Agents Fees????

[asy]

Hi QB.

Our charges are 8.5% for management and rent collection,
$5.50 per month postage and petties (statement fee),
1 weeks letting fee per TENANT, not per lease renewal,
and a max of $110 per tribunal appearance, and then only that which is spent in court fees.

So, to answer your question, inspections are included Inspections are done after the first 3 months, then every 3-6 months dependant on tenant and discussion with owner.

The PM's have just under 100 properties each, and one works 4 days, the other works 5 days, but helps out on reception.

hope that helps,

asy

 

[Kevin Hockey]

Originally posted by asy
Hi QB.

Our charges are 8.5% for management and rent collection,
$5.50 per month postage and petties (statement fee),
1 weeks letting fee per TENANT, not per lease renewal,
and a max of $110 per tribunal appearance, and then only that which is spent in court fees.

So, to answer your question, inspections are included Inspections are done after the first 3 months, then every 3-6 months dependant on tenant and discussion with owner.

The PM's have just under 100 properties each, and one works 4 days, the other works 5 days, but helps out on reception.

hope that helps,

asy

Ours are similar, 8.5% plus GST - no postage and petties.
Tribunal is at cost
First inspection after 6 weeks and then 3 or 6 months afterwards depending on tenant and owner.

My Property Manager looks after all landlords and has an assistant to look after tenants.

Kev

www.nundahrealestate.com.au

 

[suggo]

Well I still reckon that the fee structures are a rip off!!

Why charge percentage? And the first week letting fee is bollocks as well if you ask me!!

I have a house that rents for $230 and one for $190 at one RE office. They do no more work to rent out the $230 per week house than they do for the $190 BUT they get $40 more. Their weekly workload for both houses are the same, YET they recieve more money from the $230 per week house for the same amount of work!! ******** if you ask me!!

Just my two cents worth!

 

[Aceyducey]

Originally posted by suggo
Well I still reckon that the fee structures are a rip off!!

Suggo,

Do it yourself then

And once you have enough properties you could always employ your own.

No-one is forced to use a property manager.

Cheers,

Aceyducey

 

[suggo]

I do agree with you Aceyducey, and I am learning so as to be able to do it myself. However not everyone is able to do this themselves and I think the fee structures are very dodgy. Maybe ACA should do an expose on them eh!! That'll really shake the industry up eh! lol

 

[Jakk]

Originally posted by suggo


Why charge percentage?

I agree Suggo, I feel there should just be a flat fee of $100-00 per property per week.

Now if that were the case, i would get back into property management.

regards

 

[Kevin Hockey]

Originally posted by suggo
Well I still reckon that the fee structures are a rip off!!

Why charge percentage? And the first week letting fee is bollocks as well if you ask me!!

I have a house that rents for $230 and one for $190 at one RE office. They do no more work to rent out the $230 per week house than they do for the $190 BUT they get $40 more. Their weekly workload for both houses are the same, YET they recieve more money from the $230 per week house for the same amount of work!! ******** if you ask me!!

Just my two cents worth!

I agree Suggo,

I'd like to see it changed too. The agents in some areas such as inner city Sydney are renting properties for up to $5000 per week, many around 1000-2000 pw. I think a set rate around 400-500 per new let may go close to covering the costs.

Kev

www.nundahrealestate.com.au

 

[Queen Bee]

Geez, what idiots paying $5,000 a week. I suppose they're corporates, that are in the office all day and all they do is sleep there.

 

[Les]

Ah, yeah, QB, but these "corporates" are probably attached, and their partners probably have a FANTASTIC view of the Harbour by day, and they enjoy the lights together at night...

And if the Co is picking up the cost, why not?

(Les, with tongue uncharacteristically in cheek...)

Regards,

 

[XBenX]

Originally posted by Queen Bee
Geez, what idiots paying $5,000 a week. I suppose they're corporates, that are in the office all day and all they do is sleep there.

id pay $5K a week for a pad if I could afford to and if the company is paying even better

 

[Kevin Hockey]

I was in McGrath's office recently and picked up a copy of their rental magazine. They had 2 properties renting for $5000 pw

Vaucluse - 9 Hillside Ave
The most remarkable examples of prestige and indulgence are presented in this 4 bedroom freestanding residence spanning over 3 levels.

Stunning views from Sydney CBD across Sydney Harbour
Double lock up garage, high security system on the property
Large garden terrace ideal for entertaining, Tuscan style heated pool
Back yard with a self contained flat for personnel
4 bedrooms - 2 bathrooms - 2 car garage
or

Rushcutters Bay 3502/1 Kings Cross Rd
Capturing unequalled 180 degree views over the city. Exceptional sub penthouse located on the 35th floor of the renowned "Elan".

3 large bedrooms
Marble ensuite bathrooms with dual sinks
Seperate study with internet access
Security undercover parking for up to 4 cars
3 bedrooms - 3 bathrooms - 4 car garage.

From there it went to 3300 pw then 2250 pw and 4 at 2000pw.
There was a further 29 properties available for rent between 1000 - 2000 pw.

Now with rental prices like those, assuming you can rent them, you can make money from a rent roll. When you are renting properties for 190+ per week, trust me ( I know I'm a real estate agent ) there isn't much in it. Ohh and...... in Sydney and every state except Qld, because the market is deregulated agents can charge 2 weeks rent for lets (or whatever they can).

So think long and hard before you ask for reform. I'm all for it, my prices will go up really fast. The Queensland Liberal party ran on deregulated fees in the last state election. The Qld Labor party is against deregulation because they know that fees will increase in many cases.

A property management dept is not easy to run properly AND profitably. Many agency owners scimp and save on running their PM business. Thats why many investors complain of no return phone calls, no contact, bad tenants, poor service etc. To make profit they go tight on key areas such as service and enough personel to do the job correctly.

And with solicitors advertising in every media outlet a "no win no fee" service for tenants to sue landlords you are taking a massive risk in doing it yourself in my opinion. If you don't believe me call Terri Scheer Insurance and ask for some examples of the claims being put forward (Ask about the guy with the ice cream). If you do, I'll bet you will think very seriously about having a professional do it for you and consider it great value too.

Kev

www.nundahrealestate.com.au

 

[suggo]

Well, I can't say I agree with all that Kev. You may be right but the threat of legal action against me is not going to scare me into paying someone to collect rent and not do much else. We are pulling our remaining two properties from the REA and do all four ourselves.

In regards to your prices going up for the PM services, your one of the few that might survive if the feeling I get from you is correct! You might survive, even thrive, because your one of the few that actually do things the right way! Too bad there are so few of you about!