Agents Fees????
- Thread starter ger
- Start date
Agents fees vary depending on many factors. In Melbourne, a 7% management fee is about the standard. Some agents will negotiate downwards if you have more IPs, or depending on other factors.
Keep in mind that you often do get what you pay for. I know of one agency that has very compeditive fees - they can afford to because they have lots of properties on their books and low overheads. This also means that their managers are overworked, underpaid and their service stinks as a result.
At the end of the day, the quality of service you get will often depend on the indiviual property manager and the relationship you build with them. A box of chocolates or a bottle of wine can go a long way at Christmas or on their birthday, and the cost to you is neglegeble.
Keep in mind that you often do get what you pay for. I know of one agency that has very compeditive fees - they can afford to because they have lots of properties on their books and low overheads. This also means that their managers are overworked, underpaid and their service stinks as a result.
At the end of the day, the quality of service you get will often depend on the indiviual property manager and the relationship you build with them. A box of chocolates or a bottle of wine can go a long way at Christmas or on their birthday, and the cost to you is neglegeble.
I have recently taken over all my IP's but when I was having them managed, I was paying around 8.5% plus GST, that's with 3 different RE's. Some weren't worth a cracker, having said that, I must praise "Carolan's First National" at Nambour on QLD's Sunshine Coast. When I informed them that I was taking it over myself, they couldn't have been more helpful and friendly. Just nice people. Makes a change. If I ever need to go back to PM's, I will not hesitate to give them a call. My tenant had been dealing with them for 2 years before I bought it and reckoned they were unreal.
Jim
Jim
PM in my town quoted 10% plus GST plus $5.50 per mth postage.
Said I'll be right thanks.
Said I'll be right thanks.
Paying 7% or thereabouts to a good PM, is an investment, not a cost.
Paying even 1% to a bad PM, is too much.
A Good PM is an integral cog in a well run, efficient property investment machine. Paying someone 7% to sweat the small stuff eliminates me from Majoring in Minors and getting on with the real business of Wealth Creation.
Brenda, I take my hat off to you if you are self managing 20+ properties on your own..........when do you have time to sleep, let alone perform those other duties that are required from a wife
regards
Paying even 1% to a bad PM, is too much.
A Good PM is an integral cog in a well run, efficient property investment machine. Paying someone 7% to sweat the small stuff eliminates me from Majoring in Minors and getting on with the real business of Wealth Creation.
Brenda, I take my hat off to you if you are self managing 20+ properties on your own..........when do you have time to sleep, let alone perform those other duties that are required from a wife
regards
Which is exactly how multi-tasking in computing operated (back when I understood a computer's insides)Originally posted by Aceyducey
Yes but our attention span is so short that we switch from one thing to another rapidly and it LOOKS like we're multi-tasking
Cheers,
Aceyducey
(I know you knew that Acey
)Originally posted by Queen Bee
Men can only do one thing at a time.
It doesn't matter HOW MANY things you can do at the one time; it is HOW WELL you do them - a mere male perspective. This is my 100th post so I thought I would be profound.
My PM's charge between 7.5% and 8.5% + GST and I believe they are worth every cent of it (they are good PM's). I rate my time at $200 per hour so this percentage equates to 25 mins per month. After tax, I suppose this equates to 12 mins a month (I'm in the top tax bracket). Once again, as I said , they are worth it - I have better things to do with my time.
KieranK
Wow, Kieran! $200 an hour? You obviously aren't a teacher/nurse/childcare worker/public servant.........
Now if you were to pay ME $200 an hour to manage your properties, I'd be signing up in a flash! Sounds like a good deal to me
But getting back to fees, it's also dependent on the area, as towns tend to charge more than capital cities. My fees range from 5.5% to 7.5%- pretty standard and I'm generally happy with the service I get. Just watch for extras like inspection fees, postage costs (can vary from $2.50 to $6 per mth) reletting fees and tribunal fees. Stipulate on your MA that you are to be contacted prior to any repairs, regardless of cost and that you're to be informed prior to every inspection so that you have the opportunity of attending (keeps the pms on their toes).
Now if you were to pay ME $200 an hour to manage your properties, I'd be signing up in a flash! Sounds like a good deal to me
But getting back to fees, it's also dependent on the area, as towns tend to charge more than capital cities. My fees range from 5.5% to 7.5%- pretty standard and I'm generally happy with the service I get. Just watch for extras like inspection fees, postage costs (can vary from $2.50 to $6 per mth) reletting fees and tribunal fees. Stipulate on your MA that you are to be contacted prior to any repairs, regardless of cost and that you're to be informed prior to every inspection so that you have the opportunity of attending (keeps the pms on their toes).
Thanks Kieran for bringing this back on topic. Sorry.
My flock of bats (9) costs me 5% (discount for buying from that agent, plus quantity discount). Peanuts compared to tribunal visits. Even if I valued my time at $20ph, I'd be ahead. Not even counting their suggestion to start letting out as furnished as they become vacant. The first unit I've done that for has paid agents' fees.
But we are talking bottom of the market in Queanbeyan here- not quite the $500 pw property which looks after itself completely.
Another property is 7% for 3 cottages.
And then there's DHA- 15%.
My flock of bats (9) costs me 5% (discount for buying from that agent, plus quantity discount). Peanuts compared to tribunal visits. Even if I valued my time at $20ph, I'd be ahead. Not even counting their suggestion to start letting out as furnished as they become vacant. The first unit I've done that for has paid agents' fees.
But we are talking bottom of the market in Queanbeyan here- not quite the $500 pw property which looks after itself completely.
Another property is 7% for 3 cottages.
And then there's DHA- 15%.
Queen Bee - Sorry guys, have to agree with the kiwi here. I prefer to employ females primarily for that reason.
Kierank - One of the best pieces of advice I have seen on the forum. Put a value on yourself.
As for us, our rate is 8.5% + GST. Most agents are 8-8.5 in our area. There are those in the area who drop down to a budget rate.
Kev
www.nundahrealestate.com.au
here. I prefer to employ females primarily for that reason. Kierank - One of the best pieces of advice I have seen on the forum. Put a value on yourself.
As for us, our rate is 8.5% + GST. Most agents are 8-8.5 in our area. There are those in the area who drop down to a budget rate.
Kev
www.nundahrealestate.com.au
In our area, rates go between 7 and 10%. We charge 8.5% (Inclusive of GST). We aren't the cheapest, nor the most exxy, but we believe we do a good job.
The other thing I will say, when you are interviewing prospectives is to ask how many properties each PM looks after.
If one charges 7% But each PM has 150 properties, and the other charges 9% but has 120 properties, it may be worth the extra...
asy
The other thing I will say, when you are interviewing prospectives is to ask how many properties each PM looks after.
If one charges 7% But each PM has 150 properties, and the other charges 9% but has 120 properties, it may be worth the extra...
asy
Property Management
I was getting shown around a property the other day by the owner of a large franchise RE. He said that he also did Property Management.
He charges 8% + GST plus $30 per inspection and recommended an inspection every 3 months.
Do yours charge for inspections, or is the price inclusive?
I was getting shown around a property the other day by the owner of a large franchise RE. He said that he also did Property Management.
He charges 8% + GST plus $30 per inspection and recommended an inspection every 3 months.
Do yours charge for inspections, or is the price inclusive?
