Property Mangaement Fees

[Jodie701]

Do these fees look reasonable?


Management Fee
• Rent Collection & Management Fee 7% + GST

Marketing Levy
• Marketing your property on the following Websites:
www.domain.com.au
www.realestate.com.au
www.exclusivere.com.au
www.homehound.com.au $150 + GST
Newspaper advertising At cost

Letting Fee
• 6 month lease 1 weeks rent + GST
• 12 month lease 2 weeks rent + GST

• Residential tenancy agreement (lease fee) $30.00 + GST
• ($15.00 refunded by tenant)

Monthly Services Charge $5 + GST
• Rent negotiation and lease renewal fee $35 + GST
• Income & Expenditure financial year report $25 + GST
• Additional Management Fee for fully furnished property 2% + GST

• Attending & Preparation for any Tribunal Matters $77 P/Hour

Optional Extras
• Professional Photos $150 + GST
• 6 x 4 sign board $240 + GST




This is my first Investment Property, and it's hard doing research from another state.

 

[Rixter]

Do these fees look reasonable?

Marketing Levy
• Marketing your property on the following Websites:
www.domain.com.au
www.realestate.com.au
www.exclusivere.com.au
www.homehound.com.au $150 + GST


• Rent negotiation and lease renewal fee $35 + GST
• Income & Expenditure financial year report $25 + GST
• Additional Management Fee for fully furnished property 2% + GST


Optional Extras
• Professional Photos $150 + GST
• 6 x 4 sign board $240 + GST

For WA managed properties, the above expenses seem excessive or not required.

For some reason a lot of PM fees in WA are charged additionally to whats included in eastern states PM management fees.

 

[Jodie701]

Thanks Rixter,

This for Parramatta NSW.

The Optional Extras and the Additional Management Fee for fully furnished property doesn't really apply to us at the moment but yeah I'm a little concerned by the marketing fee.
So to lease a property we're looking at one weeks rent, plus GST plus $150.

I wonder if anyone from NSW can comment.

 

[Xenia]

Just a quick calculation you are looking at around 17 to 19% of the annual income of your property to have it managed on those fees.

They would be so much more transparent if they increased the managment fee and took some risks along with the client instead of chaging for everything and even adding fees for the purpose of adding fees.

Why does it cost more to sign a tenant on a 12 month lease? It's exactly the same work and the same paperwork!!! Makes no sense!

If they are charging for tribunal hearings and letting fees for new tenants is it in their best interest to find a stable long term tenant? They would make money out of lease breaks!

17-19% management all up is not unreasonable for a good property manager it is the break up of costs that concerns me they are not in the best interest of the client.

 

[Propertunity]

This for Parramatta NSW.
I wonder if anyone from NSW can comment.

In Sydney you can get 5.5% (min) to 7.7% (max) and everything's included in that number except half lease fees which are $16.50 and the first week's rent for a new tenancy and a monthly statment fee of $2 - $4.

I don't know how WA LL's manage with their fees as high as they are.

 

[Collector]

These fees seem excessive for Parramatta.

No need for photo sign - $250 - these are used for auction campains and high end sales.

No need for professional photos

7.7% is normal

1 week + 10% gst - regardless of the term of the lease, + no reletting fee

18 LPF fee - normal (i.e. $30 + gst less $15 from tenant)

Rent neg. fee - never heard of that before - isnt that why you appoint an agent? - should be free.

$77 per hour at tribunal - maybe- should be covered by your LL insurance anyway.


Can I ask which agent you got these costs from and the type of property you are leasing - i may be able to help you


I currently have 2 available properties in the Parramatta Area, 2 bedroom unit in Granville asking $265, and a 2 bedroom unit in westmead asking $320. Tenant in both move out between 16-18 March. Placed both on internet sites metioned, had 60 calls/emails for Granville property, 30 for westmead.

Application recieved yesterday for granville - site unseen -processed yesterday - great rental history for 4 years, secure government job - showed property today and paid deposit, lease to start day after current tenant vacates.

In the current market - you can negiotiate harder, remember its a landlords market with low vacany rates etc. shop around more - and don't just ask what there fees are - write letters to multiply agents tell them what you expect for service and what you are willing to pay - im sure that you will get replys.

 

[Jodie701]

I don't understand the two weeks rent + GST for a 12 month lease either.

If I'm not mistaken, this would be for the first sign up of the tenant. So I'd be better off if I went for a 6mth lease (1 weeks rent + GST) and then if they decided to renew for 6mths after that then I'd only be up for $35 for a renewal fee. Unless I'm missing something?

Collector this is Exclusive Real Estate in Concord West.
The Investment Property is a brand new 2 bedroom, 2 bathroom, 1 car bay, unit in Harris Park / Parramatta. You recommended 3 local Real Estate Agents to me in another thread. Star Partners never answered my email, The small agency you recommended doesn't have email and the medium agency you recommended (PRD) did get back to me although slowly and got the address of the property wrong on the letter they sent me. So I'm somewhat unconvinced that they are up to it. Any other recommendations would be great, including your company. So far Exclusive have been very quick and helpful with responding to my inquiries. So they seem like the best bet.

 

[Dazz]

I don't know how WA LL's manage with their fees as high as they are.

Yer not the only one who's scratching their head...


When I first started out, the sum total of all fees levied amounted to 22.3% of the total rent collected, and they installed woeful unemployed hooligans who wrecked the place. Only cost 25K and 3 months to fix it back up.


The old man and I had to apply a bit of soothing cream to fix the flea infestation around our arms from carrying out the main bedroom carpets where the stray litter of pups had been born. Joy.


We eventually got wise and sacked the PMs, kicked out the dregs and opted for a mob who only charged us 18.8% of the total rent collected. New Tenants were installed and they looked after the place magnificently for 6 months before proceeding to wreck it again and stop paying rent. Only cost 7K to fix it up that time.


We eventually got really wise, pulled the shotty out and shot the dog of a house. Never bought another. Never paid PM fees again. Bliss.


I am proud to say we had no clue, but it only took a couple of years and a few 10's of thousands of dollars after tax to learn the necessary lessons.


If you are expecting 5.5%, no problems and no other costs - then good luck.

 

[redwing]

We are paying anywhere from 6-7% with our WA Properties (plus some of the associated fee's below), however, have found things MUCH more reasonable in NSW and QLD

Currently paying 5.5% in NSW without all the associated blood sucking by WA Property Managers

Here's some WA fee's, a new addition I have seen has been $2.50 per photo as well

company 1

Letting fee-
From 8.5% to 9.35%

Fixed letting fee for each new tenant-
From N/A to 2 weeks rent +GST (less 1 week if paid by tenant)
Note, tenant no longer pays a week so PM's "try" to hit you up for the full two weeks yourself

Management fee-
From 8.5% to 9.35%
most are at 9.35%

Property condition report-
From $60 to $80

Final bond inspection-
From $38.50 to $65

Inventory reports-
From Nil to "by negotiation"

Routine inspections-
From $38.50 to $45

Court Attendances-
From Nil to $99 p/hr

Postage and Petties-
From $5.50 p/mth to $6.60 p/mth

Meeting attendances-
From Nil to $99 p/hr

Advertising-
From "as applicable" (?) to $60 p/wk max when letting IP

And another WA fee schedule (from 2005 though, so bound to have changed...I mean, increased).

company 2

1 MANAGEMENT FEES
9.35% For 1 unfurnished property
10% For 1 furnished property
Discount of 10% for multiple properties

2 LETTING FEE
For each ingoing tenant there is a letting fee charged at:
Two weeks rent plus GST for up to 6months lease
Three weeks rent plus GST for a 12months lease
This fee is offset by one weeks rent paid by the tenant.

2 PROPERTY CONDITION REPORTS
$55.00 Per Hour (Max. 4 Hours)

3 ROUTINE INSPECTIONS
$55.00 Per Inspection

4 FINAL INSPECTION (BOND)
$55.00 Per Hour (Max. 2 Hours)

5 ADVERTISING
Until Let

6 TENANT CREDIT CHECK
$7.70/per tenant (REIWA)

7 TITLE SEARCH
$12.00

8 INVENTORY REPORTS
(If furnished) $55.00 Per Hour

9 POSTAGE (MONTHLY)
$7.70 Local
$11.00 Outside Perth
$16.50 Overseas

10 COURT ATTENDANCES
(If required) $66.00 Per Hour (Max 5 Hours)

11 REPAIRS / OUTGOINGS
$200.00 – Contact Owner First
(unless an emergency)

12 CHARGE FOR ATTENDING MEETINGS
(If required) $66.00 to $132.00

13 ANNUAL SUMMARY
(If required) $35.00

14 BANK FEES
Standard bank rates

 

[travelbug]

Is that the agency the Off The Plan people recommended? I'm assuming so.
They need to get their kick back. You're paying for it.

Go elsewhere. That's ridiculous.

I agree with proportunities figures.

And NO I wouldn't go for 6 months. It comes around too quickly. If you are new to this in 5 months you will start worrying about getting a new tenant. A good PM won't chage you double to get someone for 12 months.

 

[tez]

Do these fees look reasonable?

Ive got a unit in Rosehill and get charged the following in fees:

• One week rent + GST per lease
• $18 tenancy agreement fee
• 7.7% management fee
• $5.50 admin fee per month
• $55 for annual tax summary
  
  Plus some other charges if they fall due, like court / tribunal at cost
  
  The rate is basically the standard fee for the real estate agents I visited when I was first looking around

I currently have 2 available properties in the Parramatta Area, 2 bedroom unit in Granville asking $265, and a 2 bedroom unit in westmead asking $320. Tenant in both move out between 16-18 March. Placed both on internet sites metioned, had 60 calls/emails for Granville property, 30 for westmead.

Collector, who are you using to manage the properties? I have a unit is Rosehill and am looking at reletting at around $270 p/w. Only got advertised late last week so Im not sure how many applications have been received by my PM yet.

 

[Jodie701]

Up Date:

We asked for a discount. They offered us the following:

Management fee reduced from 7.7%& to 6.6%

Letting fee 12 months lease is equal to 6 months fee (i.e. 6 month lease is 1st weeks rent, 12 month lease is first 2 weeks rent), however we cap it off at 1st week’s rent regardless of the lease length

Marketing levy of $150.00 is waived

I'm feeling much better now.

 

[Rixter]

Well done Jodie - as you've discovered everything's open to negotiation.

 

[tez]

Up Date:

We asked for a discount. They offered us the following:



I'm feeling much better now.

Out of interest, who is this with?

 

[Peter 14.7]

In Vic you pay 5.5% inc GST and one week leasing fee.

Some agents charge $2.50 per stament which is ripoff and can equate to another 1% on affordable properties.

FYI Peter

 

[asdf]

17-19% management all up is not unreasonable for a good property manager

Ouch! But you're kind of right though. Not having to spend $20-$30k after years of tenancy to spruce the place up is probably well worth it. Tell me again why we bother with this IP rigmarole?