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Please rate this quote? extreme newbies

Discussion in 'Property Management' started by Good Vibes, 5th Feb, 2017.

  1. Good Vibes

    Good Vibes Member

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    Perth
    We unfortunately have to rent out our PPOR due to it not selling. We spoke to a PM and were sent the following quote. We are extreme newbies at this stage and we will be buying an investment property in the next six months to hopefully offset some of our costs. (I have a lot of learning to do before I jump in boots and all). We are in Perth but our PPOR is in the South West which has taken a major hit on house prices as well as rent LL's can get.

    Does this quote seem fair or should we shop around?

    * Lease or letting fee is equivalent to two weeks rent (this is charged when new tenants go into
    property)
    * Monthly management fees 9.6% (includes GST)
    * Property Condition Report (includes digital photo’s) $220 (this is once off charge)
    * Final Bond Inspection $99 (each time a tenant leaves property)
    * Inspections – first inspection is at no charge then quarterly these are charged at $55 each, a typed
    report is forwarded to you on each occasion
    * Advertising – at cost
    * Title Search : $24.50 (if required)
    * No charge for tenant enquiries – viewings (individual inspections- not grouped)
    * No charge for renewal of lease
    * Annual Summary (end of year financial report) $40
    * Court appearance $99 per hour up to $300 max

    Thanks
     
  2. D.T.

    D.T. Adelaide Property Manager Business Member

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    So you're basing how good / bad they are just on numbers?

    Will you get other quotes sort and lowest to highest? Or would you like some guidance on looking for quality?

    What area is the property in?
     
    Last edited: 5th Feb, 2017
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  3. wylie

    wylie Moderator Staff Member

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    I self-manage so those charges sound high to me, especially the two weeks' rent for letting fee, but offsetting this is there isn charge for renewal of lease and I think some agencies charge a week or half a week for that?

    I'd be getting other quotes so you can compare and possibly get a feel for how you get on with the PM.

    Someone local to your IP might jump in with a recommendation if you post the suburb.

    Good luck, and welcome to the forum.
     
  4. BKRinvesting

    BKRinvesting Well-Known Member

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    As above - obviously quality trumps price. But in saying that compared to what I'm used to in Sydney - those fees are high.
    I'd be shopping around to make sure you are getting the best value for your money.
     
  5. thatbum

    thatbum Well-Known Member

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    As the above peeps have mentioned, price isn't everything. But if you just wanted an opinion about prices, they seem within the normal range for Perth. Not good, but not awfully expensive either.
     
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  6. Perthguy

    Perthguy Well-Known Member

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    Those fees are fairly typical for WA. Unfortunately there is no correlation between the fee and the quality of the service.
     
  7. JetstreamVic

    JetstreamVic Well-Known Member

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    That also extends to PMs who charge more than others
     
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  8. Good Vibes

    Good Vibes Member

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    DT I would definitely like advice on how to spot quality. We are not just basing it on price I would rather pay a higher price and get good service and less hassle renting the property than finding a cheap PM who doesn't do much. I guess being in WA I should by now be used to paying a premium on most things. :rolleyes: The property is in Dalyellup in the Southwest so at least two hours away from where we reside now so I don't think self managing is an option especially because I have not had any experience as being a landlord yet.
     
  9. Stoffo

    Stoffo Well-Known Member

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    Seems to be the way things are going unfortunately.

    A letting fee once used to encompass most costs, now it's a letting fee, condition report fee, advertising costs and such on top.

    You have to have that condition report, if there is any damage it can make things way easier for insurance/bond claims ;)

    How much is the estimation for advertising :rolleyes:
     
  10. Ross Forrester

    Ross Forrester Well-Known Member Business Member

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  11. Good Vibes

    Good Vibes Member

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    Exactly who knows.

    As an aside where would people look at if they were going to buy an investment property in Perth? It will be our first and I know I need to do a lot of reading and learning and many factors will need to be factored in but are there suburbs we should keep on our radar?
     
  12. Stoffo

    Stoffo Well-Known Member

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    Each potential purchase has its own merits.

    Asking "what suburb" is a how long is a piece of string question!

    Some suburbs will be buy and hold, others with development potential, maybe it will be at land value and require a reno or just sit whilst applications go through, you may even just fall in love with a property and make it your PPOR and to hell with the rest :cool:
     
  13. Good Vibes

    Good Vibes Member

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    Hmmm boy there seems to be a lot to this Investing game. :eek:
     
  14. WestOz

    WestOz Well-Known Member

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    But in the end it all comes down to borrowing power, what your prepared to spend.
     
  15. dabbler

    dabbler Well-Known Member

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    No wonder people are not buying up in WA, the fees eat all the CG :eek: (or they add to your losses rather)

    I have seen WA showing higher rates elsewhere here, but everyone else I know on the East does 1 week as the letting fee, so that seems a bit rich.
     
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  16. SeafordSunshine

    SeafordSunshine Well-Known Member

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    Hi and welcome!
    here a few thoughts about your situation..
    Perhaps you might want to consider what it 'will' sell for?
    and use that as a comparable?
    Also when are most houses selling? ( Which month is usually busier in Perth)
    When are tenants looking to move? Ditto
    What length of lease do you want?
    Will you rent it and put it up for sale at the same time when the market picks up?
    Would a tenant 'present the house in good light?
    I hope this helps,
    and Good luck with this !
     
  17. TMNT

    TMNT Well-Known Member

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    I can assure you an agency that charges two weeks rent will have at least a one week or $100 releasing fee.

    I'll bet my house on it
     
  18. MTR

    MTR Well-Known Member Premium Member

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    wondering if south west pm fees are actually a tad higher than Perth???
     
  19. Perthguy

    Perthguy Well-Known Member

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    Maybe. I have seen some high quotes in Perth too. My point was that even with high fees in WA you will be lucky to find a great PM.
     
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  20. Good Vibes

    Good Vibes Member

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    How can their fees be maintained when prices in WA have dropped so much and so many businesses are beginning to price drop to meet the challenges in the economy? Is it cheeky to ask for a discount?