunity. You’ve identified a flaw in the market – introduce a lower cost PM service on the West Coast. Instead of fighting it – capitalise on it :-)

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
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    Mortgage Broker assisting clients Australia wide Email: [email protected]

Viewing 14 posts - 1 through 14 (of 14 total)

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