Agency charging $350 per month

Can anyone recommend a low rate property agency in Sydney?

I have a brand new flat in cremorne renting to execs for $1200 per week. I've rarely used agents in my 20 year investing career and never had a serious problem. My tenants love that I treat them like valued clients, & give them gifts, and this reduces my vacancy rates to almost nothing.

Anyway for a few reasons I've had my new flat managed by an ageny, with monthly rent of $5220 and management fees of $344.

I said to the agency I did not think what they do (simply pay strata, rate and water/book keeping) is worth $344 a month, and I requested a reduction.

I hinted I'd be happy to pay similar to an average landlord. Something around $150 per month....they came back and said "their computer system cannot reduce their fee to anything below 5%", making me even more angry (blame the computer!)

I know from my 20 years' experience that flats in Sydney, especially new ones, will cause very little repair requests. Like, zero. Everything's new. As for the few items on the "defects" list to be rectified by the builder, (AC) I'm on top of that, in direct contact with the management, and the agency doesn't lift a finger. In other words, I don't need them at all.

Perhaps I should just get rid of them now....

 

I think in your case you might be better off self managing.

Its pretty rare that I say that; trust me I've seen all sorts.

 

5.5% inc GST is about the norm for Sydney, some will do 4.4% if you really push but they are generally those desperate for work

 

Mosman, Cremore, Double Pay.... All the suburbs where reality differs.
Sounds on the costly side.
Time to shop around. Do they specialise in find high end tenants ?? I knew one at Woolloomooloo who did high end execs and they bought in huge rents but charged extra vs your typical agents. Well worth it however. I mean people like Murdoch, Lowy etc family....Paying three times the norm. But high end expectations....eg they need a mooring for a yacht. A BIG one. Cost wasnt the issue - A huge mooring close to the unit.

High end agents will sort the lease issues and deal with often demanding people. Be there with keys on weekend or assist tradies after hours and things like that. Concierge services almost. $1200 a week perhaps not.

 

Can you confirm whether you're just looking for someone to manage the financials while you take care of the clients or are you looking for someone to manage short stay rentals? I'm just a bit confused by your post before I can make any recommendations.

 

We've found 5.5% pretty standard for traditional agencies (standard residential leases).

So DIY or look for a specialist property manager. Many of these work for themselves so you need to look at what experience they have, systems for trust accounting, holidays and so on.

I recently did some research on this and there was one that was lots cheaper than others - 'different' ... Are they any good? No idea! Sounded too good to be true.

If you wanted a GOOD property manager in that area I would have recommended Pamela Thomson but I think she's moved up and is no longer hands on.

 

I have also self managed in the past with no issues. Thinking about doing it again as the service from PMs is generally average to woeful in my experience.