Newbie... to property managers in Melbourne

[DoAndroidsDream]

Hi all,

I'm in the midst of some research for property managers in Melbourne... nothing confirmed as of yet, just doing some homework beforehand.

I've called a few property managers (including some recommended from this forum) and found that the management fees vary from 6% to 8%. Sydney seems to be a bit cheaper at 5%, which is a little surprising.

According to some old threads, some PMs even manage payment of bills, strata, land tax, etc. I'm a bit wary of this, though.

Based on your experience, what should I be looking out for? And is 6% to 8% standard with a 2 week letting fee for new tenants in Melbourne?

Any recommendations for a Melbourne PM (North)?

Thanks so much,
Android

 

[D.T.]

Have a look at Qura?

 

[lee.omare.com.a]

A two week letting fee seems like a lot. In Sydney's East it's generally 1 week. A safe bet is generally the big franchises because they receive resources from head office.
Ask the agent for a quick summery of the marketing campaign they would do for your property. You'll quickly learn when managers have substance and which don't. Cheers

Edit: Also be wary of the notice period termination clause in the management agreement and seek to get it reduced if possible. It tends to protect agents if things go wrong and the relationship breaks down.

 

[badcliq]

Hi all,

Based on your experience, what should I be looking out for? And is 6% to 8% standard with a 2 week letting fee for new tenants in Melbourne?

Any recommendations for a Melbourne PM (North)?

Thanks so much,
Android

That's pretty standard. I would not pay for advertising though. Check the re-letting fee too.

The exclusive period is usually 30,60 or 90 days, depending on the authority you are going to sign. It is negotiable. You can switch anytime after that.

When you say North, is it Epping area?

 

[Lil Skater]

2 weeks or around 3.3-4.4% of the rental is pretty standard as a letting fee here.

Most agencies don't have a specific notice period to be given if you wish to terminate, however there will be an exclusive period which can be anywhere from 30-90 days.

Reletting fees to the same tenant you could expect anywhere from nothing, right up to 1 weeks rent. Most agencies will also charge postage, petties, VCAT preparation and attendance, insurance claims etc.

Also make sure the person you meet is the one managing the property. A lot of offices have BDM's who are simply sales agents and do not manage the property. You may get along well with them, but if they're not the ones working for you, I think you're wasting your time.

 

[skater]

Have a look at Qura?

+1

www.qura.com.au

 

[DoAndroidsDream]

Thanks for your responses, everyone!