Our settlement date in the new property is about a month away. There is a tenant currently living there. We would like to keep the tenant there for at least half a year. The real estate is currently charging 5% commission + GST on rent. Is the commission usually negotiable? How low can I go? I am thinking of 3.5% to 4%. The property is in NSW.
Negotiating commission rate with the real estate
- Thread starter aitsmoi
- Start date
(inc GST)
8.8% is the boutique rate for high service PM only companies
7.7% is pretty normal (av)
6.6% is doable with some negotiation
5.5% if you have a number of properties with the one agent
less than 5% and you have lost their interest and ability to do a good job for you.
hiya
often you dont get what you dont pay for .................
ta
rolf
often you dont get what you dont pay for .................
ta
rolf
Have you reveiwed what other aspects of the managing agency agreement there are and whether of not you would like any of those changed.
Personally, if the agent is good and actually works for you, why would start being silly and negotiate down.
I would looking at the length of time to terminate the agreement and work out esactly what there responsibilities are.
I make my PM's have the tenant photocopy all keys, remotes, combination codes, batteries to smoke detector as proof of receipt.
They are to photograph the property whilst undertaking all inspections.
Certain works require minimum 3 quotes.
I would not expect them to do these at a reduced income.
Personally, if the agent is good and actually works for you, why would start being silly and negotiate down.
I would looking at the length of time to terminate the agreement and work out esactly what there responsibilities are.
I make my PM's have the tenant photocopy all keys, remotes, combination codes, batteries to smoke detector as proof of receipt.
They are to photograph the property whilst undertaking all inspections.
Certain works require minimum 3 quotes.
I would not expect them to do these at a reduced income.
How much is the weekly rent?
The weekly rent is $350
Hi aitsmoi,
I think you will find it hard to negotiate the management fee down from 5%, as that is actually pretty good. I guess your property is not in a regional setting, otherwise the fee would be more like 7 or 8%. The agent shouldn't charge you a letting fee if the tenant is already in there.
I think you will find it hard to negotiate the management fee down from 5%, as that is actually pretty good. I guess your property is not in a regional setting, otherwise the fee would be more like 7 or 8%. The agent shouldn't charge you a letting fee if the tenant is already in there.
hi ive got 1 ip on the northern beaches the pm fees on my unit are 4%+gst but only because my wife works as an agent and got me the deal through the company she works for.. the pm comission structure where she works is like this
7% retail
5-6% friends& aquantinces
under 5% family
the service is great if your on the northern beaches let me know and ill pass on her details and try get you a good deal
7% retail
5-6% friends& aquantinces
under 5% family
the service is great if your on the northern beaches let me know and ill pass on her details and try get you a good deal
