SA PM fees

Hi all

very new to this forum and REI in general.
just got hold of a collection of 5 units and in the process of organising PM

current set up is:
total rent approx. 950wk
PM 9.9% gross
letting / re-letting 2.2wk
lease renewal 1.1wk

Is this standard for this type of property?
Anyone other there with similar experience?

 

@D.T. has a great reputation and manages several for other investors on the forum, he may be able to provide a comment.

 

That’s about the going rate in SA. You can get 8.8% but you can also get some pretty rubbish agents.

We switched to D T last year and have been happy.

Good luck

 

Dear The Unknown
Congrats! and welcome!
Just a few other things you might want to consider, besides management fees.

Have you got a upkeep plan for this group of units?
Have you got a depreciation schedule?
Are the tenants on leases?
Are there any arrears?
Who pays the rates?
Who pays the insurances?
Are the up to speed with safety/ appliances/ security?
What about the relevant Act?

What a great learning curve for you!
I Hope this helps!

 

@D.T. is your man. Have him manage it for you

 

What suburb are they in? Rents sound low so might be a lower socio area? Or maybe there's some scope to increase them?

Are the 5 all in one group? If so are there others in the group or you have whole group?

 

Would recommend @D.T. as well! Fees sound reasonably standard though, especially if the rent is on the lower end per property

 

Thanks for your reply!
They are in the Riverland, all 5 as a one title. Lower end fit out but cash flow well with scope to individually improve as needed.

 

Thank you for your reply!! I really appreciate your comments, it’s very helpful!

- upkeep plan... I was thinking of having money set aside for emergencies but haven’t consider an upkeep plan. How do you structure this with your properties?
- These are older units with a pretty basic fit out - is depreciation still applicable.. should ask my accountant this too.
- tennants on yearly leases, all fully occupied
- I pay council rates (pretty steep), sewage. Tennent pays water, electricity
- landlord insurance sorted. Any other insurance needed ?
- safety and security: few things need fixing and tidying up but otherwise ok
- relevant act? I’m not sure about this one...

Sorry if these as basic questions / issues
And yes... big learning curve ahead haha

 

Do you have building insurance too?

I know some policies won't cover common areas, but if it's all on one title that may not apply.

 

Yeah building insurance all sorted through Allianz

 

I would not recommend Allianz. Very poor claim process and they keep adding requirement to make process tedious and painful. Staff is rude on phone and do not bother to listen or understand.

 

@Xenia also has a great reputation for property management in Adelaide and manages many properties for other investors on the forum. She's too busy running her business to reply but you can contact her through her website..
Property Management - Alexa Real Estate