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PM costs & process for Sydney strata unit

Discussion in 'Property Management' started by S0805, 16th Dec, 2015.

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  1. S0805

    S0805 Well-Known Member

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    Hi there,

    trying to gather some information on what are the standard PM fees to maintain strata unit around Liverpool....I've been offered 6% PM fees and weekly rent + $30 for each letting. does this sound reasonable....PM offers the option to pay all outgoing from rent and EOY statement....

    also curious, How do the water rates get paid in NSW for strata unit....I mean do strata pay that or landlord needs to arrange with water supplier to be paid as direct debit or something. I assume landlord need to communicate with council as well to pay the rates......

    any recommendation/advise would be helpful.....

    thanks
     
  2. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    8.8% are the boutique agencies
    7.7% is the standard rate if they can get it
    6.6% is easy to negotiate
    5.5% - 4.4% if you have a few properties to give to the one agency (or you are a tough negotiator)

    Usually 1.5 weeks rent is normal

    They all do that - nothing special

    It depends on the water meter arrangements. One water meter only - Body Corporate pays and bills unit holders.
    If 1 meter per unit, then LL can pass water bills onto tenant for reimbursement if unit is water-wise.

    LL gets rates bill from council to pay or PM can get the bill and pay.
     
  3. S0805

    S0805 Well-Known Member

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    Thanks. How can this be find out?? Calling strata or something.....
     
  4. S0805

    S0805 Well-Known Member

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    Also, is it normal in NSW that notice to cancel the PM agreement is same as lease time i.e. 6 months....
     
  5. Scott No Mates

    Scott No Mates Well-Known Member

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    It is as per the agreement which you have signed with the managing agent.

    Sydney Water will send you a bill. If it has a separate usage charge, then you are separately metered and may be able to oncharge this to the tenant.
     
  6. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    No, the standard time for termination notice of a NSW PM agreement is 90 days, but we advise clients to cross that out and make it 30 days. If you want to be a hard a** about it, you can make it 0 days.
     
  7. Chilliblue

    Chilliblue Well-Known Member

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    Our PM agreements are 2 weeks and have had only one agencies push back.
     
  8. S0805

    S0805 Well-Known Member

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    thanks guys. I think lock in PM contract equivalent to lease time is no good. Better negotiate that. One thing I noticed that there is sundry charges that will in a away adds up to % fees above 6%....(e.g. 5% PM, $10 admin fee etc....)
     
  9. S0805

    S0805 Well-Known Member

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    in VIC you can only charge usage to the tenant if units are individually metered. Is it same in NSW???.....just realised in NSW there are two water charges....water access & water usage.
    Water access is cost to landlord and water usage don't know yet... trying to find out in my scenario....
     
  10. Scott No Mates

    Scott No Mates Well-Known Member

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    You will get a usage charge if it is separately metered.
     
  11. S0805

    S0805 Well-Known Member

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    thanks. called Sydney water and they end up explaining how the 2 separate charges will be billed.
     
  12. giraffez

    giraffez Member

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    Does this depend on the rent you are charging as well? For example 5.5pc of a property that is $300 a week is different to one that is $800, would it likely to be reduced for the $800
     
  13. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    No it is independent of $ value of rent.
     
  14. Chilliblue

    Chilliblue Well-Known Member

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    And more on your negotiation skills
     
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