How important is it to use a local PM? Eight Mile Plains, Brisbane.

My partner has just put a contract on a property that we will likely move into in the next 6 weeks. I'll be renting out my current PPOR and I'll need to engage a PM.

My house is in Eight Mile Plains and the house has 4 bedrooms, 3 bathrooms and it's likely to rent well for a family that want to be near RACQ, BTP or the multitude of temples, churches and other godly buildings within 100m of my door.

Ray White offices in the area have majority of the current rental listings but I want to make sure that the PM earns their cut by staying on top of any issues. I assume that someone local will find it much easier to manage the property and to be available to do inspections with potential renters.

Should I be looking for an agent within 10 minutes of this house? If so, does anyone have a local agent that they would vouch for?

 

I always use local agents. I suppose they know the area.

As I do most repairs myself i don't rely too heavily on a PM. They just collect the rent take a cut and pass the balance to me. Some PMs find this simple task too difficult.

When a PM stuffs up to often I give them the flick and move on to the next. Eventually you find one you're happy with.

Eight Mile Plains.....I stayed at a corner motel there, opposite a shopping centre. Up the road there's a huge Asian shopping complex. Think it's called Strawberry Hills. Everything is so big and open compared to Sydney. Nice area.

Being a Druitt boy I had to visit Logan Central and hang out in the carpark.

 

Did it have rooms by the hour? (Just like the Druitt Hilton?)

 

Can you please PM me the address and your contact details, I know a great PM that lives in the area.

 

Logan is a large council with variety of suburbs. My experience with PMs in this council convinces me to select a local PM only. I noticed especially some of the PMs located in better suburbs don't understand most aspects of managing a property in the less expensive suburbs. I m waiting to flick one of my current PM at the end of the term.
That's my 2 cents.

 

Not only are local agents important but agents that have multiple properties in an area are important.

Give @DiligentPM a buzz
They may be able to help

 

Should also verify what their vacancy rate is if you want to maximise your investment return.

 

As an active investor myself what matters to Martin and I is (1) how many IPs does my PM manage as even if a PM works locally it is no good to me if a PM has a huge caseload (2) is the PM experienced and reliable to ascertaining what the core maintenance matter is about to ensure I am not paying for something not related to the core matter and critically (3) does the PM follow through on presenting matters ( impossible if saddled with a huge case load)

 

Doesn't have to be 10mins away, but someone local for sure.

 

No, but the one up the road apparently...

 

Firstly, the property isn't in Logan. It's Brisbane shire
Sure, I can see and smell Logan from my window but if I pay my rates to BCC then I'm going to make sure that everyone knows that it's Brisbane!

Secondly, how many properties should a PM manage in their portfolio? What's considered a good number and what would be excessive?

Finally, what are people paying for their PM? Is it around 7-8% + the first week's rent for finding a tenant? I worked in RE sales a few years ago and if we gave the PM a lead then we would get the first week's rent as a kick-back. If I go directly to a PM without a referral, do they reduce this as they're not paying someone else for your details?

 

Rather use a non local PM who is excellent than a local one who is rubbish

 

Upto 150 managements is a good number.
It can vary for different states and areas that require more or less work though. Such as areas with high vacancies, evictions, houses over units etc.

The 1 weeks rent is a referral payment in business situations where the management is practically given to the PM.
The fees the customer pays won't be affected by this.

 

Pm me for a great PM around the corner from EMP. I have used them for multi IPs and they are very good .

 

Is that 150 IPs per PM?

 

Yes 150 per PM full time. That would be with someone else doing all of the admin stuff though.

The ideal amount could vary depending on location, age of properties, type of tenants etc.