Property Managers costs

Hi

I would appreciate some advice on average fees Property Managers charge.

What percentage on the rent etc

Thanks

MCD
 
Hi MCD,

It will usually depend on a number of factors such as:
  • Number of properties they manage for you
  • How well you can negotiate the contract
  • Amount of competition in the area

But to give you an average, IME, they will ask something like:

Management fee: 7-7.5% + GST
Letting fee: up to 2 weeks for a new tenant; ½-1 week for a re-lease
Posts and petties: $0 - $10 pm
 
It also depends on the state, eg Vic is generally 7% plus GST however I have heard SA can be 8% plus GST and WA up to 12% GST.

Also, you can negotiate this rate and can usually get 1% off, especially if you have multiple properties.
 
Mine range from $0 (due to a previous stuff up of leasing arrangement) annual to 9%.

Average of mine around 7 and 8.

I tend to go on service now, rather than cost, as a small % change on the rental figure doesn't, in my opinion, work out to too much at all.

I find it better paying a bit more, as I expect alot from my PM's.

I agree that all costs add up, but I conclude for the PM fees I am paying (based on my current properties) as pretty cheap, compared to other fixed costs of IP expenses.

Cheers,

F
 
My costs mirror Rob's post to a TEE. I'm in Victoria

Management fee: 7% + GST
Letting fee: 2 weeks for a new tenant;
Posts and petties: $0 pm electronically; $5 pm snail mail - I use electronic communication.

Cheers
Buddybee
 
8.8% for the high fee chargers (if they can get away with it)
7.7% is pretty much standard
6.6% if you can negotiate a bit (this is what I pay for PMs with a couple of my properties)
5.5% if you have a lot of properties with one PM
After 5.5% you have lost their interest in doing any sort of good job for you – just not enough money in it for them.

This thread will also give you some answers:
http://www.somersoft.com/forums/showthread.php?t=56956
 
You need to compare apples with apples...

Fees and charges vary a lot with all property management companies.

Work out what your property manager will do for you. Then compare the annual cost of all possible fees and charges.

Beware the low comm agents that then charge for standard internet listings, routine inspection fees, end of year statement fees, maintenance fees, water meter reading fees, insurance processing fees...

It comes back to money is what you pay, value is what you get.

Can your pm save you money in other ways? How do they value add to their exisiting services? What kind of communication will you get, frequency, quality? How accesible are they when you and your property is in need of their services?

Don't just look at the percentage value - look at the overall package. And if any property management company is not willing to one, give you a service guarantee or two, be transparent about their fees and charges - look for someone else.
 
Work out what your property manager will do for you.
Hi,

What should they do for you as standard duties for those rates...and what extra duties might they do that would be considered to be "above and beyond the call of duty".
Thanks.
 
As per previous posts, my ACT/NSW charges 7.7% + 1 week letting(1 property), no admin or condition report charges, but I remember my SA PM used to charge 8% + 2 weeks, no admin or condition report charges. Both have been excellent PMs and I would pay more. Unfortunately SA PM sold up to LJ Hooker and I couldn't find a good one, so I self manage there now. I would phone around and ask for a management information pack then compare services as well as prices.
 
Hi,

What should they do for you as standard duties for those rates...and what extra duties might they do that would be considered to be "above and beyond the call of duty".
Thanks.

Hi Frogger,

Things property managers can do that are over and above the call of duty (this is what I have done recently - so I'm not speaking for other property managers)
- one of our co-members in here recently bought a house in Brisbane (he is Sydney based) I attended his building inspection for him and emailed him full list of issues with photos.
- then I attended two pre-settlement inspections.
- now co-ordinating the clean/maintenance/safety prep pre-tenancy.
- I go to the property everyday (took out the garbage yesterday)
- another proeprty - went to silicon around the sink because the tenant complained that the water was leaking into the cabinetry below - whilst there I did the vanity basin as well as re-adjusted the door knob that wasn't closing and tightened the loose railing on the staircase.
- am going to one property this afternoon to measure and assess repairs for owner for a new ktichen reno - I will do the project manging on this. (And yes, I am experienced and qulaifiied to assess this - Interior Design CATC and flipped several properties)
- owners with new house and land (I'm very experienced in this field) I am going to their properties during construction and taking photos to update them (I haven't earnt a bean from them yet) and I will attend the handover inspection, meet with valuers, quantity surveyors...all before I get tenant into the property.
- I contact my owners at least twice a week with updates when their properties are in need of attention...could be too much for some, but better more than not at all.
- one tenant said the hot water was leaking so I went to have a look because what tenants say things are and how things actually are can be two very different things - valave was leaking, so I put a hose and re-directed from house, took photos to explain to owner and further instructions. Waster no longer next to house (condusive termite conditions - mould issues) - hose was from my house :) so this didn't cost the owners anything.

Just generally, I email my owners twice monthly (with each disbursement of funds)

All inspections come with photos.

All statements accessible online, including any list of maintenance, inspections, tasks etc. Very transparent.

All owners phone calls and emails responded to same day or within 24 hours.

...:) I do more, but my list is getting too long....oh, I also provide a service guarantee so if you are not happy, you get your next two months management fee (8.8% inc gst) free.
 
7.5% plus GST, first 3 months free to prove the PM is up to the task and not just another lazy one. By-law, its 2 months notice to transfer managements to another office, if your PM has put their money where their mouth is – Who in their right mind wouldn’t re-lease the management ASAP to another office of your choice seeing they aren’t earning money on it.
 
7.5% plus GST, first 3 months free to prove the PM is up to the task and not just another lazy one. By-law, its 2 months notice to transfer managements to another office, if your PM has put their money where their mouth is – Who in their right mind wouldn’t re-lease the management ASAP to another office of your choice seeing they aren’t earning money on it.

It isn't law for a 2 month change over. If you don't want this - cross it off in the agreement. I provide my clients with a 7 days notice - if you really don't like me - I will close your file and courier to your nominated PM in 24 hours.

If your property is vacant and you want to give it to 2 or more agents and to compete - first to rent can have management - cross off the clause in the terms and conditions - (PAMD-Qld)

If you have a current PAMD in place - and the agent agrees - it can be decreased to 30 days.

However, if they have breached any part of the agreement - and you definately want to leave - you can push a little harder for the release.

Simply put - if you are not happy, why hold you for that extra time?
 
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