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Management Agreement - What do you ensure is in and is out?

Discussion in 'Property Management' started by mja, 3rd Nov, 2015.

  1. mja

    mja Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    176
    Location:
    Sydney
    I'm contemplating moving one of my properties from one property management mob to another, mainly because the property manager I've been using for the last 8 years for this one property is incredibly awesome and this isn't the first time I've moved my business when she's moved between agencies.

    Anyway, when signing the initial agreement, what do you haggle with the property manager on, apart from the obvious total management fee?

    My inclusions:

    * Happy to pay 7%-8% plus GST for great service
    * No fee on renegotiating leases
    * Any expenses > $0, let me know, but approval for up to $100
    * Notice to terminate agreement: 30 days (but considering dropping this to 1 day)
     
  2. D.T.

    D.T. Adelaide Property Manager Business Member

    Joined:
    13th Jun, 2015
    Posts:
    5,596
    Location:
    Adelaide, SA
    Which state is the property in? Each state has different structures.

    What other fees are on their list? Stuff like monthly admin fees, annual financial statement fees, routine inspection fees can add another percentage point.

    The expenses part is usually a personal decision, based on how much of a hands on / off experience you want.
     
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  3. Xenia

    Xenia Adelaide Property Manager Business Member

    Joined:
    21st Jun, 2015
    Posts:
    2,347
    Location:
    4/136 The Parade Norwood, South Australia
    Do you have preferred trades people or can we use the agency ones?
    Who is your property insured with?
    Do you have landlords insurance?
    Do you want your bills to be redirected to the agency so that they are paid by the agency?
    Are pets allowed on the property - does the agency consider applications with pets or not?
    Who would the agency call in case of an emergency if they are not able to get you?
    Is all maintenance up-to-date? Including smoke alarms.
    Who are the strata manages if there are any what are your bank account details?

    The above is the information that I would be looking for with a new management agreement .
     
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  4. mja

    mja Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    176
    Location:
    Sydney
    In Queensland.

    I like how you wrote it from the property manager's perspective. Thanks for your input!
     
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