Management Fees Brisbane

[golli]

Hi All. New to the forum and new to being a LL.
Would just like to get some feedback from you all on what are reasonable property management fee's in Brisbane.I have an Agent in mind who I would quite like to deal with however I want to make sure that there is nothing unusual about their fee schedule.

The schedule of costs provided to me includes:

Regular fees:

Management and rent collection = 6% of each weeks rent +gst
Postage and Petties - $5 per month +gst
Water Invoicing and collection fee = 5.5% of money received for water
Letting fee = first weeks rent + gst (no charge for lease renewals)

Irregular fees:

Insurance claims = $88 per claim
Attendance at tribunal = $55 hour + parking

Services includes = 3 annual inspections, monthly rent payment to LL



Are these extra cost (e.g water invoicing) typical costs that you all pay or do some agents factor these costs into their management fee percentage?

Thanks all.

 

[Tash_85]

ive been quoted about 8% for beenleigh area. And ive checked with a few agents... all the same. Some less, but services atrocious. What area are u in?

Also, the cheapest management fee does not mean quality service.

I made a VERY expensive mistake recently... about 6 months ago i sold a house with an agent who i thought had my best interest at heart... thought they would help me out and market my property well. unfortunately they offered me a cheaper commission rate because the sharks just gave me 3 offers and told me to pick the highest.. big big mistake.. market has gone up so much now if only i held out a big longer but also they make u think your getting a discount when in fact they dont give a damn except selling your place so they get their cut.

massive fail on my behalf, but be careful, i lost alot of money and also if u dont get a good agent your place could get trashed... ive copped it out, but also learnt alot.

Now i suss out as many agents as possible, and look into their company and ethics a bit more.

This relates to anything, selling or leasing out a place.. dont fall for their tricks just because you think their fees are cheaper, generally their service is appalling.

You get what you pay for in this instance

Hope this helps somewhat

 

[fisherman]

Owners need to revolt against diversification of fees and charges. They are being nickeled and dimed to death.

While a low management fee could mean unsatisfactory management, high fees are no guarantee of better management either.

Caveat emptor, let the buyer beware.

 

[Nattl3s]

Hi everyone
Great forum, been lurking for about 5 months but finally decided to contribute. Wish i joined about 9 years ago. Alas.

My management fees for Brisbane northside are at 8% incl gst plus 1 week letting fee + a few extra sundries. They wanted 8.5%.
The other 3 REA PM's I spoke to in the local area were all the same at 8.5%.

Im amazed how much more expensive it is compared to down south.

Cheers, nat

 

[Peterw]

Nattl3s, some time ago, I had a Sydney LL complains about our 8%. She said she paid 5% in Sydney. When I inquired further, her Brisbane rentals were about $150 per week, compared with $500 plus in Sydney. I just mentioned, if you do the math, we are cheaper. Not sure what the comparison is now.

Fisherman, I understand you thoughts, however from my perspective, things have changed enormously over some 30 years. We have a higher percentage of interstate landlords now, so our local ones are more hands on with issues, from maintenance etc. Additionally, we have smokies, safety switches to have regularly tested, water charges to recoup, body corp by laws to monitor, not to mention the greatest anti LL organisation ever created, the State Tribunals, and the workload to ensure files are squeaky clean and ready for presentation if ever needed, so to look at offering different fees depending on the structure/relationship with each LL does start to make sense.

At the end of the day, it is the PM's job however to explain the cost/benefit structure, and if the LL does not believe they are getting value, then the PM has dropped the ball. Just my 2 cents

 

[Michael_X]

I just signed up an agent in Brisbane - Logan area. The rate is 8.3%.

Settled on Monday. It was on the internet Tuesday morning and has already had two open homes. She organised the cleaning and repair all within one day of getting the keys - at very good rates.

Sure it's more than what I pay in Sydney but it's more than worth it! If I got this level of service from all my property managers, would be happy to give them 8.3%

 

[Nattl3s]

Nattl3s, some time ago, I had a Sydney LL complains about our 8%. She said she paid 5% in Sydney. When I inquired further, her Brisbane rentals were about $150 per week, compared with $500 plus in Sydney. I just mentioned, if you do the math, we are cheaper. Not sure what the comparison is now.

Hi Peter
(Hope the quote came out correctly)
Yes of course, cant believe i missed that. Makes me feel better now
Just going through all the forum posts building up my knowledge and saw that percentages in the southern states were lower - but i didn't do the math.
Cheers, nat

 

[fisherman]

Nattl3s, some time ago, I had a Sydney LL complains about our 8%. She said she paid 5% in Sydney. When I inquired further, her Brisbane rentals were about $150 per week, compared with $500 plus in Sydney. I just mentioned, if you do the math, we are cheaper. Not sure what the comparison is now.

Fisherman, I understand you thoughts, however from my perspective, things have changed enormously over some 30 years. We have a higher percentage of interstate landlords now, so our local ones are more hands on with issues, from maintenance etc. Additionally, we have smokies, safety switches to have regularly tested, water charges to recoup, body corp by laws to monitor, not to mention the greatest anti LL organisation ever created, the State Tribunals, and the workload to ensure files are squeaky clean and ready for presentation if ever needed, so to look at offering different fees depending on the structure/relationship with each LL does start to make sense.

At the end of the day, it is the PM's job however to explain the cost/benefit structure, and if the LL does not believe they are getting value, then the PM has dropped the ball. Just my 2 cents

Today we received a REA letter recommending 'safety inspections' @$249 a pop. God knows how long such an inspection would be current for and what small print the entrepreneur's lawyers have written into it. The REA says that its PM is not competent to do inspections. Can't take photos for rental advertisements either. Calls trades for everything else.

While I have respect for the sage and earnest PMs who post here, an owner could be excused for wondering what s/he is paying for. Or more to the point, whether any returns are worth the risks. Do REAs represent owners and make strong objections to the minister when the regulators make the system so complex and expensive? Tenants too must realise that there are others who are making their rents more expensive.

 

[Peterw]

Fisherman, there was a child killed, when a deck I think it was gave way. The coroner recommended, amongst other things, that properties get an annual inspection. We are fearing that the state government may legislate that. Now it is true, that a PM does not have the skills to "do a building inspection" however they can see if some thing is suss, and need further attention, and can then have some one look at it. We do have all our tradies be our eyes as well. So if a sparkie does a visit, he will let us know if he sees say a step tread concerning.

Yes the world is moving more and more that way, with more and more under the duty of care umbrella.

The State institutes do but in strong recommendations when these ideas are raised, and some times their submissions are accepted.

I do understand you concerns about the rising costs and shrinking returns. Lets hope that we get to enjoy some capital gains at some stage to make up for it.