11% too much for PM?
- Thread starter Ace
- Start date
Ace said:I'm putting a shack on the market for $120pw in the bush. The PM has a tenant and has quoted 11% to manage it. Is this too much? I'm wondering if rent being low has tempted the PM to go for a high percentage.
Ace
Ace, this would be reasonable if it was a Full Service Fee. i.e the 11% also covered statements, tribunal appearances etc etc and if you didnt also have to pay a Letting Fee that can often be 1-2 weeks rent on top of your management fee.
How far from the property are you? Are you close enough to self manage?
Ace,
If her and her boss are so quick at giving away their own money how confident are you in having them handle yours.
How confident are you at having them negotiate the mile long list of issues which are destined to happen. So far their negotiation skills are at an all time zero. How committed will they be to maintaining and increasing the rental amount as it should be.
8% is a reasonable rate to pay. In Brisbane most rates are 7.5 - 8.5%. Only difference is the majority are well above $120pw. It costs the same to look after a property at $120 pw as it does $520 pw. In fact it can be cheaper to look after a higher price property. It was because of the lower rental I figured they were charging the higher scale and I would have explained that to justify the rate. I think they have lost credibility by asking 11% and quickly doing a backflip without any argument whatsoever.
Hope all goes well.
Kev
www.nundahrealestate.com.au
If her and her boss are so quick at giving away their own money how confident are you in having them handle yours.
How confident are you at having them negotiate the mile long list of issues which are destined to happen. So far their negotiation skills are at an all time zero. How committed will they be to maintaining and increasing the rental amount as it should be.
8% is a reasonable rate to pay. In Brisbane most rates are 7.5 - 8.5%. Only difference is the majority are well above $120pw. It costs the same to look after a property at $120 pw as it does $520 pw. In fact it can be cheaper to look after a higher price property. It was because of the lower rental I figured they were charging the higher scale and I would have explained that to justify the rate. I think they have lost credibility by asking 11% and quickly doing a backflip without any argument whatsoever.
Hope all goes well.
Kev
www.nundahrealestate.com.au
how negotiable are pms on rates generally??
in bris im quoted 8.5 or 8.8 inc gst plus statement fees, never lower, and seldom higher. in rocky 8.0 inc gst, plus statement fees.
do you guys routinely negotiate on the management rates?? what are the trade offs against the rate?? ie. to get the lower than quoted rates, what can we negotiate with, apart from saying yes or no to the deal?
in bris im quoted 8.5 or 8.8 inc gst plus statement fees, never lower, and seldom higher. in rocky 8.0 inc gst, plus statement fees.
do you guys routinely negotiate on the management rates?? what are the trade offs against the rate?? ie. to get the lower than quoted rates, what can we negotiate with, apart from saying yes or no to the deal?
Management fees in Adelaide
We are currently looking to buy in Adelaide. I actually laughed when told the management costs.
PM1. 10% + GST, plus advertising, + 2 weeks rent for a new tenant & 1 week rent for a re-let.
PM2. 8% + GST, $5 postage & petties, 1 weeks rent for letting & re-letting, & $12.50 per qtr for the inspection.
Currently we have 3 IP's in Brissy, we pay 7.5% + GST, & 1 weeks rent for a new tenant let. We pay nothing for a new lease for a current tenant. One Pm charges $5 pm for postage & petties & $25 for an end of year statement (optional). The other PM charges $3 postage & petties & includes an annual statement.
Can someone tell me the going rate in Adelaide, it seems excessive compared to Qld.
Thanks
Blossomoz
We are currently looking to buy in Adelaide. I actually laughed when told the management costs.
PM1. 10% + GST, plus advertising, + 2 weeks rent for a new tenant & 1 week rent for a re-let.
PM2. 8% + GST, $5 postage & petties, 1 weeks rent for letting & re-letting, & $12.50 per qtr for the inspection.
Currently we have 3 IP's in Brissy, we pay 7.5% + GST, & 1 weeks rent for a new tenant let. We pay nothing for a new lease for a current tenant. One Pm charges $5 pm for postage & petties & $25 for an end of year statement (optional). The other PM charges $3 postage & petties & includes an annual statement.
Can someone tell me the going rate in Adelaide, it seems excessive compared to Qld.
Thanks
Blossomoz
Blossomoz,
Qld is still a regulated market, unlike the rest of Aussie. If we could charge 2 weeks for new lets most would. 7.5% + GST is common here but Adelaide is a long way away. WA's fees are even higher.
Kev
www.nundahrealestate.com.au
Qld is still a regulated market, unlike the rest of Aussie. If we could charge 2 weeks for new lets most would. 7.5% + GST is common here but Adelaide is a long way away. WA's fees are even higher.
Kev
www.nundahrealestate.com.au
blossomoz said:
Yeah....I saw this guy at the comedy festival the other week, great routine... you forgot to mention the part about the mandatory christmas and birthday presents for him and his 4 kids, regular monthly lunches at the landlords expense, the 2 weeks free use of the landlords holiday home......
he was a riot, nearly brought the house down.
Didn't realise he had a day job as a Property Manager though.
regards
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The PM of a property in Gold Coast is charging me 9% (inc. GST) which I thought was a bit high. But just noticed on the last statement that when the rent went up, he started charging a $5 per week charge for garden maintenance. Equates to 11% management fee!!
Has anyone come across this before? Is this the norm in QLD?
I questioned him about it and he is going to get back to me. Any advice appreciated.
Has anyone come across this before? Is this the norm in QLD?
I questioned him about it and he is going to get back to me. Any advice appreciated.
PM charges Canberra
Hi, can anyone with IP's in CNB give me an idea of what percentage they're charged? My Mum's just told me her PM rate is 10%. Bit high? (It's just the 1 IP).
Cheers,
Hi, can anyone with IP's in CNB give me an idea of what percentage they're charged? My Mum's just told me her PM rate is 10%. Bit high? (It's just the 1 IP).
Cheers,
Thanks Geoff. Thought 7-8% was more reasonable.
Cheers,
Cheers,
