Why are WA PM's sooo expensive
- Thread starter sammmeee
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How many PM's do you have and how many IP's do each PM manage for you?
Reviving an old thread. It seems they're even more expensive these days! These 3 year old posts mention 12-13% as being high, I just got quoted 16.5% in Mandurah and when asked to go lower, they wouldn't go lower than 14.5% all inclusive.
Oh and when I mentioned that it's still double what I get charged over east, they were at pains to point out that they only manage 200-300 rentals as opposed to 700-800 by the east coast agencies. And that apparently, they do a lot more work here in WA
especially with inspections... uh, what? They do 4 a year over east, just like in WA.
So basically they expect me to make up in fees what they lose in having less properties on their books.
Oh and when I mentioned that it's still double what I get charged over east, they were at pains to point out that they only manage 200-300 rentals as opposed to 700-800 by the east coast agencies. And that apparently, they do a lot more work here in WA
especially with inspections... uh, what? They do 4 a year over east, just like in WA.So basically they expect me to make up in fees what they lose in having less properties on their books.
Did they have a business model with 3 diff levels of service. Mine has an 8% plus fees for reports/inspections/blah blah then 12% for more inclusions then 16% for everything included
I find the middle option is the best if you think you won't be chafing tenants often.
I find the middle option is the best if you think you won't be chafing tenants often.
Reviving an old thread. It seems they're even more expensive these days! These 3 year old posts mention 12-13% as being high, I just got quoted 16.5% in Mandurah and when asked to go lower, they wouldn't go lower than 14.5% all inclusive.
Oh and when I mentioned that it's still double what I get charged over east, they were at pains to point out that they only manage 200-300 rentals as opposed to 700-800 by the east coast agencies. And that apparently, they do a lot more work here in WA
So basically they expect me to make up in fees what they lose in having less properties on their books.
I'll do it. 10%.
I'm not licenced or anything, but I'm sure we can work something out.
There really needs to be a PM-only licence that you can get in WA. Its ridiculous that no one can start a PM company without having a full blown REA licence.
Ah but if there is trouble won't they be worth every penny.
I'm sceptical considering the experiences I've had seeing PMs in court. Its scary that the management agreements I've seen have them charging $70/$80 per hour for court representation.
Just because they are expensive doesnt mean they are any good.From what i am reading,they all follow each others pricing like sheep.Dumb way to do business.
Yes. It's actually a lot easier doing it yourself. Phone call from PM - "tenant only agrees to pay for x amount. We can take them to court but as paperwork wasn't filled out properly from previous PM and I charge x an hour, it will be a drawn out process and you may only end up getting $50 - $100 back".
So maybe it IS because they have much fewer rentals? But then not all agencies over east have 800+ properties on their books, and yet they still charge low fees compared to WA.
I know PMs get paid more here but really I think it's a price fixing scam that is a bit if a rort. I have heard of a few lower fee mobs here but haven't investigated them. I really should seeing as it does impact on my bottom line.
Yes, they do get paid more here, but surely not double! I agree, rort.
Who are some of the lower priced ones? And do they manage all areas?
I see from my linked post from 7 years ago, (thanks Redwing for dredging up the past) that nothing much has changed during that time in this regard.
I'm not a betting man, but I reckon if someone actually tried pushing this issue through to some official enquiry, nothing would come of it and nothing could be actually legally pinned on anyone.
REIWA lawyers would easily be able to bat away any suggestion whatsoever that there was collusion, collusion by default, any price manipulation and no concrete evidence whatsoever that WA phone message passer-onerers (PMs) charge any more than their east coast counterparts.
Legally, I reckon this whole would fade away to a mere myth.
This thread seems to give the impression over east charges about 5.5% or 6% and WA companies comprehensively and regularly charge double or even more in some cases. I reckon you would fail miserably if you tried to escalate that "impression" into a proven fact in court.
I'm not a betting man, but I reckon if someone actually tried pushing this issue through to some official enquiry, nothing would come of it and nothing could be actually legally pinned on anyone.
REIWA lawyers would easily be able to bat away any suggestion whatsoever that there was collusion, collusion by default, any price manipulation and no concrete evidence whatsoever that WA phone message passer-onerers (PMs) charge any more than their east coast counterparts.
Legally, I reckon this whole would fade away to a mere myth.
This thread seems to give the impression over east charges about 5.5% or 6% and WA companies comprehensively and regularly charge double or even more in some cases. I reckon you would fail miserably if you tried to escalate that "impression" into a proven fact in court.
I have published my PM benchmarking in other recent post here. Out of this list I have chosen the small agency with owner PM, who decided to take my property at 10% + 1 wk rent + gst. I would say service is pretty basic, but tolerable so far or my expectations might be too high.
In my tender there was a big agency charging 10% flat, however their PM had 150+ properties each...
Do not want to protect the fees but according to my calculations it is pretty sweaty business to charge less than 10% and still deliver a good service. We are for the value here, price being just a component. Still wondering how interstate PM could be successful by charging less...
In my tender there was a big agency charging 10% flat, however their PM had 150+ properties each...
Do not want to protect the fees but according to my calculations it is pretty sweaty business to charge less than 10% and still deliver a good service. We are for the value here, price being just a component. Still wondering how interstate PM could be successful by charging less...
The others are simply profiteering because they can.
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