Looking for a property manager at the moment. Have a few questions: 1. What is the typically the property management rates in NSW. I"ve called up a few places and they range between 4-8%. Thats a big difference! 2. What items can be striked out on the management agreement contract or lowered without being unreasonable. Things like (but not limited to): a. Letting fee (is this typically one week rent regardless of whether the rent is $200 or $800 per week ?) b. tribunal costs c. notice period to terminate management agency contract d. anything else? 3. If i continue with the agent i brought the property with (vendor agent)... would there be a conflict of interest? Is it reasonable to negotiate to waive the letting fee of the first tennant?
If you're going to do that, you may as well put them all in excel and sort low to high right? What qualitive comparison have you done? Don't be surprised if they say No Thanks if you do this. There's not any advantage or disadvantage to using the same agency that sold the property. No conflict either. If you've determined them to be the best agency for your needs then go for it, otherwise go with another.
Thanks Interesting. A few years ago I asked a similar question on a property forum, I cant remember which ones and it was suggested not to take the standard contract as it stands. A lot of the items can be amended. I was under the impression this is the norm. Is this not?
Don't see why a conflict of interest. Buying and managing are very different things. However, the agent who sold me my place was very above board (after getting sick of dodgy REA's up to that point), and in appreciation of him being above board, I consequently asked if they would manage my property. That was a big mistake. The property managers have nothing to do with the selling agent and turned out to be atrociously incompetent and very very costly. I suggest you get some recommendations from people who actually use property managers instead of going in essentially blindly with someone just because it is (an unrelated) part of the same business. I don't agree with this. For one thing, I can not for the life of me comprehend why many REA's charge the same full weeks rental for re-signing as they do when finding a new tenant. How can it reasonably be justified to pay a full weeks rent for taking a piece of paper to sign? I negotiated out of this with my agent, but he also was very eager to please, so I am hoping that also means he will actually do his best to do a good job (unlike the last one). In any case, I think you should at least check, and ask if there is any room to negotiate on the ones that seem unreasonable. Especially in Sydney where it is very competitive.
Because the agencies who don't just turnover/churn tenants every year to get their letting fee again. Its better to maintain long term relationships as this means smoother cashflow for the investor and less maintenance cost (most issues occur during moving in or out). If he was easy to negotiate on that, don't be surprised that tenants will also find him easy to negotiate with. You don't want a walk over pm.
Seems that charging a re-signing fee is so that they don't just become dodgy and find ways to get rid of tenants to have to re-sign every year?
Hi! Just a quick question I had regarding management fees. The PM managing my new IP in Maitland asks for 7.7% of water usage costs as an additional fee ontop of the weekly 7.7%. Is this normal ? All the PMs which I have used in Sydney for my Sydney IP do not charge a percentage on the water usage. I know it may only turn out to be a few dollars/week but I am just curious to see if any one else has experienced this? Cheers
I've noticed quite a few do this because the management contract says % of money received, rather than of rent received. I don't agree with it at all. At the same time, it'll not be much. I'd rather have a good PM that charged it than a dud one that didn't, if that makes sense?
Yes it make sense. Thank you. Not sure if they are any 'good' though. I'll just have to wait and see. It's been vacant in their hands for 3 weeks and only heard from them once.
No! This is not normal and they shouldn't be making money off bills that the tenant or yourself is paying. In all my time, I've never even heard of this particular one!
