Management Fees - Perth, WA

mysrh

mysrh

Hi guys

Bought a house in Mt Pleasant, Perth lately, was planning to live in it but will lease it for at least a year.

Never bought a property in Perth before hence I don't really know if the management fees I was given is normal for Perth standard

I got below fees from the real estate agent who sold the property, I found them really professional and gave quality, but I'm unsure if I can get same good quality property manager with lower price.

Please look at the fees below, can you recommend/suggest any other property manager you are very happy with. Thank you massively!


Property Management Schedule of Fees

Monthly management fees
Properties over $350pw rent 9.35%
Properties under $350pw rent 9.9%
(Furnished or partly furnished ? add 3.3%)
Administration fee $11.00
Service Fees
Lease to new tenant 2.2 weeks rent
Lease renewal of existing tenant 1/2 weeks rent
Property condition report (one off fee) up to 3 bedrooms $165
Property condition report (one off fee) 4+ bedrooms or double storey $187
Final Bond Inspection (upon tenant vacating) $165
Routine Inspection (quarterly) $ 77
Nation Tenancy Database search for applicants $13.30
Title Search (unless copy supplied by Owner) $17.60
Strata Plan search where required (unless copy supplied by Owner) $17.60
Annual Financial Summary Report Statement fee $66.00
Professional Photography $99
Advertising to 8 key real estate internet sites $125
?To Let? sign (including installation & removal) $ 77.00
Miscellaneous Fees
Representation at court/strata meetings $110 per hour
Project management, major renovations, etc $ 99 per hour
Insurance claims (per claim lodged) $110.00
 
holy crap! That's expensive.

I have rough figures in my head but here goes next to yours

Monthly management fees
Properties over $350pw rent 9.35% 8.5%
Properties under $350pw rent 9.9% 8.5%
(Furnished or partly furnished ? add 3.3%)
Administration fee $11.00 No idea what this is for
Service Fees
Lease to new tenant 2.2 weeks rent 1 weeks rent
Lease renewal of existing tenant 1/2 weeks rent Terrible! $160 I think
Property condition report (one off fee) up to 3 bedrooms $165 $160
Property condition report (one off fee) 4+ bedrooms or double storey $187 $160
Final Bond Inspection (upon tenant vacating) $165 $160
Routine Inspection (quarterly) $ 77 about the same
Nation Tenancy Database search for applicants $13.30 ditto
Title Search (unless copy supplied by Owner) $17.60 ditto
Strata Plan search where required (unless copy supplied by Owner) $17.60 ditto
Annual Financial Summary Report Statement fee $66.00 FREE
Professional Photography $99 Not Offered but I'd want really good ones for $99 not some hack iphone blurrries
Advertising to 8 key real estate internet sites $125 Not Sure
?To Let? sign (including installation & removal) $ 77.00 Not Offered
Miscellaneous Fees
Representation at court/strata meetings $110 per hour ditto
Project management, major renovations, etc $ 99 per hour not offered
Insurance claims (per claim lodged) $110.00 FREE
 
Boss realestate and some others do an all inclusive %. I find it better as the fees add up ridiculously in Perth.

Suggest that you talk to Anna or Wayde from Boss RE and make up your own mind.
 
sounds standard, management fee 8.5% plus GST
you should be able to negotiate the letting fee down to one weeks rent plus GST at least for the first lease
 
Thanks for all the input. It's good to know that it was the prices which is higher and not just me expecting something else because my other properties don't attract so many fees like this one.

Will see what BOSS RE is like.

Anyone else in Perth has suggestions on other PM? It's in South of the river.
 
No wonder keeping the cash in bank is a better option :D

I manage ours. Now I know how much all that trouble is worth.
 
mysrh said:
Property Management Schedule of Fees

Monthly management fees
Properties over $350pw rent 9.35%
Properties under $350pw rent 9.9%
(Furnished or partly furnished ? add 3.3%)
Administration fee $11.00
Service Fees
Lease to new tenant 2.2 weeks rent
Lease renewal of existing tenant 1/2 weeks rent
Property condition report (one off fee) up to 3 bedrooms $165
Property condition report (one off fee) 4+ bedrooms or double storey $187
Final Bond Inspection (upon tenant vacating) $165
Routine Inspection (quarterly) $ 77
Nation Tenancy Database search for applicants $13.30
Title Search (unless copy supplied by Owner) $17.60
Strata Plan search where required (unless copy supplied by Owner) $17.60
Annual Financial Summary Report Statement fee $66.00
Professional Photography $99
Advertising to 8 key real estate internet sites $125
?To Let? sign (including installation & removal) $ 77.00
Miscellaneous Fees
Representation at court/strata meetings $110 per hour
Project management, major renovations, etc $ 99 per hour
Insurance claims (per claim lodged) $110.00
Click to expand...

Why do they have all these fees on top of a management fee? Such a high management fee should cover all these things. I would never buy an IP in Perth with such ridiculous fees. Add them up and you'll find they take around 18-20% of your rent.
 
Jamie M said:
lol - you would be outraged by the prices in Canberra!

Property managers are working a bit harder for their money these days though.

Cheers

Jamie
Click to expand...

Theyre more than the above quotes in canberra ?
What are they doing more of these days?
 
D.T. said:
Theyre more than the above quotes in canberra ?
What are they doing more of these days?
Click to expand...

PM fees hover around the 9% to 10% mark.

The vacancy rate has gone up. In previous years, it was so low that tenants would be competing hard for properties so filling them was easy.

Cheers

Jamie
 
That is a very high management fees for Perth!!!
Half of those fees is not heard of in Sydney, let alone you can negotiate to around 5.5-7.7% management fees.
 
May I just put it out there, they are charging a fee for service. It the tenant stays for a long time your charges are lower. If there is regular turnover of tenant, the PM's workload is higher, so is their fee. Just my thoughts?
 
Peterw said:
May I just put it out there, they are charging a fee for service. It the tenant stays for a long time your charges are lower. If there is regular turnover of tenant, the PM's workload is higher, so is their fee. Just my thoughts?
Click to expand...

Yeah except its still ridiculously expensive for what they do.
 
Yeah, I have 3 properties at eastern states, and they're at 8% and one in Sydney CBD is 10%.

This property is supposed to be our first house, but my mum still wants us to live with her, that's why rather than having it vacant and wasting money, we'll rent it out even if it won't cover the expenses, but the rent will still help with the mortgage.

I'll try BOSS PM see what they're offering, meanwhile I'm still open for suggestions.
 
mysrh said:
Bought a house in Mt Pleasant, Perth lately, was planning to live in it but will lease it for at least a year.
Click to expand...

I guess you already have a PPOR, because if you are planning for this property to be your long term PPOR and you lease it before living in it then CGT will be calculated on a prorata basis using the time spent in it rather than being CGT exempt from the start of ownership.

And yes, PM fees in WA are expensive, but then so is everything in WA.
 
Holy Crap!!!

I need to put my scale of fees up...way up.


Monthly management fees
Properties over $350pw rent 9.35%
Properties under $350pw rent 9.9%
SLIDING SCALE FROM 3% to 7%
(Furnished or partly furnished ?NIL)
Administration fee NIL
Service Fees
Lease to new tenant 11% gross average annual rent
Lease renewal of existing tenant NIL
Property condition report (one off fee) up to 3 bedrooms NIL
Property condition report (one off fee) 4+ bedrooms or double storey NIL
Final Bond Inspection (upon tenant vacating) NIL
Routine Inspection (quarterly) NIL
Nation Tenancy Database search for applicants NIL
Title Search (unless copy supplied by Owner) NIL
Strata Plan search where required (unless copy supplied by Owner) NIL
Annual Financial Summary Report Statement fee NIL
Professional Photography NIL FOR IN HOUSE BUT AT COST FOR PROFESSIONAL ~$220
Advertising to 8 key real estate internet sites NIL
?To Let? sign (including installation & removal) AT COST ~$250
Miscellaneous Fees
Representation at court/strata meetings NIL
Project management, major renovations, etc NIL
Insurance claims (per claim lodged) NIL
 
I'm originally from Melbourne and was shocked at the fee gouging by real estate agents in the wild west. I used to pay these excessive property management fees until I came across this company below a couple years ago. They do the whole property management tasks, including letting fees (that alone saves me about $1100 per tenancy) and inspections for 10%. I have been very happy with their service too.

They have offices in Perth, Cockburn and Rockingham.

http://residential.defreitasryan.com.au/-Search-For-a-Property-To-Rent-.html
 
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