What is reasonable for PM fee?

I’m not sure what you pay in MEL for your PM fees but in SYD they are normally:
8.8% for the high fee chargers (if they can get away with it)
7.7% is pretty much standard
6.6% if you can negotiate a bit (this is what I pay for PMs with a couple of my properties)
5.5% if you have a lot of properties with one PM
After 5.5% you have lost their interest in doing any sort of good job for you – just not enough money in it for them.

Of course there are other fees like letting fees, statement fees, etc that I have not mentioned here.
 
I get charged 8.8% by my PM in Brisbane and I think it's a little steep. TBH, they do bend over backwards when things need to be done. They've recently announced that they'll do 6.6% if I give them 4 or more properties to manage, which is not a bad deal IMHO.
 
i pay 5.5% multiple properties ... still get really good service, but have had the same pm for 10 years and we have a good and friendly relationship.

doesn't hurt that we think alike, have similar sense of humour and don't mind a chin wag.
 
Anywhere between 6.5 to 8 Im paying.

what about for property inspection reports?

Some charge for the inspection and then another for the report to be written out. Total of around $220 or something. Seems like a lot to pay every 3 months.


Anyway i'm interviewing a couple more pms on thursday
 
Doesnt sound right Kim.......they are included in PM fee over east.

Here in WA I pay around $45.

WA pm's rip us all off compared to over east.
 
I get charged 8.8% by my PM in Brisbane and I think it's a little steep. TBH, they do bend over backwards when things need to be done. They've recently announced that they'll do 6.6% if I give them 4 or more properties to manage, which is not a bad deal IMHO.

I beleive the maximum an agency in QLD can charge is 7.5% of rent collected,. only if agent has not charged a letting fee.

If charged a letting fee, the maximum they can charge is 5% for the first year and 7.5% from then on.

They can charge for additional service on top of this % of rent collected.
 
PAMD Act - Regulations 2001

RESIDENTIAL PROPERTY

Part 2 Maximum commission on letting of residential property
(1) The maximum commission payable on the letting of residential property is—
(a) under a tenancy for more than 1 year—
(i) if more than 5 years—7.5% of the average annual
rental; or
(ii) if not more than 5 years—5% of the first year’s rental; or
(b) under a tenancy for not more than 1 year—
(i) if more than 3 weeks—1 week’s rental; or
(ii) if more than 2 weeks and not more than 3 weeks—75% of 1 week’s rental; or
(iii) if not more than 2 weeks—50% of 1 week’s rental.

Part 3 Maximum commission on collection of rents ofresidential property
(1) The maximum commission payable on the collection of rents from residential property is—
(a) for a tenancy for holiday purposes—
(i) if the tenancy is not more than 3 months—12% of the rent collected; or
(ii) if the tenancy is more than 3 months—9% of the rent collected; or
(b) for a tenancy for residential purposes—
(i) if commission has not been paid on the letting of the property under section 32—7.5% of the rental collected; or
(ii) if commission has been paid on the letting of the property under section 32—5% of the rent collected for the first year and 7.5% from then on.
(2) In addition to the amount mentioned in subsection (1), if the
licensee is required to arrange and supervise repairs and
replacements for the property, the licensee is also entitled to
the further amounts as agreed in writing between the parties.
 
lura,
you lost me on your last post,.,is this not what i said earlier?
I commented as I did not understand how an agent can charge 8.8% in QLD.
 
Ray white in Narrabri NSW wanted to charge me 15% plus 110% of first weeks rent and $88 per hour to organize maintenance and $88 per hour for tribunal issues.

Problem is the other real estates in the town would not take on any more rentals which left me with a large problem.
I was lucky another real estate approached me at the end of the reno and the problem was solved.
This is the price they are charging other customers as well as I received by accident someones agency agreement via email.
 
In relation to the 8.8% fee, if you double check your property managers management agreement you sign, you will see its actually comprised of 2 separate fees under the one banner shown on owners statement.

The 2 fees being -

a. Rent Collect Commission (5% of rent collected plus GST)
b. Management Fee (3% of rent collected plus GST)

Hope this helps
 
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