How much is the standard rate for managing investment property ?

People,

I'd like to know how much is the standard normal cost in average for managing a rental property (my IP) in NSW ?
 
Dave would be right in general but the fee also depends on how many properties you have with the same agent and where the property is.

Sometimes you can pay less and sometimes more,
and could be a lot more if the agent doesn't want to deal with a particular suburb or street
 
Ours range from 5.5% to 7.7%.

Personally I am more concerned what I get from the PM rather than how much and will pay a higher managing fee if the agent does what I want from them.
 
We are charged 6.6% including GST for Sydney property. We don't pay for any inspection fees or yearly statement fee. They also charge postage & petties $2.75 inc GST per month. And same as DaveM is the letting fee - one week's rent plus GST. We also change the termination days from 90 days to 30 days.
 
9.9% plus 2 weeks for a new tenant, 1 week for a new lease with an existing tenant and then postage, inspections and statements on top of that here.
 
Im yet to buy an IP and am also wondering what the costs are.

When people quote "5-6%" etc does this mean a percentage of the rent paid per week? ie 5% of the $300 p/w rent so the agent gets $15 per week for their trouble?

Cheers, Mick
 
I pay 6.6% - 7.7% in ACT, SA and NSW (GST inc) - 1 week letting fee - no admin fees, no statement fees and no condition report/inspection fees + 50% re-letting fee. Pretty happy with my agents for the past few years and what is included. Termination is standard 30 days - no termination fees.
 
People,

I'd like to know how much is the standard normal cost in average for managing a rental property (my IP) in NSW ?

You just sign over the rent you receive to the PM...so 100%.

This includes organising to have the batteries changed in the smoke alarm.
Also includes suggesting to the tenant they will receive a discount because they are being inconvenienced for "something"...and any wrong advice they give you, or any forms they incorrectly fill out..you will be responsible for.
 
Im yet to buy an IP and am also wondering what the costs are.
When people quote "5-6%" etc does this mean a percentage of the rent paid per week? ie 5% of the $300 p/w rent so the agent gets $15 per week for their trouble?
Cheers, Mick

Hm, is that true ? I've never deal with RE agent before. I'd better ask them for more info then.

I pay 6.6% - 7.7% in ACT, SA and NSW (GST inc) - 1 week letting fee - no admin fees, no statement fees and no condition report/inspection fees + 50% re-letting fee. Pretty happy with my agents for the past few years and what is included. Termination is standard 30 days - no termination fees.

That does sounds make sense, so the income that we received is already reported to the ATO or do we have to decalre it again in the TaxPack ?

You just sign over the rent you receive to the PM...so 100%.

This includes organising to have the batteries changed in the smoke alarm.
Also includes suggesting to the tenant they will receive a discount because they are being inconvenienced for "something"...and any wrong advice they give you, or any forms they incorrectly fill out..you will be responsible for
.


Ever since I rent myself I've never know such thing as discount from the LL :-o ?
even I have to jack up the rent price +$10 per week just so I can secure the place to rent for one year.
 
my friend in Epping NSW got 5% while me in Wollongong NSW regional area got around 6 - 7%
For me its Nowra 8%+GST and my mate is Dapto 7%+GST both 400pw so its $32vs$28pw commission which is $4pw or $208pa so even less after tax rebate so in the big scheme of things the difference is not really worth the stress to save 1 or 2%. I find its better to find a PM you get along with and works hard for you not the tenant and charges only the 1 week for new lease and a set fee ($50) for a re-lease. Also a PM willing to have a 14 day termination clause. All other things seem to be about stanard between all PMs I checked.
 
When people quote "5-6%" etc does this mean a percentage of the rent paid per week?

....not in Perth it doesn't.

In Perth when they quote 5-6%, what they mean is that is the percentage of your total wealth you must pay to the PM every week. The service levels are pretty woeful so it balances out I suppose.
 
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