How much do you pay for property management in PERTH?

[shuggy]

This is what my PM charges in Darwin

Management Fee: 10% + GST

Fee: $8.00 per month + GST

Hourly rate attendance charge Body Corporate Meetings: $75.00 per hour + GST

Tribunal Hearing attendance $75.00 per hour + GST

Advertising: Charged directly to owner for payment
* Saturday NT News $38.00 per advert + GST
* Internet $40.00 per upload + GST includes feature

property on realestate.com
raywhite.com.au
realestate.com.au
rentfind.com.au
Inventory Charges: Negotiable
Condition Report: No Charge
Inspection Fee: No Charge
Renewal Fee: No Charge
Annual Statement: No Charge

Might have to think twice about investing in WA

It sounds like you guys are getting royally ripped off in Perth and Darwin.
Thanks for the heads up to avoid these areas, not for me Ronnie.

 

[redwing]

It sounds like you guys are getting royally ripped off in Perth and Darwin.
Thanks for the heads up to avoid these areas, not for me Ronnie.

Darwin looks cheap compared to some WA Property Managers

 

[221B Baker St]

So a bit of a bump of an old thread. Interesting reading nonetheless. I wonder if anything has changed in the 2 or so years since?

I am searching for a property agent for my Dad and it doesn't seem to have changed that much , but so far have only had a chance to get quotes from 3 companies (and not negotiate with any of them).

I wonder whether the property market being in a slump might have changed things. The hope, of course, being that a reduction in income from sales might have increased competition for property management income (on the flipside it might have caused increased phantom charges too).

Anyone have anything new to add about property managers in Perth? Have rates come down at all?

NB - Been reading a few threads on here for a while, need to start posting and participating more as I get more involved in the property field. At the moment, my experience is sadly quite limited.

 

[MTR]

So a bit of a bump of an old thread. Interesting reading nonetheless. I wonder if anything has changed in the 2 or so years since?

I am searching for a property agent for my Dad and it doesn't seem to have changed that much , but so far have only had a chance to get quotes from 3 companies (and not negotiate with any of them).

I wonder whether the property market being in a slump might have changed things. The hope, of course, being that a reduction in income from sales might have increased competition for property management income (on the flipside it might have caused increased phantom charges too).

Anyone have anything new to add about property managers in Perth? Have rates come down at all?

NB - Been reading a few threads on here for a while, need to start posting and participating more as I get more involved in the property field. At the moment, my experience is sadly quite limited.

What I am seeing is quite the opposite, RE agents can not get enough rentals as there is such a demand therefore they are very happy to negotiate for your business.

Also, Perth property is not in a slump, certainly not the sub $500K, far from it, stocks are so low we are now seeing pockets of the Perth market actually rising.

Perhaps the writing is on the wall, which means it wont be long before RE agents start ignoring me unless of course I have a property to sell.

Cheers MTR

 

[westminster]

So a bit of a bump of an old thread. Interesting reading nonetheless. I wonder if anything has changed in the 2 or so years since?

I am searching for a property agent for my Dad and it doesn't seem to have changed that much , but so far have only had a chance to get quotes from 3 companies (and not negotiate with any of them).

I wonder whether the property market being in a slump might have changed things. The hope, of course, being that a reduction in income from sales might have increased competition for property management income (on the flipside it might have caused increased phantom charges too).

Anyone have anything new to add about property managers in Perth? Have rates come down at all?

NB - Been reading a few threads on here for a while, need to start posting and participating more as I get more involved in the property field. At the moment, my experience is sadly quite limited.

PM rates are a bit more competitive now due to the very very tight rental market - they know that they have to do minimal work to get a tenant . Sure they mostly all start at 8.5% but if you ask for a discount it's usually given.

Most agencies now offer 3 tiers of PM pricing. The 8.5% bracket + all the extras, a middle ground at 11% which includes more things and an all inclusive which is around 16%.

Do the sums - the middle one and even the end one with a discount can work out less than the base one.

 

[Chomp]

I added mine all up on an excel spread sheet, worked out around 20% or rental income. I did for a year on one property but taking it back after this month.

Its not worth it in my opinion, if I get enough properties and then it is too hard for me to handle, I should be able to retire and look after them full time anyway !

 

[221B Baker St]

Thanks for the replies guys. Been a hectic past few days moving things back and forth. Major stuff done anyway..

Ended up letting it out privately (or have agreed to anyway). Tenants being recommended by a close family member. Good in terms of saving on PM fees and that we have a referral but I am aware of horror stories from letting out properties to people 'because you know them'.

With that in mind I'm going to start on the research to draw up all the documents (lease agreements, condition reports and whatever else I need) to make sure everything is done by the book and in writing. If I am unable to cope with the management (i.e.- if they prove to be difficult tenants), I can always get a property manager then.

 

[221B Baker St]

I added mine all up on an excel spread sheet, worked out around 20% or rental income. I did for a year on one property but taking it back after this month.

Its not worth it in my opinion, if I get enough properties and then it is too hard for me to handle, I should be able to retire and look after them full time anyway !

Spot on! If the estimates of 18% or thereabouts are accurate, managing 5 properties would essentially provide an income of having another property in your portfolio.

 

[DavidCrash]

2014 prices

I know this is an old post, but I thought it might be worth refreshing with current prices in Perth.

With the rental market slowing down and rent seeing slight corrections throughout Perth and surrounding suburbs, reducing management costs is one way to help take the sting out of the this short-term slow market.

These are the fees I charge my clients, plus gst.

Management Fee 7.5%
Postage & Petties $7 per month
Routine Inspections $50
Advertising $90
Leasing Fee 1 weeks rent
Property Condition Report $80
Final Inspection Fee $70

Some agencies will also charge 50% of a leasing fee on a lease renewal (I don?t).

Based on these fees, on a 12 month tenancy with an entry property condition report and final inspection on a $500 per week tenancy, total cost over 12 months would be $2,974.

This is (2974/26000 =) 11.5% on total income.

16-18% was ok when average rents were 200 ? 300 per week, but we haven?t seen rents like that for over a decade unless you are looking at a 1 bedroom apartment or very far out of Perth.

 

[sasquach]

I've negotiated a flat 10% all inclusive fee with a couple of property managers, and I've seen others advertise a similar fee structure.

I'd be interested to see if anyone has been able to negotiate a better deal (8-9% all inclusive?)

 

[Rixter]

Just remember that price shopping on PM fees & service are 2 completely different things.

Its service value for money spent that matters most - not the lowest price found price shopping.

Like anything, you get what you pay for.

Food for thought.

 

[Chooke]

Just remember that price shopping on PM fees & service are 2 completely different things.

Its service value for money spent that matters most - not the lowest price found price shopping.

Like anything, you get what you pay for.

Food for thought.

Not so in my 20 years or so experience. I found absolutely no correlation between PM fees and quality of service, at least here in Perth. Some of my worst experiences have been with those that charge at the higher end. The PM I'm currently with charges 10% fully inclusive and the service is fine.

 

[redwing]

I've negotiated a flat 10% all inclusive fee with a couple of property managers, and I've seen others advertise a similar fee structure.

I'd be interested to see if anyone has been able to negotiate a better deal (8-9% all inclusive?)

Yes..much less, but I've other stuff going on with the agency

 

[Morbius]

Hmm. I didn't realise I was on such a good wicket with my PM in Qld.

Commission: 6.5%+GST (on gross rent only. not counted on the first week that is kept as letting fee.)
New Lease: 1 week's rent +GST
Lease renewal: $20+GST
Advertising: whatever we decide is required. Usually $50+GST
Postage and petties: $5+GST/month across all properties.
Inspections: Included.
Tenant vetting: Included.
Renovations management: Included up to reasonable amount.

Last financial year across 7 properties it came to 8.2% of gross rent.
I am very happy with the service I get. I regard my PM as a trusted advisor and a partner in the business. I do live in fear that she will get poached, although I have been at least reasonably happy with all but one of the 5 or so PMs I have had with this firm. I buy her and her husband a swanky dinner occasionally. I think I will start to do it more often.