About to sign New management agency agreement!

[SeafordSunshine]

Hello all,
about to sign a new Management Agency Agreement in Surry Hills, NSW, with an agent who is local and has 15 yrs exp.
I want the best service and steely eyed vigilance of my 2br property, which is usually very easy to rent.
The recent tenants have broken their lease, (first time ever)and I want to use the opportunity to change agents.
For those of you who do, I would rather not self manage I travel quite a bit, and I am not giving that up just to be there!
I sold a property last December The agent I found most professional most happy with is too far out of area. (they charged a flat fee of 7% and a weeks rent +GST letting fee)
The new agent has sent me a mostly blank form, and asked me to fill in the blanks.
The rent is currently $690.....
My question is what would you expect to pay in Management fees?
I think I prefer 7.7% flat fee with 1 weeks rent per lease
any thought appreciated
Cheers
Seaford Sunshine

 

[DaveM]

If its a single property they manage for you, then 7% + GST is standard, as is a weeks rent + GST letting fee and around $5 + GST acct/statement fee.

 

[Propertunity]

If its a single property they manage for you, then 7% + GST is standard, as is a weeks rent + GST letting fee and around $5 + GST acct/statement fee.

^ ^ what he said.
We have no difficulty asking for and getting 6.6% without much effort. We've also negotiated 5.5% on occasions (which is easy enough to do if you have more than 1IP). Lower than that & they lose I interest in keeping a steely eye on much of anything.

 

[Dafnny De Dona]

Hello there, 7% seems very steep however agencies in that area seem to charge that due to their high overheads. In the past I personally have paid no more than 5.5% I am sure if you ask them to give you their best offer they will move their pricing (if they want the business). In many cases good service is not all about how much you pay my mother in law was paying 7% plus GST for the management of her property in Surry Hills and during this time no inspections were done and rent reviews where almost never done unless she asked for it. one word of advise see the termination notice as some management agency agreements ask for 60 days it can sometimes be tricky getting out of it without giving them 60 days worth of management fees.

 

[Empty Pockets]

Why nsw landlords do not write 0 days for termination is beyond me.

 

[Dafnny De Dona]

"Why nsw landlords do not write 0 days for termination is beyond me. "


The reason the agents don't put 0 is because they need the time to inform the tenants of the changes. Apart from that there are some agents that think they can need more than 30 days to do this and that's a bit slack. (taking into consideration that there are some tenants out there that are on monthly rents)

 

[russellpeter]

I give all my owners a signed letter saying is they are not happy with my service i will release them with 7 days notice.

plenty of time to get my paperwork together.

 

[travelbug]

Friends just got offered 5.5% with LJ Hooker at Pyrmont. Another one said they'd match it. They also got 2 months free and free advertising.
With $690- a week rent that's a decent income for them considering it wouldn't be any more work than a property that rents for $300.

 

[SeafordSunshine]

Thanks every one!

Hopefully this will be the last 'change of managers' in a while.

Cheers,
SeafordSunshine

 

[beachside]

Service comes before management fee - considering we are talking about maybe 3% differential at the most. I have paid from 6.5% (currently) to 8.0% and $3.50 - $5.00 PP. A good PM is hard to find, would be happy to pay 8.0% + gst for a good one. The P.M's I have used are f#cking useless, unfortunately the better ones I have met are not in my area. I would be more wary of young girls in a franchised agency than a private agency - prefer experience.

I have never signed a PM agreement with more than 28 days notice of termination. If they f#ck up they are gone ASAP. Bugger 60 days notice! Funnily I have sacked agents on most visits to the house - agents be aware

 

[Empty Pockets]

"Why nsw landlords do not write 0 days for termination is beyond me. "


The reason the agents don't put 0 is because they need the time to inform the tenants of the changes. Apart from that there are some agents that think they can need more than 30 days to do this and that's a bit slack. (taking into consideration that there are some tenants out there that are on monthly rents)

The agent concerned about the tenant, I don't think so. You must be an agent.