Agent Commission

[kweh]

Just wondering, are the agents' commission for managing your property negotiable? Currently, I think they are charging me around 6%. Are such rate reasonable?

 

[sailor]

I think that's a fantastic rate. I hear that in Perth the rate is into double figures. Meanwhile, up here in FNQ, I negotiated the PM down from 9% to 7.5% and I thought that was great.

 

[Tools]

6% is great, but if you don't ask for less, they won't offer it.

Tools

 

[Jayro]

in sydney we pay 7% but in Tassie we are paying 10%.

cheers Jayro

 

[Michael Yardney]

Just wondering, are the agents' commission for managing your property negotiable? Currently, I think they are charging me around 6%. Are such rate reasonable?

The answer to your question is yes - agents fees are negotiable.

But don't chose your property manager (or any professional you use) on fees alone - it could end up being a costly mistake

 

[Jayro]

As Michael mentioned, dont pick an agent on fee's alone. I made this mistake and it was not pritty. Agent was a couple of % cheaper but on rent of a couple of hundred dollars that doesnt work out to be a big diff at all. The difference in profesionalism between the 2 companies was huge. Im more than happy to pay the 10% after I saw what I was getting for 7.7%
At the end of the day the difference works out at about the cost of a coffee and a slice of cake. Its a no brainer really.

cheers Jayro

 

[Nth Brisbanite]

I pay 7% plus GST. I also get outstanding service. The more properties that I give them the lower the rate.

Even with the number of properties that I have, I haven't been able to negotiate down to 6% yet, so be happy with that figure. I do know someone who pays 5% and is still happy with the service.

 

[BoatBoy]

We negotiated down to 5%, with a promise from the principal that they were no better or worse than other agents around town.

After a few years of service I would suggest that they are better than a lot

I think our REA can do the better rate because he hasnt supplied new VW's or Rav4's for his PM's to drive around in.

Dave

 

[kristaje]

We pay one agent 5.5%! And no, we didn't bargain it down. Their rate ranges from 5.5-7.7% depends on the property condition (good condition = they don't expect much maintenance work = lower commission).

cheers, kristaje