Property management fees... advice needed

Hi i'm renting a property out for the firs time in Brisbane, this is what the property manager wants to charge.

8.5% of the weekly rent.

additional fees and charges

Capture.jpg


is this standard?
 
Add ons

Hi i'm renting a property out for the firs time in Brisbane, this is what the property manager wants to charge.

8.5% of the weekly rent.

additional fees and charges

Capture.jpg


is this standard?

Please have a look around at other agencies to compare and contrast. This is an incredible amount of add ons which means you are essentially paying far more than 8.5%.

It is important for investors to be able to budget knowing the bottom line for services - please shop around before you commit

Warm regards

Renee
 
In my experience:

a) 8.5% is a little on the high side. 8% is more normal in Brisbane and there are agencies that are less than that for a single rental.

b) $100 lease renewal fee is daylight robbery. Should be more like $20-$30.

c) End of financial year statement at $27.50 is unfortunately not all that unusual. However, it is not justified. Any properly set-up agent presses a button and the software spits out a PDF. I pay nothing for this from any of my agents.

The rest seem reasonable to me. I do, however, suggest that you get your own professional photos done. First, that sounds like a full monty service that is not required for most rentals. Second, if you contract the photographer yourself then you own the photos.
 
Looks fairly standard for BN, I would want to get rid of the lease renewal fee though, it is excessive. You might be able to find a better deal with item 7 also.
An extra fee for maintenance above 3 quotes? I have never heard of this fee but I cannot remember ever getting that many quotes.
I am generally happy to pay slightly more for a good service but price doesn't necessarily determine quality of PM.
 
An extra fee for maintenance above 3 quotes? I have never heard of this fee but I cannot remember ever getting that many quotes.

Yeah. looked a little strange to me as well, but then, like you, I have never gone out to more than 3 quotes. On thinking about it, either it is a minor item and you are needlessly making work and you deserve it, or it is a major item like a reno and some agents charge a management fee to look after those - I tend to get a bit hands-on and seek my own quotations as well just to make sure the PM is asking quotes from reasonable vendors.
 
That is crazy high! I pay 8.5% however do not pay a lease renewal fee. I pay the $5.5o Postage and petty, no statement fee, no quote fee (which I have never heard of). I did not pay for photos or advertising that was all at the cost of my managing agent. I did not pay an annual fee either for tradesman besides Smoke Alarms which is $70.
Definitely happy with my management by the looks of this:D
 
I pay 8% plus gst, many in the area charge 8.5%. Most are negotiable as many of the fees/additional fees are just a try on. I make it clear I consider these B.S., and have had many grin in acknowledgement. I don't pay P&P or any other excuse for monthly/annual fess, or lease renewal. Tribunal (if ever needed) are usually based on an hourly rate - just make sure not excessive. I find the franchise agents charge the most, some wont budge on price. I notice there is no mention of leasing fee (for finding tenant), usually 1 weeks rent +gst, anything more falls into the B.S. pile.

Some will charge for arranging/overseeing renovation (different to repairs) which is not unreasonable for the time taken considering what it saves you, and I know some strata managers charge for more than 3 quotes which is not unreasonable either assuming they are not getting stupid quotes from unrealistic tradies. I often ring around myself to get my own quotes or estimate of cost.

Do your sums on management fee % versus P&P as sometimes you are better off arguing for a smaller % and pay the monthly fee, other times pay the % but haggle over removal of P&P. Some agents will negotiate on one but not the other.

ie .5% of $400pw = $2.00. (52 x $2.00 = $104.00) Better to agree to $5.50 P&P p/m ($5.50 x 12 = $66.00) and argue for 8% rather than 8.5%.

When signing your management agreement make sure that what was negotiated is represented in the agreement. I have seen honest errors made which needed correcting, but I know others who have later discovered that their agreement is not as per initially negotiated - and too late to change.
 
Last edited:
Back
Top