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From: David Hepburn


Hi,

I'm sure this has been covered already at this forum but a quick search resulted in no matches...

Do you use a property manager? Do you self manage your properties?

Real Estate's charge around 7% for this which in some ways is worth it, but in other ways seems like money for nothing.

Tell me your experiences so I, and others, can learn the pitfalls of what to do/not to do.
 
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Reply: 1
From: Simon and Julie M


Hi David
We have a number of investment properties in the ACT which we manage ourselves bar one which is managed by an agent.
The reason for this is that management rates in the ACT start at 10% for one 8% for two and 7% for three ore more properties.
We have enjoyed the learning experience and found the process rewarding. It may not be for the faint hearted or those with limited time. The property that is with the agent is a way of keeping in touch with market trends.
 
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Reply: 2
From: Miakat .


David,

I'm also managing my one IP. Definitely not for someone who stresses easily or with little time. It certainly is a different experience and so far I am enjoying it (I think) Well I'm certainly earning my 7% savings while I'm learning.

Mia
 
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Reply: 3
From: Kevin Forster


I don't have alot of time to run around after tenants, collecting rent, plus also I think I may be a little bit soft when it comes to a sob story on why the rent's late.

I use an agent for the two IPs and they charge 5% of gross rent and a 1 week letting fee. I think if you look around for an agent and be willing to negotiate you can get better than 7% (if you have more than 1 property).

Kevin
 
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Reply: 3.1
From: GoAnna !


Mia

You said that self managing properties it not for those that get stressed easily or have little time. What have your experiences been so far?

I have found that it takes very little time and so far no hassle.

Anna
 
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Reply: 3.1.1
From: Miakat .


Anna,

Like I said this is my first one so I am very new to it all. That is probably why it is taking a lot of my time. Also it is a five bedroom house with five individuals each wanting different things and paying five lots of rent each week. I'm sure after it has all been running for a while and I feel confidant with what is going on, it'll be a lot easier. All I was trying to say was that it has not been a breeze to start with, and if you don't go into it expecting it to be easy, then you might get a pleasant surprise when it is.

Mia
 
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Reply: 3.1.1.1
From: Francoise B


Does anyone have experience with rental property managers in Perth? Both the places I am currently trying (one IP with each) charge 8.5% (not incl. GST). I am testing them and will go with the one I am happiest with after 12 months. May also have more bargaining power with two IPs. I may be a bit naive, but this is what I have signed up for. Is this the going rate in Perth? Seems that 7% only happens in the Eastern States. Any comments from Perthites would be most welcomed!
 
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Reply: 1.1
From: Cathy Baxter


Hi
We have 2 IPs in a regional city. Because we thought it was easier we listed them with RE Property Managers who sold us the properties.

They had the first house listed without anyone for months - yes we lost heaps. So we ran our own ad and had about 40 phonecalls and about 5 good tenants. We chose excellent tenants (always use application forms). From then on we've managed them ourselves ever since, with only a week or two in vacancies. Tenants come to us and pay the rent, never had a problem. They've done gardens and some outdoor improvements. What more could you want.

If properties are close by i'd be doing it myself. The skill is in finding the best tenant.

Cathy
 
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Reply: 1.1.1
From: GoAnna !


They bring the money to you in person?Wouldn't a deposit book be easier?

Anna
 
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Reply: 1.1.2
From: Michele B


With popular innercity type properties, I've been advertising "rent neg from..." with amazing results. When applying, potential tenants nominate how much rent they're willing to pay. Sounds obvious but not many owners seem to do it. Increased the rent on one of my IPs by $55 pw.

Michele
 
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Reply: 1.1.2.1
From: GoAnna !


Thanks for a great tip. Was thinking about doing this but wasn't sure how it would go down.

Anna
 
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Reply: 1.1.1.1
From: Cathy Baxter


I offer all our tenants a deposit book, or direct debit from their accounts, but it seems like they still want to deal in cash. It's good because you get to know the tenant and see them each week or fortnight and know how they are getting on and whether any repairs are needed.

We are less than 5 minutes from where they live.

Cathy
 
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