Onsite Manager playing Managing Agent role

[mitch.mia]

Hi All

I am coming up to settlement on a property I purchased in QLD.
The property is a part of a 60 lot development which has an onsite manager, nothing dissimilar to other large developments.

However, the onsite manager is also offering to be the managing agent of the complex, something that I haven't heard of before, certainly in other developments I have purchased in.

They offer all the usual services and charge the usual fees but I guess their point of difference is that they can look after the complex using both "hats".

My concern is that since this development will advertise a substantial amount of properties on the rental market at the same time, if the onsite manager is also the managing agent for most, then how does one's property get the priority and attention it would otherwise get from a traditional PM?

Is this setup common in QLD, I would like to hear your opinion or experiences with this type of setup.

FYI, the onsite manager has done this with other developments and they are registered managing agents and have appropriate resources such as access to tenancy databases,etc.

Thanks in advance

 

[natmarie73]

It is a pretty common setup in QLD with large townhouse/unit developments. The onsite manager usually purchases management rights and it is his/her business to then look after the complex and take care of everything a PM would as well as caretaker for the complex.

You will be paying for it as part of your body corporate payments anyway so might as well use them instead of regular PM - they do the same job and the onsite manager is usually better as they are on top of things pretty quickly as they live on site.

 

[mitch.mia]

Thanks for the information.

Just to clarify, the onsite manager is being paid by the body corp as a caretaker role but the PM side of their job is 8.8% of rental in addition to body corp.

 

[Tania]

Hi Mitch

This as has been mentioned is quiet common and can be an advantage to you the investor as the agent is onsite normally 24/7.

As part of his / her remuneration package the onsite manager receive a salary from the Body Corporate and the rental management tops up his income.

In a large complex i think it is a sound decision to utilise the onsite management.

 

[Grego]

I have 2 ips in Brisbane with onsite managers/PMs

I was hesitant at first and was thinking of giving to outside PMs after reading lots of articles on the dodgy practices of some onsite managers. However I decided to try them out and I think it was a very good decision as said earlier in the post they tend to be on the spot a lot quicker if there is a problem, they have a vested interest in the "complex"being maintained as it helps them rent out properties easlier ( adding to their income) and if done properly it is a valuable business they can on sell

 

[Raddles]

Hi there
to those of you with properties with onsite managers, do you have permanent rentals or short term rentals and what sort of commissions are you being charged?

I note that I am negotiating with my on site manager at the moment in Brisbane and am trying to find out the market norm
thanks

 

[Grego]

Either 6 months or 12 month leases and paying 7.5% + GST on both.

Greg

 

[mitch.mia]

Thanks for the responses on this topic

I had decided to go against the grain and engage an outside PM to manage our property.

The decision was based on a gut-feel after meeting the onsite manager and it also helped that I got a cheaper rate from a reputable PM.

Only time will tell if it's a regretful decision.
Cheers