Property management fees
- Thread starter Gr8teful
- Start date
"Standard" rates usually start at about 7.5% + GST. Depending on the number of doors, you should be able to negotiate this lower, say perhaps to 5%.
Then you may have letting fees (typically 1 week's rent) and other miscellaneous, like statement fees, etc.
Then you may have letting fees (typically 1 week's rent) and other miscellaneous, like statement fees, etc.
It depends on what you can negotiate.
They can be as low as 4% +GST or as high as 9% + GST
Some examples:
http://www.bryanbaker.com.au/management-fees.php
http://lunapm.com.au/sites/home/luna-fair-flexible-fee-plans.html
http://www.propertyinvestment.net.au/fees-services.htm
4% that sounds like a good deal! I'll try and see if someone can do that form me
Just remember, that often you get what you pay for.
4% that sounds like a good deal! I'll try and see if someone can do that form me
Let us know how you go.
whats the rent per week?
don't look at what % you can get but the $ value of the fees per year.
someone else may get a lower % but there property could rent for $1000pw
don't look at what % you can get but the $ value of the fees per year.
someone else may get a lower % but there property could rent for $1000pw
cheapest agent can be most costly
PM is a business. If you charge 4 or 5% etc you need to manage more properties per Property Manager to make the same profit as someone that charges 6 or 7%. Some agents also suck you in on cheap fees then increase them after 12 months.
Ask how many properties they will be managing and choose if you want better service and results or lower ongoing tax deductable charges........
PM is a business. If you charge 4 or 5% etc you need to manage more properties per Property Manager to make the same profit as someone that charges 6 or 7%. Some agents also suck you in on cheap fees then increase them after 12 months.
Ask how many properties they will be managing and choose if you want better service and results or lower ongoing tax deductable charges........
A new agent started in my area. They were charging 3% + GST. 12 months later they went bust and took all their landlords money with them. One of their larger clients was owed nearly $70,000 in rent.
at 3% i can see why
cheapest agent can be most costly
PM is a business. If you charge 4 or 5% etc you need to manage more properties per Property Manager to make the same profit as someone that charges 6 or 7%. Some agents also suck you in on cheap fees then increase them after 12 months.
Ask how many properties they will be managing and choose if you want better service and results or lower ongoing tax deductable charges........
PM is a business. If you charge 4 or 5% etc you need to manage more properties per Property Manager to make the same profit as someone that charges 6 or 7%. Some agents also suck you in on cheap fees then increase them after 12 months.
Ask how many properties they will be managing and choose if you want better service and results or lower ongoing tax deductable charges........
I pay close to 10% on 2 of my properties and am not particularly fussed paying this much if the service is good. But both of these properties I have had the PM contact me with "oops the lease expired 3 months ago, will follow up to get this renewed ASAP" Admittedly probably a bit lax on my part in that I should have lease expiries on my radar but just expected it to be taken care of with the 10% fee
Admittedly probably a bit lax on my part in that I should have lease expiries on my radar but just expected it to be taken care of with the 10% fee the % fee should not matter. its that that % turns into if at 3% the business makes $400pw because the property rents at $250pw than they have an issue
but if at 3% the business makes $2000PA because the rents at $1000pw that no issues.
Other charges
Please look at other fees including letting fees, re-letting fees, inspection fees, tribunal hearing charges and most importantly exit charges in case you are not happy with their services.
Good luck
Please look at other fees including letting fees, re-letting fees, inspection fees, tribunal hearing charges and most importantly exit charges in case you are not happy with their services.
Good luck
Whilst % is important, the level of service and communication you receive is more important.
The difference between 5.5% - 7.7% is slightly over 1 weeks rent. An inefficient property manager can easily cost you more then 1 week when you have a vacancy.
Repairs are another area where an efficient property manager will save you money.
If you have to chase your PM for repairs, rent increases or to return your calls, you are better off finding a better property manager. If it costs you a few more $, so be it, you will be better off in the long term.
The difference between 5.5% - 7.7% is slightly over 1 weeks rent. An inefficient property manager can easily cost you more then 1 week when you have a vacancy.
Repairs are another area where an efficient property manager will save you money.
If you have to chase your PM for repairs, rent increases or to return your calls, you are better off finding a better property manager. If it costs you a few more $, so be it, you will be better off in the long term.
