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I think im being ripped off by this PM

Discussion in 'Property Management' started by Darlinghurst Boy, 31st Mar, 2016.

  1. Darlinghurst Boy

    Darlinghurst Boy Well-Known Member

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    If some of you could help me with this...i would apprecuate it

    I believe im paying very high management fees ...

    Here is my invoice

    $1360 rent collected for the Month

    Now minus the
    Management fee-$95.20
    Postage and Sundries- $5
    GST on these -$10.02

    It seems to be more than 6% ????
     
  2. JacM

    JacM VIC Buyer's Agent Business Member

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    Hi @Darlinghurst Boy

    What is it about the fees mentioned above that makes you feel you're being ripped off? Those figures look about standard to me. Any lower and they'd be doing it for free.
     
    Shazi likes this.
  3. Darlinghurst Boy

    Darlinghurst Boy Well-Known Member

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    Why am i paying postage ?
    The invoice is emailed !
     
  4. Tony Fleming

    Tony Fleming Well-Known Member Business Member

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    My PM sends me smoke signals. Best $60 I save all year.
     
    joel, JenW, Elives and 3 others like this.
  5. ADLInvestor

    ADLInvestor Well-Known Member

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    There's so many missing facts in this.

    What % are you meant to be paying? Do you a postage fee in your management agreement? Why don't you get your statements emailed to you, and save $5 and the trees?

    Simple calculation shows that $95.20 is 7% of 1360. I would have said 7% is on the low scale? I pay 8.8%, i'd love 7%!
     
  6. markson

    markson Well-Known Member

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    What was the management fee in your contract?

    As above you must be on 7% plus gst. Argue the postage fees which they will probably scrap for you
     
  7. Darlinghurst Boy

    Darlinghurst Boy Well-Known Member

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    Im pretty sure it sayts 6%..but does the calculations i gave u above seem normal?

    Does everyone pay this?
     
  8. Coota9

    Coota9 Well-Known Member Premium Member

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    2 Properties in Brisbane I pay 8.8% including GST
     
  9. JacM

    JacM VIC Buyer's Agent Business Member

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    circa 6% + gst is around normal, yes, and cheap in many markets.

    It says postage and sundries. Sundries could be anything but is most likely a rent distribution fee to activate the EFT transfer. Not an unsual fee as businesses normally have to pay per EFT transfer over more than a certain number of EFTs.
     
  10. Coota9

    Coota9 Well-Known Member Premium Member

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  11. ashimashi

    ashimashi Well-Known Member

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    Cant be worse then quote i received in regards to a property up in Brisbane, i would also love 6%, heck id probably love me a 7% o_O
     
    legallyblonde likes this.
  12. Scott No Mates

    Scott No Mates Well-Known Member

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    "Postage & sundries" is the replacement of the "Tea Ladies' Retirement Fund" and your contributions are put towards the retirement of the secretary & general dog's body.
     
    pinewood likes this.
  13. Hodor

    Hodor Well-Known Member

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    I pay what I signed in the agreement. Look it up and confirm the % you agreed to, if it is 7% then it is right, if it is 6% then you need to get it amended. What is a reasonable fee depends on where the property is, a good property manager is worth the extra 1%.

    It says "Postage and Sundries" so it might be applicable, still I would question this given they are been emailed to you.
     
  14. S.T

    S.T Well-Known Member

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    try and negotiate so you only pay GST of around 4%
     
  15. Nick Valsamis

    Nick Valsamis Well-Known Member

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    Because you agreed to do so on your management agreement.

    But you will probably find that it is actually listed as the administration fee on your agreement.
     
  16. EN710

    EN710 Well-Known Member

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    Not always.

    I got charged wrong % before. And postage and sundries that are clearly $0 in the management contract.
     
    Team Davo, Shazi and Perthguy like this.
  17. pinewood

    pinewood Well-Known Member

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    I'm having a bad day and this really made me laugh! :D
     
    Azazel likes this.
  18. Vassago

    Vassago Active Member

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    My most expensive is 13.75% inc GST :(
     
    TMNT likes this.
  19. sanj

    sanj Well-Known Member

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    o_O
     
  20. Nick Valsamis

    Nick Valsamis Well-Known Member

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    Of course there could be mistakes.

    But as we don't have knowledge of what he agreed to, I could only assume it was correct and answered his question as to why he would be charged for postage and sundries.