PM management fees Brisbane bayside

Discussion in 'Property Management' started by Matt87, 3rd Feb, 2019.

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  1. Matt87

    Matt87 Well-Known Member

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    hi guys,

    Just wanting to find out what is good Managing fees % I have my places currently leased with a fee off 8.5 + gst just sourcing out a better deal or trying to nego down?

    Matt
     
  2. jazzsidana

    jazzsidana Well-Known Member

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    I pay around 7.7% GST inclusive and super happy with the PM managing it!.
     
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  3. mikey7

    mikey7 Well-Known Member

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    I'm on 7.7% Inc GST too.

    The only PM I came across that was 8.5 + GST was Griffin RE, and couldn't see any reason for justifying that price.
     
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  4. kierank

    kierank Well-Known Member

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    We pay 7.7% incl GST
     
  5. kierank

    kierank Well-Known Member

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    Oops, I just checked. We are paying 8.25% incl GST.
     
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  6. MyPropertyPro

    MyPropertyPro REBAA Buyer's Agents Sutherland Shire & Surrounds Business Member

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    It is almost impossible to compare or give an idea of the going rate based on the % alone. 8.5% could be considered cheap and 7% expensive depending on the overall fee structure. I have seen 5% mgmt commission (what a great deal!) work out to be 13% plus effective yearly percentage of rent based on the additional fees.

    Don't get too caught up on the %, look at the overall fee structure.

    - Luke
     
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  7. kierank

    kierank Well-Known Member

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    At the end of the day, % PM fees means nothing; what is really important is how much cash ends up in one’s bank account on an annual basis.

    High vacancy rate will do more harm than a slightly higher PM fee.
     
  8. Rich2011

    Rich2011 Well-Known Member

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    And poor management... Just as the PM will be checking your tenants references you need to check out your PM too before you employ them!
     
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  9. dabbler

    dabbler Well-Known Member

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    No 8.8 for Bris and surrounds, this is remote NSW town rates...or Perth

    Anyone asking this amount better be squeaky clean and minus any other fees...and do an excellent job, then I would not ignore....I mean, really excellent.

    PS anyone I have used that charged exactly 8.8 has been atrocious....interesting, but true !
     
  10. Michael Mitchell

    Michael Mitchell Well-Known Member

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    This is what I charge just for a reference:

    upload_2019-2-9_16-42-22.png
     
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  11. Tom Rivera

    Tom Rivera Property Manager Business Member

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    Hey @Matt87, that fee is a little high but not extraordinarily so. As you've seen above, fees in the area tend to be around 7.7-8.8%, plus usually some associated fees like letting, leasing, documentation, etc. etc.


    Now... I know you didn't ask this question, and I can't hide my bias here seeing as it's obvious what I do, but I want to point out that you need to be careful fee hunting. If you're not exceptionally happy with your agency, I can understand fees being the 'straw that breaks the Camels back', but it's short-sighted to choose your PM based primarily on fees. Of course I know of some exceptional Property Managers who work in businesses who charge cheap fees, so fee isn't always correlated to service (it should be, but here we are), but it should be secondary consideration regardless.
    For example, the difference between 9.35% and 7.7% on a $400.00wk property is $343.20 per year in fees. You can easily lose that on one week of vacancy, a poorly written entry/exit report, inexperienced tribunal or insurance preparation, poor tradespeople, etc. etc.
     
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