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Do you charge the same Agent Comm % for the same owner for different properties?

Discussion in 'Property Management' started by fullylucky, 25th Jul, 2016.

  1. fullylucky

    fullylucky Well-Known Member

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    27th Jun, 2015
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    Location:
    QLD
    Say you hypothetically manage multiple properties for the same owner. (e.g. owner has multiple units in your letting pool.)

    Do you normally or always charge them the same commission?
    Also lease renew fee waived (no letting free for renewing lease with same tenants, free for owner.) for one property waived for all his/her properties?

    Or do most PMs negotiate on a property by property case by case basis?

    And once you waive the lease renew fee once do you forever waive it for them for life?
     
    Fiona likes this.
  2. Lil Skater

    Lil Skater Well-Known Member Business Member

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    Location:
    Melbourne
    Always on a case by case basis.

    Most multiple properties are charged at the same % per property, but I have a few where one property is X% and another completely different. Usually because property one is (for instance) $500pw and the other $1,000pw.

    I'm intrigued FL, are you planning to open your own agency? You've been asking a lot of interesting questions lately..
     
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  3. fullylucky

    fullylucky Well-Known Member

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    QLD
    Thanks Skater, this makes sense. So most would be the same coz it's in the same town house complex similar properties. But when it's like rent $1000, or $1200 can't expect them to do the same high %.

    No, I'm not planning to open my own agency. I'm not a licenced PM.

    What about lease renew fee? I understand that because owners don't wanna lose lease renew fee they often push PM like yourself to do 12 months lease instead of 6 months (skip one lease renew fee) which is not advantageous for you (you can't kick tenants / change tenants as easy) so some PMs offer "free" lease renew (collect the standard agent comm %) but instead ask for a higher comm? If you offer free lease renew you always offer free lease renew for life for that owner for all properties?
     
  4. Lil Skater

    Lil Skater Well-Known Member Business Member

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    Most are in a different complex, generally speaking. But usually it's just easier for all involved to do the same % across the board for the one owner.

    Depends on the agency whether they will negotiate on the % based on the rent. Most agencies will, but some will charge the same % regardless of the rent per week.

    Regarding the lease renewal fee, this is really subjective to each individual agency. Some will charge for everything such as lease renewal fees, statement fees, postage, inspections.. the list goes on. Some won't charge any of that or only some of that. The fee structure is individual to each agency, as are what each agency would negotiate on.

    I don't charge a lease renewal fee at all, I see it as part of the management. If I did however charge a letting fee and remove it for a particular client they may get it free for forever, or it be added in if/when the agency reviews their fees. Again, comes down to each agency and their structure.
     
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  5. Owlet

    Owlet Well-Known Member

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    Location:
    VIC
    In addition to negotiating same commissions for multiple properties with the same PM or agency you can also negotiate across a brand.