Approach PMs in f'ston together for discount? Interested?

[Skeetaboat]

Hi all,

Just wondering if anyone is looking to rent out their IP in frankston & surrounds in the next month or so and wants to approach PMs together for a discount on PM fees?

PM or post here if interested

 

[Lil Skater]

Just quietly - it won't happen unless you have a substantial amount of properties for them.

If it's just yourself and one other with say 2 properties each, it won't happen unless you can negotiate an agreement that they will receive future properties an you will recommend them to others. Which is dangerous if you haven't had them manage your properties before as you don't know what their management is like.

 

[Skeetaboat]

One agent has already agreed to a discount. Whether significant or not is yet to be discussed.

 

[twobobsworth]

I thought the question should be who is the best property mgr.

I'd be happy to pay them 1% to do the job properly.

 

[Skeetaboat]

I thought the question should be who is the best property mgr.

I'd be happy to pay them 1% to do the job properly.

Absolutely, this is the most important question. I have already asked this in another thread. No recommendations yet, just 'steer clear of X, Y, Z and A, B, and C' !!!

But if you've got a PM recommendation in the Frankston area, please do share.

And then when I find the best one, we can ask them for a discount! No harm in trying

 

[kissfan]

I thought the question should be who is the best property mgr.

I'd be happy to pay them 1% to do the job properly.

1%?!?!

Or did you mean 1% higher than what other agents are charging (because they are doing a good job)?

Regards
Marty

 

[twobobsworth]

1%?!?!

Or did you mean 1% higher than what other agents are charging (because they are doing a good job)?

Regards
Marty

Soz, I meant 1% higher than another.

 

[buzzlightyear]

PM fees IMO are actually one of the least important differentiating factors.

A few % off the 'rack' rate, is gone in an instant if they manage tenants poorly, are not able to reduce vacancy period when tenants leave.

Aside from the search for the good ones, which is really the individual PM or assistant PM's, not the REA brand, it is then your relationship with the PM that will dictate how mutually beneficial the commercial relationship is.

What happens commercially if one or more of your consortia want to leave for whatever reason to another REA, whilst you are happy with their service? Its one thing bringing multiple mutually owned properties, but separate owners bringing their properties to form some sort of consortia is another. But hey, there will always be someone who wants to win the race to the bottom i.e fees and service

Best of luck, I may and have been wrong before.

 

[Monopoly]

PM fees IMO are actually one of the least important differentiating factors.

A few % off the 'rack' rate, is gone in an instant if they manage tenants poorly, are not able to reduce vacancy period when tenants leave.

Big elephant stamp to you Buzz; you're absolutely correct. A (half or full) percentage point here or there is not going to make much difference in the grand scheme of things, but poor management of the property most certainly will.

I'd rather pay a tad more and get good service; ie. PMs that will work with my property interest in mind, than save 1% on the monthly management fees.

Tho' I've made that mistake before thinking the lower commission was a great "bargain" only to find I got more than I "bargained" for!!!!

 

[Skeetaboat]

The trouble is finding the PM that is worth the extra $$ - you can't tell how good they are until you've engaged them. Are you saying that the more expensive ones are usually the better ones?

At $2000 per annum it's a big addition to holding costs.

With regard to someone leaving, I imagine that they would just revert the remaining person back to the ordinary fees.

 

[Monopoly]

Are you saying that the more expensive ones are usually the better ones?

No, but what I am saying is that just because they are prepared to drop the fees lower than the going average, doesn't necessarily mean they're the better choice and of course the same can be said of the extreme (ie. the more expensive ones). Unless you learn of their reputation by word-of-mouth (which can be a great source of information in this business) the only way to gauge is through (unfortunately) `trial and error'. Try them out, see how they manage the property/ies; if they don't meet the grade/your expectations then take your business elsewhere!!

At $2000 per annum it's a big addition to holding costs.

On what kind of return?? If the overall annual return is (say) $26,000 (or $500 p/w) then it's not too bad, but if the fees are calculated on a weekly rent of $300 p/w, then hell yeah....IT'S EXCESSIVE!!!

With regard to someone leaving, I imagine that they would just revert the remaining person back to the ordinary fees.

Who are you referring to here??? If it is the tenant of your managed property...why would a tenant's exit mean YOU would have your fees reverted back to the higher rate?? The managment fees are not calculated on how many people occupy a premises, well not that I'm aware; certainly not since I've been in this game (some 29 years now) but for anyone who this happens to my advice to them would be GET ANOTHER AGENT!!! I'd be curious to learn if this DOES occur for anyone...could the dumb smuck who this happens to please stand up!! LOL

 

[meconium]

The trouble is finding the PM that is worth the extra $$ - you can't tell how good they are until you've engaged them.

As an owner of multiple properties, yes, so true

you saying that the more expensive ones are usually the better ones? .

Sadly no. Not that I'd mind paying a bit extra to get quality service. Sadly, it doesn't happen. Paying more makes no difference - they don't give a damn.

So yes, whilst there are abundant capital gains to be had in Frankston, one has to be extremely wary of agents. I've been saying this for a long time. Ignore this tidbit at your peril.

Of course we HAVE to deal with agents, there's no choice. But that does not mean we should trust em - they are entirely unreliable. Tread carefully and stand up to their nonsense.

 

[JamesGG]

Who are you referring to here??? If it is the tenant of your managed property...why would a tenant's exit mean YOU would have your fees reverted back to the higher rate??

I may be mistaken, but, I think the OP was referring to a scenario where the lower fee was agreed on the basis on multiple landlords signing on at once. So, if one of those investors was to leave the agency, the discounted rate may no longer be applicable as the agency no longer has the same volume as originally agreed.

 

[Lil Skater]

Sadly no. Not that I'd mind paying a bit extra to get quality service. Sadly, it doesn't happen. Paying more makes no difference - they don't give a damn.

Of course we HAVE to deal with agents, there's no choice. But that does not mean we should trust em - they are entirely unreliable.

I must disagree, in the industry myself i see good and bad and with my parents fairly in depth investors since i was very young - i've grown up on one side of the fence and have moved to the other, but still have torn views.

I hate that people give stereotypes to many agents, i think the best way to find an agent is word of mouth.

Unfortunately there are bad agents which gives the rest of us a bad name too, i hope that one day you will find one who is good for you and perhaps not have the same view as you do now.

Meconium - perhaps when i move into Property Management (not as an assistant but an actual property manager) if you have a property or two where i am, i could offer you a deal to show you not all agents "Don't give a damn" and some can be extremely reliable.

 

[Lamingtons]

Lil skater - I would so let you rep my property! Good PMs are worth their weight in gold.

 

[Lil Skater]

Lil skater - I would so let you rep my property! Good PMs are worth their weight in gold.

Lol, thank you

I hope that when i've got enough experience under my belt to start braking down the common views people have on agents.

 

[skater]

Lol, thank you

I hope that when i've got enough experience under my belt to start braking down the common views people have on agents.

Of course, not all agents are bad (I've found a few really good ones), but the real problem is that there really are a LOT that don't really care. Whether they are in sales or management the same is true. Sometimes it is like trying to find a needle in a haystack.

I have also found that you may get areas where the quality is similar, no matter where you go. This is really not good in some regionals where you are limited in choice as to which agent to use. I have sold a few properties due to this in more than one State. The reverse is true too, as I have also had an Agent call me out of the blue with a deal that was not listed. He even admitted to me that he just wanted a quick sale and did not want the bother of having too many people looking at it. I bought for the prescribed price, which was around half the market value at the time. Vendor knew no better as they were out of area. Admittedly a very low end property, so the vendor was not missing out on hundreds of thousands of $$, but they could easily have gotten much more (and still a quick sale) by a proper listing.

 

[Monopoly]

I may be mistaken, but, I think the OP was referring to a scenario where the lower fee was agreed on the basis on multiple landlords signing on at once. So, if one of those investors was to leave the agency, the discounted rate may no longer be applicable as the agency no longer has the same volume as originally agreed.

A commercial property, is that what was being referred to??

Stop Press: Just replied to your PM James, and yes, now I see where and how the scenario described in that post was going ie. based on the thread's suggestion for a communial or collective property management strategy!!

Thank you for clearing that up for me James; and apologies Skeetaboat (for misunderstanding you)....I am so busy these days I need to stop trying to cut corners instead of not reading the whole thread in its entirity!! My bad!!.

 

[Skeetaboat]

I may be mistaken, but, I think the OP was referring to a scenario where the lower fee was agreed on the basis on multiple landlords signing on at once. So, if one of those investors was to leave the agency, the discounted rate may no longer be applicable as the agency no longer has the same volume as originally agreed.

Correct James! I was not very clear in my meaning but yes, that is a very good summary of the conversation.

Monopoly- no worries.

 

[Skeetaboat]

A commercial property, is that what was being referred to??

no just residential ones.