Excessive PM Fees?

Hi all,

Going through my PM Schedule and it seems a little excessive. This is my 1st interstate IP. It is on the Gold Coast.
Letting commision 1 weeks rent.
Rent colection commision %5.5
Management fee %3.3
Lease negotiation/Renewall fee 1/2 weeks rent.
end of fin year stat $8.50
mediation/tribunal hearing fee $55 per hour
end of lease touch up $66
Advertising $5 per month
newpaper at cost
smoke alarm insp/bat $5.50 per alarm + costs
Reading water meter-end of leae $3.50
invoicing collection water costs $3.50
Admin expenses $7 per month.

It seems there is alot of unnecessary expenses included here.
Any thoughts?
 
Seems to me that they are doubling up quite a bit. Have you already signed the Agency Agreement? If so, they should have disclosed this to you before signing up and I would suggest shopping around a bit more although your decision shouldn't be based solely on price. In ACT/NSW I pay 5% management fee (did a deal for multiple properties), 1 week letting fee, 50% re-letting fee, advertising at cost and $60 p/h for Tribunal hearings (no admin fees, no condition report fees and no postage). What is the end of lease touch up? Why are they charging an eofy statement fee, most PMs have software that does these automatically - there is no more work involved. Reading water meter at end of lease - isn't this their job?? And, i've never understood the admin fees, especially since most communication is email nowdays.
 
No, I haven't signed up yet, I just received the letter to sign today stating all the expenses.
I will be making calls tomorrow to get a more favourable deal.
The 'End of lease touch up" sounds like a bit of a rort to me as well as charging $5.50 per smoke alarm for pressing a button to see if it responds.
As for reading numbers from a water meter and charging for it while on a regular inspection is a little rich in my books.
 
This is why I have said to some owners the simple fee structure I have is easy management fee to include lease renewals, routine inspections, online statements, end of year statements, standard internet advertising....

to save on all this kind of confusion.
 
Good news

All the following are waived.

end of fin year stat $8.50
end of lease touch up $66
Advertising $5 per month
newpaper at cost
smoke alarm insp/bat $5.50 per alarm + costs
Reading water meter-end of leae $3.50
invoicing collection water costs $3.50
as well as %7.7 comission.

It certainly does pay to make enquiries.
 
Seems a few agencies are trying to introduce additional fees for every part of the service performed. As more and more manage to foist them onto unknowing investors the practice spreads.
I realise being a PM is a tough job, but I doubt that these extra fees are going to compensate good PM's doing jobs they already do.
I'd like to see these agencies rejected outright unless you know for sure that they provide superior service.
 
I pay 7% PM fee + gst for multiple properties with the same agent.
+ letting fee of one week i think.

AND ITS WORTH EVERY PENNY.

I'm in this whole game for the dollars, not the pennies.
 
Seems a few agencies are trying to introduce additional fees for every part of the service performed. As more and more manage to foist them onto unknowing investors the practice spreads.
I realise being a PM is a tough job, but I doubt that these extra fees are going to compensate good PM's doing jobs they already do.
I'd like to see these agencies rejected outright unless you know for sure that they provide superior service.

I heard one of the agencies up here have a lower management fee then charge routine inspections and this is given to the property mangers who actually do the routine inspections....I think it's on their website too.
 
Good news

All the following are waived.

end of fin year stat $8.50
end of lease touch up $66
Advertising $5 per month
newpaper at cost
smoke alarm insp/bat $5.50 per alarm + costs
Reading water meter-end of leae $3.50
invoicing collection water costs $3.50
as well as %7.7 comission.

It certainly does pay to make enquiries.

:) maybe was just the way I was reading it this early in the morning - so you got 7.7% commission taken off as well ;)
 
Perth PM fees :
10 %
leasing fee $924
sundries $3.02 week
Tenant check $20
Data base check $120
Inspection $66
 
This is precisely the reason I decided to get my RE licence and start my own property management business. Some PM's charge on average about 9% to manage your property and then charge you all the little extras on top for admin, checking the water meter, checking the smoke alarm.

What the heck is the 9% for.................

cheers

Shane Scott
Scratch Property
www.scratch.net.au
 
This is precisely the reason I decided to get my RE licence and start my own property management business. Some PM's charge on average about 9% to manage your property and then charge you all the little extras on top for admin, checking the water meter, checking the smoke alarm.

What the heck is the 9% for.................

cheers

Shane Scott
Scratch Property
www.scratch.net.au

You haven't been to canberra by any chance have you? ;) Because that is the standard deal here. :rolleyes:
 
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