What are you property manager fee?

[MIW]

What kinda things?

Where do I begin?
Some may include:
How do they deal with no payments, late payments, part arrears, what processes they have in place?
Are any of the processes outsourced, like their payments to landlords?
How many property managers they have, do I have one point of contact, or I deal with different managers for maintenance issues, payments, etc...
I negotiate 7 to 14, if required to change managers, if they are so good why do they require 30 to 90 days?
I negotiate on fees, what's part of management fee what's not? Also, I prefer fixed renewal fee rather than a % or 1/2 weeks etc.. No flexibility for tenant or landlord there, just favours their fee structure!
How do they process and manage claims?
About advertising process, when they list during changes or listings, wether they display in their premises, what websites as I list them on the contract, how many photos I require, what fees, etc...
For fixed contract terms, I state I require flexibility, to never renew during unfavourable period like school holidays, so may be 9 or 3 or any 24 months etc...

Basically I go to great detail in research based from past issues I have had. So I then ask how they handle those unforseen issues that may arise! Usually my contracts have heaps of crossed and or modified lines....

 

[donkey]

10% in WA is crazy. How do they get away with that s***

 

[D.T.]

10% in WA is crazy. How do they get away with that s***

I'd be pretty happy if I found someone that was 10% in WA.

 

[MyPropertyPro]

Look past the percentage

We just put up a post on this exact topic here.

Your percentage shouldn't just be looked at in isolation. Unfortunately it's a very common problem that property managers will quote a low percentage and then hide an assortment of fees into the management agreements that can take what you perceive to be a low fee into an effective double digit percentage fee very, very quickly.

Look past the quoted percentage, do the maths and ask the question about why you are being charged for statements, disbursements, phone calls, printing or any other number of charges property managers will try to sneak into their agreements to squeeze more money out of the unsuspecting investor. These items are the cost of doing business and should just be included as part of the management fee you are already paying.

The number one rule when it comes to selecting property management is to select them based on their overall service offering and the VALUE you are getting for your money.

 

[Kaz111]

3 different agencies.
Metro Vic, regional Vic and really regional Vic. Multiply properties with each and each have a different rate (between 6-8%).

It's the service that counts.

Kaz

 

[Peter_Tersteeg]

Chatting to a PM friend, she charges 8%+GST and all the other costs. A bit more than many, but knowing how she manages her business I think it's worth it.

I know a PM in Perth that charges a flat 10% + GST for everything. No review fees, mail, letting, advertising, etc. All things considered I think this is actually quite a good deal (especially for Perth). He likes it as well because it's saving him costs (and paperwork) because he doesn't have to invoice all the other stuff.

 

[D.T.]

Chatting to a PM friend, she charges 8%+GST and all the other costs. A bit more than many, but knowing how she manages her business I think it's worth it.

I know a PM in Perth that charges a flat 10% + GST for everything. No review fees, mail, letting, advertising, etc. All things considered I think this is actually quite a good deal (especially for Perth). He likes it as well because it's saving him costs (and paperwork) because he doesn't have to invoice all the other stuff.

Which one is the Perth one please Peter? Will be renting my PPOR soon.

 

[BV]

I've just seen many companies charge more for the same service

Yes in theory it is the same service BUT... from my experience the service quality varies widely and the more expensive Real Estate Agents are not always the best ones.

In the old days I used to believe in giving my IP's to the local agents but there is no need for this anymore.

Today all listings and searches are done online and with phone and email we are just a few clicks away so the PM can be a fair distance away and still provide top quality service.

 

[BV]

Where do I begin?
Some may include:
How do they deal with no payments, late payments, part arrears, what processes they have in place?
Are any of the processes outsourced, like their payments to landlords?
How many property managers they have, do I have one point of contact, or I deal with different managers for maintenance issues, payments, etc...
I negotiate 7 to 14, if required to change managers, if they are so good why do they require 30 to 90 days?
I negotiate on fees, what's part of management fee what's not? Also, I prefer fixed renewal fee rather than a % or 1/2 weeks etc.. No flexibility for tenant or landlord there, just favours their fee structure!
How do they process and manage claims?
About advertising process, when they list during changes or listings, wether they display in their premises, what websites as I list them on the contract, how many photos I require, what fees, etc...
For fixed contract terms, I state I require flexibility, to never renew during unfavourable period like school holidays, so may be 9 or 3 or any 24 months etc...

Basically I go to great detail in research based from past issues I have had. So I then ask how they handle those unforseen issues that may arise! Usually my contracts have heaps of crossed and or modified lines....

MIW
Some very good points there and I also agree with your comment on the notice period.
If they are doing a good job, the investors would be queuing up to sign over the management of their IP's.
They wouldn't need any notice at all