Hi all I'm considering buying a commercial IP. I have a few resi that have served me well and are continuing to do so. Looking at a few options I have I'm calculating my costs. What does everyone usually pay their agents for commercial leasing and management in Victoria?? Leasing- X1 month Advert- $660 Management %? Any costs for invoicing tenant or disbursements? Thanks in advance
Speaking from a WA view, generally will be the same across the states. Fee's are dependent on gross income of the property (rent + outgoings + GST) over here we go from 3% up to about 7.5% Sundries I have seen up to $80 for multiple properties, mostly about $20/month The advantage of a commercial property is unless retail, the tenant wears the management fee's and sundries fee's Leasing fee's again dependent on the rent negotiated ours sit around 10% Marketing is charged at cost incurred to the agency The other fee's they may charge are for inspections, reconciliations, lease extensions and rent reviews.
For NSW at least, rates go down as low as 3% but up to 8% + gst for management. Based on gross rent (ie rent plus any outgoings collected). Letting fees 10-11% of the first year rent, some will hit you with advertising.
Be also concerned about any lease that may be existing with any purchase as a poor lease will cost you $$$.
Hi Elslan, I'm not 100% sure about Victoria, but in NSW the following is the norm: Management - Anywhere from 1% for large properties to 5% for smaller properties Leasing Fee - Minimum of 10% of the gross rental, increasing to anywhere up to 15% and beyond (generally the longer the lease, the higher the leasing fee) Marketing - Whatever the cost is to the agency. Don't skimp on marketing if there are a lot of competing properties. Be sure to use good photos - they make a big difference For management, choose the agent you think is most competent. This is not always the largest agency or the smallest agency. For leasing, you don't have to use your managing agent. Some owners give open agreements to every agent in the area, but this just means that none of the agents are really motivated to work on the property. You would be best to appoint 1 (or sometimes 2, if it's a large property) agents to market your property, and ensure they offer a conjunction to all other agents. This means your agent is motivated to work on it, but doesn't stop other agents from introducing tenants and being paid part of a fee as well. For leasing, generally choose the agency completing the largest number of transactions in the area will yield the best result. Hope this helps John
