Management Schedule

[NBS]

About to sign a Property Management Schedule now I have looked at 3 real estate agents in my area and all are basically the same just very minor differenes.

It seems 8.25% management fee inclusive of GST is standard unless you can negotiate less Will give it 12 mths and see if its worth the monies.

My question is in the "rent payment" it says the rent is paid into my account monthly I'm more inclined to have it paid weekly. My reason its there to reduce my interest not make them money by using my money (so to speak). Of course interest saved is bugger all (have not worked out) to be honest and proberly not worth worrying about. Of course the other thing is at least I can see the rent is being paid and not find out 4 week down the track there is an issue.

What are others doing ?

Will say the agent did say try to rent at 360 per week I was only looking at 320 and had had a few hits and agent has said application will be in Monday. A yeild of 7.2 not great but ok.

So happy about that.

Brian

 

[Jody in Darwin]

Hi Brian,

Not sure about agents over there but I do know that the standard over here is end of month payments - with at least 1 agent doing a midmonth and end of month payment.

You're right about the interest thing - not that much is saved (I've worked it out too). You also make a good point about being able to keep tabs on rent payment. Unless you can find someone who will do a mid-month payment too (I doubt you will find someone who will pay weekly) then it is down to doing your research on the property manager's track record for being on top of their arrears list.

Kind regards,
Jody

 

[russellpeter]

The property exchange qld pay owners weekly. management fees of 5% including GST + first weeks rent to find a tenant no other fees or chargers
brand new agency good service give them a call 0406 743 965

 

[NBS]

Ahh bugger should have asked this topic earlier. Oh well will stay with this agent for at least 6mth as that looks like what the term of the lease will be. This will suit me and give me a chance to see how the agent works and if issues will look at another PM. I will mention the 5% inclusive of GST later to the agent. Thanks russellpeter.

Will keep that number for later in fact will contact them and get papers sent out so I can read it and be more informed.

Will just stay with the monthly thing for the time being.

Brian

 

[jezza]

NBS

You have to align to what the tenant pays for it to be weekly. Generally for example Tenant pays on 3rd, agency flufs around sometimes for day or 2, they minus all fees and sundries and you get paid on 5th. Tenant also has period of leeway of when to pay, although they may be required to pay on the 3rd in some states they get up to 14 days before they get " The letter". Also the management fee is based on them doing the finances once a month ( 12 times a year ) . If for you they did this 52 tiomes a year it is 4.3 x the amount of work and your management fee would reflect this. Interest amount saved is minimal, but if your cause for concern which by the sounds of it is you don't want to wait 4 weeks, then the additional 14 days and then whatever time it takes to go through the next process where it could be another month or 2. Then you eliminate this stress by getting insurance to cover tenants doing a runner.

Jezza

 

[NBS]

Hi Jezza,

The 4 weeks is not an issue for me, I guess my query came from something I believe I read on here some time back on a similar subject. I, for some reason thought LL were paid weekly and when mine came out it indicated monthly i figured I'd ask. I know the interest is bugger all in the overall picture.

Anyway happy with the responses and will just move on.

Brian

 

[liverpoolharryk]

We pay on the 15th and the 30th, find that most tenants pay fortnightly and the weekly payments is a little hard for owners to keep track of. We charge 6.5% + Gst, if you shop around there are good agents out there that don't cost the earth.

 

[chrispy]

Brian

My Queensland rents are paid into my account on the 28th of the month.

My Victorian rents are paid a day after the agent receives them.

All are monthly.

Both suit me. It allows me to plan.

I trust the agent to follow through if the rents are behind.

Chris

 

[BuildingBlocks]

I wouldn't want to be trying to keep track of weekly payments.

1 payment and 1 statement a month is enough for me. As the mortgage repayments also come out once a month it keeps things nice and easy to follow

I don't want to know if a tenant is a week late paying the rent, as long as by the end of the month everything is squared up when the agent sends me my cut, it saves me a lot of extra stress, that is why I pay PM's!

 

[NBS]

Thanks for all the replys I will stick with the monthly payment can now see reason why its monthly. As for less in management fees its seems majority charge the same where I am so will just have to see how it goes.

If I am not happy with my agent I have a 30 days clause in engagement agreement and will change if required.

At this stage the agent has been very proactive will see how this is after the engagement is signed and tennant is in.

Brian