NSW 7% + GST and $5.50/month admin fees - too much these days?

We've got a unit in Hornsby area managed by the same agency for over 15 years. Rent is $400/week.

When we signed up back then it was at 7% + GST and $5.50/month admin fees. Is this too much these days? I believe most agents around are charging 5% + GST and no admin/postage fees as postage has gone away so many years ago.

Worth trying to negotiate with them to more reasonable rates? What would you do? Thanks

 

I think 7% is common in NSW, but that $5.50pm is just petty. I would negotiate that out.

 

In WA I wish for such low rates.
Cheapest I have seen 6% plus GST plus a few other costs

 

Price is what you pay, value is what you get.

Are they doing a good job? That's the key question here.

The annualised difference in the rates you have mentioned is c.$450 or a weeks rent.

 

They are doing their job, but I wouldn't say it's hard as our tenant has been there forever and always pays their rent on time so our tenant hasn't caused any problems for us or the agent so far.

 

So save even more money and manage it yourself?

 

I have never paid anymore than 5% + gst. Had agents try and charge me more on the promise that what they do is better than the next guy.

 

I currently pay 4% + GST in Blacktown. I know a few friends who are also on the same in Castle Hill etc with other Property Managers.

I think 5% would be reasonable.

That being said, I do pay 7% + GST in QLD and 8% in Mildura - so .. the rate certainly isn't consistent across the country.

 

That’s about what I pay.

 

We have seen 6.6% incl GST+ other expenses in SA or all inclusive 8.8%, WA is 6.6%+other extras or all inclusive 9.9% (no additional fees)

 

I've never paid more than 5% + GST in Sydney.

 

Does anyone else spend more on coffees a week then they pay their PM?

 

In WA struggling to find anything <9% and all of them seem to have 2 weeks letting fee.
Had to REALLY dig to find 7% + GST + 1 week letting, then all the other fees on top like listing and reports etc.

 

Why are the fees in WA nearly double (2 weeks letting) everywhere else? Are there not enough agents in WA or is there some other reason for the price gouging?

 

Wow 2 weeks rent for letting fee is a bit of a ripper, why are WA PMs making themselves feel too special when compared with other states.

 

Wonder if there is just simply less work, or the rents are cheaper, or something else, so they have to charge more just to trade etc?

 

Pffff try $150 to a weeks rent just for a lease renewal in Perth.

Oh and a rent review. A few links to Real Estate com for similar properties

 

I’ve paid 6% (+ GST) with 2 weeks rent for letting. This property was in melbourne and those were the only fees I ever paid i.e no admin, re-letting, advertising, EOFY statement etc etc. From my side, it was super simple. I did think the 2 weeks letting fee was a little on the high side, but didn’t question it, hoping that my tenants wouldn’t turn over too many times. Anyway, Covid hits last year and wow… that’s when I saw the value of my PM.
Moral of the story- to me, fees don’t really matter when the PM does a stellar job. However, I do start to question their value when they are not performing to my expectations.

 

Thank you for sharing your experience.

 

Hi, I just bought in Yanchep - 2 years late, hopefully there’s still some growth left

Did you have any recommendations for property managers in the area (as I think you also bought in Yanchep a few years ago)

The current one doesn’t seem to be doing a good job…