Pro's & Con's - PM vs Private

[RumpledElf]

I have a list of fees here from our local and only PM so these figures are 100% accurate.

Management fee 9.9% or $16.50 minimum
Letting fee 2.2 weeks rent
Lease renewal fee 1.1 weeks rent
Inspections $44 each
Monthly fee $8.80
Yearly fee $33
Newspaper and out of pocket expenses at cost
And if I had my house in another town, 11% maintainance supervisision fee.

Lets see ... assuming a 1 year rent, quarterly inspections and no vacancies:

Rent $5720
Insurance $420
Rates $470
P&I mortgage payments $2340 (yeah, I know, if it was IO this would only be $1300 but that's how the loan is set up and I'm not paying to change it)
Actual money in the pocket: $2490
PM fees $1128.5

PM fees are 45% of my profit!

I like to use my time to make money not save time to SPEND money. PM? Hell no.

 

[ianvestor]

Ok. Just Channel 7 in the morning then with Kochie, Mel & Ross.

Jeez. How about instead of Kochie, Mel & Ross. I eat things in the morning.

 

[Wollemi]

Managing your PM

I used a REA to manage a property and have real doubts about ever trusting a REA again. Im not sure what they think their role is, but it certainly doesnt fit with what their agency literature and my contract says. If I had been able to, I would have had to manage the PM's and REA myself, but was interstate and overseas, which gave them free licence to do nothing except collect rent, and that was not even up to market value. The only thing I can think is that they wanted the property to run down so badly that they could make a good quick sale from a disgruntled owner, and it seems from local goss I am not the first who is considering this. Does anyone know how to get some accountability from a bunch of tricksters, in additon to the normal legal channels such as the CTTT. If I were you, I would ask to see one of the properties someone has vacated and their outgoing inspection report and see if they match up. It will tell you a lot about whether they walk the talk. Hope that what happened to me never happens to anyone, for that reason I am wading through the mud of keeping on at them. Even their peak body and franchising head dont take any action. Good luck Woll

 

[Perp]

Most people would do it with very little regard as to whether it is legal anyway (I think) - and I doubt foreign students care about fire doors, acoustic insulation, egress distances etc... as stipulated in the BCA and afterall, it is probably one of the easiest ways to dodge income tax I might add.

Better read up on leglislation. There are laws regarding these things. Otherwise, in the event of a catastrophe, you may well find yourself in prison, with plenty of time to read.

We can only hope.