Why are WA PM's sooo expensive

[sammmeee]

Heres the deal..

Went to 5 PM's in Armadale WA and 1 in Kelmscott WA

Funnilly enough they all charge the exact same rates.

9.35 %

PLUS
2 Weeks rent + GST
Lease renewal: $55
Initial condition report: $165
Bond Inspection: $121
Inspections: $49.50 per inspection
Postage: 6.60 per month

Then there are "other" charges
Court attendance; $66 per hour
Tenant Enquiry Fee; 13.20 Per application
Annual summary: 37.50
Water meter reading; 14.30

OR
12% (which turns out cheaper than above)

It smells of collusion to me. Mind you they all change the same percentage 9.35 but differ a bit on the other costs.(not by much).

What are they doing differently than the eastern states PM's..
Its going to cost nearly 2-3K a year just on PM.

Any suggestions, ideas or comments apprecieated!

 

[skater]

Any suggestions,!

Buy in a different State.

 

[mja]

Start up a property management agency in those towns and charge 6% PM fees, then rape and pillage all the other PMs rent rolls.

 

[skater]

Start up a property management agency in those towns and charge 6% PM fees, then rape and pillage all the other PMs rent rolls.

Then when you've done that, sell the Business for a nice profit.

 

[Rixter]

What are they doing differently than the eastern states PM's..

Besides charging more - nothing!

 

[skater]

Besides charging more - nothing!

And I bet there are some that do less.

 

[Rixter]

And I bet there are some that do less.

Down Rockingham, Warnbro through to Mandurah way I heard they were charging obscene fees up to 13%. A lot of newbie mum & dad investors as well as eastern staters getting ripped during boom time.

 

[Cue]

Expensive PM

Redcliffe QLD want to charge me, ( in red).
9.35 % (9.3%)

PLUS
(1 ) 2 Weeks rent + GST
Lease renewal: $55 $66Initial condition report: $165
Bond Inspection: $121 Nil
Inspections: $49.50 per inspection Nil
Postage: 6.60 per month $5.5

Then there are "other" charges
Court attendance; $66 per hour $80Tenant Enquiry Fee; 13.20 Per application
Annual summary: 37.50 $35
Water meter reading; 14.30 Nil

3 PM have similar rates. Helps keep it negatively geared.

 

[INVSTOR]

I met a PM recently who offered me 8% plus extra's if I took two properties to her (Northern Suburbs) She did an appraisal for me $400 - 430/week on a property worth about $550,000.

Eek - That's why Dazz is a bit anti this game?!?

I met some seniour high school kids from Perth about 16 years ago. They told me all their parents owned investment properties. They said they didn't make much income from it because a lot of people were doing it, they were all high income earners and were trying to reduce their tax. Maybe that's why the fee's are so high, and the rents are so low?

Other states, other types of investments are looking good to me.

 

[Dazz]

Eek - That's why Dazz is a bit anti this game?!?

Nah mate - you've got pegged all wrong. I love paying PM fees, the higher the better cos as they say, you always get what you pay for.

The more I pay, the more tax deduction, it's fantastic, really gets the negative gearing cranked up.

You've gotta remember the PMs in Perth are all multi-millionaires and their husbands all own gold and iron ore mines, so you have to pay them heaps just to get out of bed.

Of course, once they are outta bed, one can be assured of a nice surly stroppy attitude, where everything is too much work and you'll be guaranteed of getting palmed off with little to no service.

....but then, that's why I always look at the big picture. It's so much more interesting than the irrelevant details of income and fees.

 

[sammmeee]

Funnily enough I had thought of starting my own business. Except in WA you have to be connected to an agent. Definitely worth a look if there is money to be made.

 

[mja]

Funnily enough I had thought of starting my own business. Except in WA you have to be connected to an agent. Definitely worth a look if there is money to be made.

What do you mean "connected to an agent"? You would *be* the agent.

 

[sammmeee]

Sorry connected to a licensed real estate agency..

A 5 day full time course is all it takes to be a registered PM and only $650...but still need to be attached to a real estate agency??..or maybe I have read something wrong there..

Would be great if a 5 day course is all it takes? Kind of scary to think that we hand over keys to people that have done a course for 5 days and then can be registered property managers?

 

[redwing]

I recall Dazz posting on this sometime ago about having to hold a Triennial Certificate as well as being licenced, so had a quick look.

Somersoft search result

REBA also hold you to a Continuing Professional Development (CPD) scheme where you have to pick up 10 points each year

Here's another, older post with WA Property Manager prices listed.

 

[sammmeee]

Thanks for that redwing. Gained more info from those posts than countless hours of research. I think no matter what at least a years experience working as or with a pm to get experience. Maybe a 2 year turn around until a genuine start up.
Watch this space.

 

[redwing]

Having properties in WA, QLD and NSW I can say that WA Property Managers need some pricing competition....bring it on

 

[Aaron Sice]

it's WA - what else did you expect?

anyone else want to argue against collusion-by-default....?

 

[redwing]

collusion

n. where two persons (or business entities through their officers or other employees) enter into a deceitful agreement, usually secret, to defraud and/or gain an unfair advantage over a third party, competitors, consumers or those with whom they are negotiating. Collusion can include secret price or wage fixing, secret rebates, or pretending to be independent of each other when actually conspiring together for their joint ends. It can range from small-town shopkeepers or heirs to a grandma's estate, to gigantic electronics companies or big league baseball team owners.

See also: fraud

 

[Aaron Sice]

collusion - by - default, not collusion.

as is, i know what so-and-so is charging, so i'll match it.

i know what so-and-so+1 is charging, so i'll match it too.

and so-on and so-forth. there's no meet up in the international room at Burswood to conspire on how to rip off joe public - that's collusion and fraud.

 

[buzzlightyear]

collusion - by - default, not collusion.

as is, i know what so-and-so is charging, so i'll match it.

i know what so-and-so+1 is charging, so i'll match it too.

and so-on and so-forth. there's no meet up in the international room at Burswood to conspire on how to rip off joe public - that's collusion and fraud.

Ahhh, like petrol prices and interest rates. I get it!