Hi all,
I've been pondering what to charge and how to deal with many of the issues that I have seen in previous jobs when I go out on my own (Residential Property Management - just me - and eventually 1 support staff member) and would really like some feedback.
I've considered the 2 extremes as well as a middle of the road option:
Extreme 1: a single percentage management fee - no other fees - no letting fee - no postage & sundries - no renewal fee etc. Obviously though the fee would have to be quite high - i.e. 12-13%
Extreme 2: a fee for absolutely everything - postage & petties - leasing - renewal - rent receipt - maintenance etc. & allow people to pick & choose what they want done - I.e. just a condition report, or just inspections or just rent receipt etc. BUT this would remove a great deal of property knowledge from the manager & make the overall management ineffective.
Middle of the road (currently my preferred option): 12 month quoted management agreement covering everything. The idea is that I view the property & estimate what it will cost me to manage it then quote a fixed figure accordingly which can be deducted from credit card monthly (I have credit card facilities (& therefore more points - if you are on one of those schemes) - very unusual for an agent & landlords would then receive the rental amount without the management fee deducted). The idea here is that landlords can budget more effectively, I don't waste my time with really time consuming properties that don't return a good income to anyone and people with ideal tenants and problem free properties aren't subsidising landlords with poor invesments (which happens a LOT). Then at the end of the year, I review what the management actually cost and quote an amount for the following year based on how the first year went...etc.etc.etc.
I would really appreciate opinions from both landlords and other agents on this.
Kind regards,
Jody Foster
I've been pondering what to charge and how to deal with many of the issues that I have seen in previous jobs when I go out on my own (Residential Property Management - just me - and eventually 1 support staff member) and would really like some feedback.
I've considered the 2 extremes as well as a middle of the road option:
Extreme 1: a single percentage management fee - no other fees - no letting fee - no postage & sundries - no renewal fee etc. Obviously though the fee would have to be quite high - i.e. 12-13%
Extreme 2: a fee for absolutely everything - postage & petties - leasing - renewal - rent receipt - maintenance etc. & allow people to pick & choose what they want done - I.e. just a condition report, or just inspections or just rent receipt etc. BUT this would remove a great deal of property knowledge from the manager & make the overall management ineffective.
Middle of the road (currently my preferred option): 12 month quoted management agreement covering everything. The idea is that I view the property & estimate what it will cost me to manage it then quote a fixed figure accordingly which can be deducted from credit card monthly (I have credit card facilities (& therefore more points - if you are on one of those schemes) - very unusual for an agent & landlords would then receive the rental amount without the management fee deducted). The idea here is that landlords can budget more effectively, I don't waste my time with really time consuming properties that don't return a good income to anyone and people with ideal tenants and problem free properties aren't subsidising landlords with poor invesments (which happens a LOT). Then at the end of the year, I review what the management actually cost and quote an amount for the following year based on how the first year went...etc.etc.etc.
I would really appreciate opinions from both landlords and other agents on this.
Kind regards,
Jody Foster