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From: Paul Clarke
This is my first post, have only recently stumbled upon this great forum... hoping some experienced campaigners can offer some suggestions about what the "going rate" (acceptable) is for 'Property Management Fees.
The reason I ask is that my brother has recently bought an Investment property in Brisbane. He has a 'Property Management Agreement' with Ray White (which he has not signed yet. They are quoting a Management fee of 8.5%!! (Made up of Letting Fee - Equiv to 1 weeks Rent, "5% Rent Collection" and 3.5% Management Fee). I figure they have 'cleverly' split the fee like this as it sounds better than saying 8.5%!
Now I reckon this is just a bit high. I do not have an IP yet (working up to it), but I rent in Melbourne and I rang the agent I pay rent (big Firm)to and they charge 7% (and they do all Ray White are offering) which sounds more realistic.
Therefore, I am wondering if I should suggest my brother 'negotiate' this fee, and the best way to do this (e.g. should he ring a few agents in Brisbane to see what the 'going rate' is? etc) and then get back to Ray White and use this to help negotiate a better deal? Suggestions/Comments Appreciated.
Lastly, on the Agreement it has a section for "Special Instructions To Agent" and "Special Conditions For Tenancy" which are blank. Are there any suggestions as to what might be worthwhile Inclusions (if any) in these sections of the Agreement? Again Comments/Suggestions appreciated...
Regards
Paul
(A Converted Property Investor - well soon to be)
This is my first post, have only recently stumbled upon this great forum... hoping some experienced campaigners can offer some suggestions about what the "going rate" (acceptable) is for 'Property Management Fees.
The reason I ask is that my brother has recently bought an Investment property in Brisbane. He has a 'Property Management Agreement' with Ray White (which he has not signed yet. They are quoting a Management fee of 8.5%!! (Made up of Letting Fee - Equiv to 1 weeks Rent, "5% Rent Collection" and 3.5% Management Fee). I figure they have 'cleverly' split the fee like this as it sounds better than saying 8.5%!
Now I reckon this is just a bit high. I do not have an IP yet (working up to it), but I rent in Melbourne and I rang the agent I pay rent (big Firm)to and they charge 7% (and they do all Ray White are offering) which sounds more realistic.
Therefore, I am wondering if I should suggest my brother 'negotiate' this fee, and the best way to do this (e.g. should he ring a few agents in Brisbane to see what the 'going rate' is? etc) and then get back to Ray White and use this to help negotiate a better deal? Suggestions/Comments Appreciated.
Lastly, on the Agreement it has a section for "Special Instructions To Agent" and "Special Conditions For Tenancy" which are blank. Are there any suggestions as to what might be worthwhile Inclusions (if any) in these sections of the Agreement? Again Comments/Suggestions appreciated...
Regards
Paul
(A Converted Property Investor - well soon to be)
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