Sydney Property Management Rates

[paulzag]

I have an offer on the table to place 3 units with the same property manager. After my comments I'm also after public or private feedback from other forumites.

It's been 10 years since I've used a Sydney PM.

Anyway, the PM says 6% for the three (normally 7.5%) and normal 1week letting 1/2 re-letting. Those were numbers I had in mind so seemed ok.

But the agency agreement came in the mail. Everything is +10% GST, which shouldn't surprise me but ticks me right off. I have to quote GST inc prices so why shouldn't they?

These units will rent for ~$200pw. I'm favouring 6%, 1 week letting fee inc GST.

Anybody out there got any advice?

Regards

Paul Zag - Dreamspinner

 

[bbruham]

G'day PaulZag,
I have two of three units managed by one agent for 5%, including GST.
This is in Sydney, Northern Beaches.
In the beginning they wanted 7% plus GST. I refused to deal with
them, said I would go else where.
Bruce G.

 

[Lotana]

Paul,

I had a unit in Randwick managed by an agent (I sold it a year ago). They charged 4%+GST, 1 week letting, 1/2 week reletting. Rent at the time was $320/w. Originally they wanted 5%+GST.

Hope this helps.

Say cheese

Lotana

 

[handyandy]

Hi Paul

I deal with 5 PM in Sydney all charge 5% 1week/ 1/2 week letting reletting.

All charge the GST on top. They sure as hell didn't absorb it

Watch out for tribunal costs as a qoute shocked me about 2 years ago. They qouted a $300 flat tribunal fee even if the matter did not proceed to tribunal.

My view on the tribunal issue is that the agent put the tenant in so should share the responsibility (cost) of resolving any problems.

Cheers

 

[geoffw]

Paul,

Regarding the charging (or the quoting) of GST, I recently had dealings with an electrician.

He quoted me a per hour figure, which I accepted.

I was unhappy with the work, and with the charges.

I was able to negotiate with him to include the GST in his originally quoted hourly rate, as I felt that, legally, it should have been included (orat least mentioned) in the original quote.

I do feel that many people are misusing GST to underquote- at least now I know to ask the question.

 

[Crystal]

FYI

The ACCC is reminding businesses that they should include GST in the prices of goods and services they advertise, display or quote to the public. Penalties for breaching this part of the Trade Practices Act range up to $200 000 for businesses and $40 000 for individuals.
Cheers,
Karen

 

[JoannaK]

The property manager is required to quote fees as GST inclusive, but, if my memory serves me correctly, when the Agency Agreement is written up, it is written up exclusive.

I'd be renegotiating with them.