your PM increased its fees

[russellpeter]

Just finished a Blog Post about what im seeing in the market from a Principal of a property management agency and the information i am being advised to do to increase my fees and gain more business.

blog post here

Please fill in the poll if you have and fee added from your Pm in the past 12 months.

 

[yahoo]

My agent puts fees up every two years, and even tried to sneak in a clause for a 10% rise every two years. I can understand some fees increasing but the management fee should not.

 

[Scott No Mates]

All things being equal (ie property is well maintained, all issues resolved promptly, regular increases in line with market), why is there a need for an agent to increase their fees? Rent goes up/agent's take increases.

Unless of course the government moves the goal posts eg. compulsory professional indemnity, greater cpd/training requirements, increases to workers comp/business insurance etc.

 

[newbietoinvstng]

All things being equal (ie property is well maintained, all issues resolved promptly, regular increases in line with market), why is there a need for an agent to increase their fees? Rent goes up/agent's take increases.

Unless of course the government moves the goal posts eg. compulsory professional indemnity, greater cpd/training requirements, increases to workers comp/business insurance etc.

I think in Russel's case he charges flat fees, but that's, of course, his chosen business model and not the most common one.

 

[russellpeter]

I think in Russel's case he charges flat fees, but that's, of course, his chosen business model and not the most common one.

I set up My Model because i believe this is the right way to charge for property management services.

I made this post to see whats happening in the current market. the bigger my business grows the more people that are email/calling me with there services to try and get my business and they best way they are approaching me is to say they are helping agents get higher management fees and gross profit by doing the above.

I think agencies will slowly start to increase there fees starting next year. marketing cost to list rentals on realestate.com.au have double over night and we are finding that good Pm are now starting at $50K

will not affect Pure rentals business as i did my research before opening and know the numbers better than most agencies when it comes to fees and the bottom line of running things successfully.

 

[Futurefund]

Hmmm, I probably shouldn't vote since Russell's agency manages one of my IPs, but at least I'll put in a plug for his services - outstanding and highly recommended

 

[Angel]

Hi Russell, what do you mean by "good PM are now starting at $50K" ?

 

[russellpeter]

Hi Russell, what do you mean by "good PM are now starting at $50K" ?

when I opened Pure Rentals the average cost for a Full time Pm in Brisbane was $40 to $45K

now its starting at $50K

you can still hire PM at 40K but most will only have 6 to 12 month experience.

we like to hire 2 years + with the average experience per Pm would currently be closer to 8 years.

in saying that some of the best Pm i have worked with had no Property management experience but 10 years + in admin and picking up the PM skills with the right training was easy for them.

 

[D.T.]

Yea usually having the right "approach" is better than the "skill" itself.

 

[russellpeter]

Yea usually having the right "approach" is better than the "skill" itself.

Agree as along as you have a good training and support systems.

we offer them a career path with a clear goals and training to open there Pure rentals office. helps us get better qualified staff who can see the big picture

 

[russellpeter]

other ways to increase fees.

other ways to increase fees.

https://www.youtube.com/watch?v=yOgEpikOnS8

 

[redwing]

Darrenhunter, no need to say any more

 

[citystar]

I've been expecting a slight increase for a while now however they haven't occurred even after five years with the same property management company. However they are consistently pushing the rents up a little bit here and there whenever possible so this all affects their income stream when they take their commissions. I'm fine with this business model, they earn more when I earn more.