What are you property manager fee?

[Ace in the Hole]

Jarmotoast,

I'm with Place at Coorparoo.
Got quite a few properties with them so that probably helped getting the 1/2 week letting fee.
Probably saves me 2-3k a year in re let fees.

 

[bentrails]

7.7% - 8.8% across 4 in NSW, QLD, SA.

Price is secondary to all these factors for me -

* customer service and "helpfulness" is the most important factor for me - both to myself AND my tenants.

* termination clause is important so I can get rid of a non-performing manager quickly, as I had to recently.

* I avoid ones with massive rent rolls where you're treated as a number.

* the PM actually does the routine inspections - and this is not delegated out to some random person in the office who doesn't know your property, your tenants or yourself.

 

[nomadic]

4.4% in Melbourne
6.6% in Brisbane/Gold Coast
8.3% in Bangkok/Samui
8.3% in Manila/Cebu

WA prices are crazy. I got quoted 13.5% plus 2 weeks leasing just this week.

It's closer to 25% once you include all their add ons which is why I would avoid WA for property investing.

Or is the PM industry in WA just more greedy than other states?

Yes, I can't see any other reason for it.

 

[D.T.]

Hey DT,

Mate I use Defreitas and Ryan in Rockingham. They have a few offices round Perth.

Jamie runs the show there an is brilliant and Monica is PM. Easy to deal with, gets back to me within a day at most on any requests etc.

No kickbacks or affiliation to the business just very impressed with the service provided.

Do you know if they do Forrestfield?

 

[Tano]

Do you know if they do Forrestfield?

Im looking for a PM in that area too, the 2 biggest are Centurion at 9.35% and Professionals Stirling Clark 9.9% (then plus monthly admin fees, postage petties). Let me know if you get anything under 8%. Else i might PM myself again. Everyone seems to be charging 2 or 2.2 weeks fee for new leasing. It ends up about 16%-17% if everything goes smoothly (eg no court or evictions)

 

[Rixter]

We've got heaps of PM's spread around Australia.

They vary from 7% to 9%.

Interest rate alone isnt the deciding factor though, rather am I getting good value/service for my money.

 

[D.T.]

We've got heaps of PM's spread around Australia.

They vary from 7% to 9%.

Interest rate alone isnt the deciding factor though, rather am I getting good value/service for my money.

Who are you using for WA properties?
Mind sharing their fee structure breakdown?

 

[Rixter]

Who are you using for WA properties?
Mind sharing their fee structure breakdown?

We have a few different one's spread around Perth metro..are you looking to move PM's or conducting PM market placement for yourself?

 

[D.T.]

We have a few different one's spread around Perth metro..are you looking to move PM's or conducting PM market placement for yourself?

Nah, converting perth ppor to ip

 

[Rixter]

Nah, converting perth ppor to ip

Give Investors Edge a call.....they are very very good.

 

[Nick Valsamis]

Regarding most of Sydney, standard price should be 5.5%.
If you are paying more for property management, then you should ensure that it is actually worth the price.

With a rate higher than 5.5%, you should expect service that most don't offer such as 30 min open house, semi-pro/pro property photos, comprehensive communication, service guarantees etc.

 

[skater]

Regarding most of Sydney, standard price should be 5.5%.

Hmmm.....it seems you have a vested interest in declaring this.

For me, I'd rather have a decent PM in a suburb NEAR to where the IP's are, instead of a placed based in Parramatta trying to service all of Sydney.

 

[Rixter]

Hmmm.....it seems you have a vested interest in declaring this.

For me, I'd rather have a decent PM in a suburb NEAR to where the IP's are, instead of a placed based in Parramatta trying to service all of Sydney.

I agree Skater.....that's one of my key deciding points when looking for a PM.

 

[Nick Valsamis]

Hmmm.....it seems you have a vested interest in declaring this.

For me, I'd rather have a decent PM in a suburb NEAR to where the IP's are, instead of a placed based in Parramatta trying to service all of Sydney.

I guess you could say I have vested interest in stopping people from being taken for a ride. I've just seen many companies charge more for the same service and in most cases, I do not believe people should be paying more, because it just doesn't seem fair. That is why I said that.

Anyway this definitely will apply to Western Sydney, but maybe not the Inner West or Northern suburbs etc.

 

[MyPropertyPro]

The biggest problem with quoted percentages is that a lot of agencies will quote a lower percentage but then build in a plethora of other fees for things like statements, disbursements etc that add up and end up being an overall higher percentage that is masked by the fee structure.

As an investor myself, I always preferred one flat percentage that covered everything. I've always accepted that letting a property is a separate cost so I'm happy to pay for that and obviously tribunal fees too. Other than that, all those other little fees are there to maximise the agency's returns and in my view is quite deceitful. We've structured fees at MPP to fit what I expect however you'd be absolutely amazed at the internal shameless industry promotion and education among property managers on how to get the most money out of landlords.

As with anything, you get what you pay for and a lower fee generally means they're paying their managers less and not investing in training and software/hardware that supports the product. For the same of a few dollars each week, it can make a vast difference to the investment and that's from experience on both sides of the fence!

 

[Befuddled]

5.5% inc G.S.T in Sydney.

Pretty sure you can shop around a bit and get 4.XX% but happy with my PM so don't really want to switch.

 

[Chooke]

Do you know if they do Forrestfield?

They should do as they manage my properties south of cannington. Give them a call and ask... btw, their 10% all inclusive fee is truly all inclusive as it includes letting, inspection, even appearing in court/tribunal on your behalf if you find yourself in that unfortunate situation with a tenant.

 

[D.T.]

They should do as they manage my properties south of cannington. Give them a call and ask... btw, their 10% all inclusive fee is truly all inclusive as it includes letting, inspection, even appearing in court/tribunal on your behalf if you find yourself in that unfortunate situation with a tenant.

Thanks heaps. Looking to rent my ppor out from about July

 

[MIW]

Can I ask what is your rent agent fee now?

Unfortunately from my experience this a wrong question to ask. You see every state, every manager, they charge differently.
Some can have lower mgmt. fee yet add additional advertising, or letting fee, or database fee etc...
Recently, I calculated that around 10% will be the total cost for the IP in Sydney, though premium area. Others charged 13% when I added the total fees, and most agents (sorry) did not provide the flexibility for the tenant or the landlord.
I actually had to produce a spread sheet trying to understand the total fee structure and interview about 5 agents, after research. In the end I crossed and changed heaps on the Management Agreement and went with the one that provided most flexibility and other factors of importance to me.
I think this is a negotiation process in itself, finding the right agent to manage, being fair not cheap, yet flexible and reasonable too.
Also, I ask heaps of questions based on my previous experience with other agents.

 

[D.T.]

Also, I ask heaps of questions based on my previous experience with other agents.

What kinda things?