NT 12 percent PM fees?!

Just got quoted 12% PM fees, all inclusive except for advertising on RE.com ($180).

It's from a very reputable PM here in Darwin.

Projected rent is around $500 per week.

Seems a little high though?

I am about to vote with my wallet (go elsewhere) but before I do...could this be justified? Maybe they're awesome and worth it?

Thoughts?

 

depends on the area and state, some areas gouge and its all across the board with no justifiable reason

 

In Perth I would happily pay 12% all inclusive with only extra advertising. Provided it's a good pm.

 

It depends on a lot of things, including Rent amount. There's a big difference between a $350/week property vs a $1,000/week.
How much work is it involved? Solar, water, multiple household?

Dont understand the Advertising Fee tho... how often is it charged, and AFAIK, RE.com only charge around $30 for a Standard Ad.
Not many Rentals go for Premium Ads unless it's a premium property.

 

Projected rent is around $500 per week.

The advertising fee is only charged when the house goes up on re.com.

 

Not in my experience - agents pay a hefty monthly subscription as well as a per site fee & premium placement if that's the package they have signed up to receive.

 

Seems high. Compare other agents with suitable facilities, skills and experience. Then give feedback. And choose.

As owners we need to be mindful that services come at a cost. However a PM fee is not a fixed charge. Its a% of rent and if rents are rising so is their fee. But they cant double down. Without it imapcted THEIR business. They should be focussing on lifting the tenant rent.

 

I've done a bit more research and 10 percent (+GST) seems to be the going rate up here (Which still seems high) but I guess it is what it is.

I can get it all a bit cheaper buy going through a larger agent with many PM's and a large rent roll, but I suspect the drop in service wouldn't make up for the $5-$10 I'd save each week. Have heard horror stories from both tenants and landlords...

 

I pay a higher rate in Perth for mine, but I have a great PM and rarely have any issues. They are also very responsive and there's a good relationship built over a number of years.

What do they say about building a good team...?