I have an IP in Worrigee so have some exposure to the REA/PM operating in Nowra. As for the going rate, 8.8% (GST inclusive) is about the norm with your offer of 7.7% probably being the best rate you may find unless you have multiple properties.
Been with my PM since 2010 but currently having an issue in that they seem to have become one the biggest in Nowra since I signed up but with this has come a decrease in their level of service to me as a LL so just trying to work out if its either a slack PM or REA gives his PMs too many properties to manage to do them effectively. Easy to work out who they are as you just need to look at the "For Lease" listings on RE.com.au.
Would be interested in what PM gave you the line about rents being lower as from my understanding their overheads are also lower as regional wages and business expenses are much less than in Sydney. My guess would be its my REA/PM as it sound like something they would say to an Owner.
If its your first time into IPs then I would definitely use a PM and in Nowra depending on where you have purchased the use of a PM is mandatory to be able to remain sain and not having to turn to ACA or TT.
Also when you get down to working out who to use make sure in the MAA that you reduce the $$$$$ limit authority that you allow for repairs without contacting you for approval (mines is $400 but was $1000) and also reduce the termination days to "14 day written notification without prejudice" (I think it was 90 days) as they need to know if your not happy your going fast.
I you want to know any details let me know.
