Join Australia's most dynamic and respected property investment community

Melbourne property management agreement rules

Discussion in 'Property Management' started by LATS, 8th Jul, 2015.

  1. LATS

    LATS Active Member

    Joined:
    21st Jun, 2015
    Posts:
    35
    Location:
    Sydney
    Hi all,
    Looking for some advice from those based in Mel or have property managers in Mel. Sounds like dumb questions and petty but not familiar with management practice in other states so thought I'd double check. Thanks!

    I have a existing property managed by this agency, which the authority paper /management agreement says $0 for adv, photo/internet, for lease board, and $0 for lease renewal fee. Recently bought another one and in the draft agreement given to me they've now added some fees to these sections. (in summary, property 1 - $0; property 2 - $fees. Same agency).

    1. Which one is the normal practice for Mel?
    2. what amounts in these two sections should I expect?
     
  2. xanh

    xanh Active Member

    Joined:
    27th Jun, 2015
    Posts:
    31
    Location:
    Melbourne
    I've paid about $200 for advertising and the release fee varies a bit - sometimes nothing and sometimes $50 or so.

    If I were you and I was giving them a second property to manage, I'd be pushing for the second IP to get the same fees as the first.
     
  3. LATS

    LATS Active Member

    Joined:
    21st Jun, 2015
    Posts:
    35
    Location:
    Sydney
    And it's not the amount I'm being picky about because Syd agents charges much higher. It's just that I've got one with them already why vary my conditions if I'm going to give them another one right? Odd....
     
  4. Kirk Stafford

    Kirk Stafford Member

    Joined:
    23rd Jul, 2015
    Posts:
    8
    Location:
    Melbourne. Vic
    Hi Lats, in Vic all fees are negotiable - I'd be going back to the agency and having a chat to them about what is fair for both parties and both properties - some fees have to go up to reflect the increases in running costs (PM wages) and out of pockets (advertising etc) of the agency so it'll be a bit of give and take to get to a figure which both of you can live with.
     
    LATS and Lil Skater like this.
  5. S.T

    S.T Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    428
    Location:
    I'm not selling anything
    Tell them to match what you pay for property 1, simple.
     
  6. Lil Skater

    Lil Skater Well-Known Member Business Member

    Joined:
    18th Jun, 2015
    Posts:
    385
    Location:
    Melbourne
    It's not unusual for companies to increase their fees, but no harm negotiating and asking them to match property #1. Most will.
     
  7. LATS

    LATS Active Member

    Joined:
    21st Jun, 2015
    Posts:
    35
    Location:
    Sydney
    Thanks all. Good to know.
    I suppose I assumed it was going to be the same given it was only 3 months ago that I gave them one to manage.

    So when the paperwork arrived with different fees I emailed it back with correction - please amend this and that pe my existing agency with you.
    Email response received back was 'unfortunately fees have increased and we have to recoup out cost. Moving forward these fees will stand.'

    It's at this point that I seek fellow PCers comments.

    Don't get me wrong - the management % is still the same. It's just the additional adv & renewal fees I thought 'what the..'. Understand these are out pocket fees which they try to recoup and they are not huge amount. I'm actually willing and quite happy to pay it - but consistency? Again, it was 3 months ago I signed the last one with them.
     
  8. D.T.

    D.T. Adelaide Property Manager Business Member

    Joined:
    13th Jun, 2015
    Posts:
    5,595
    Location:
    Adelaide, SA
    I wouldn't argue over what will be $200 a year or whatever it is.

    Is the service / communication / handling of property matters good?
    Yes - Pay it and be glad your other one is discounted
    No - Move both properties elsewhere
     
    Last edited: 23rd Jul, 2015
    Lil Skater likes this.