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PM Rates for Metro Areas per State

Discussion in 'Property Management' started by MsAli, 14th Jun, 2016.

  1. MsAli

    MsAli Well-Known Member Premium Member

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    Sydney, Australia
    Hi all,

    Curious to know what are the typical PM rates in the metro areas?

    Sydney is typically 5.5% inc GST
    Brisbane have found to be 7.7%-9.9% (less if you have multiple IPs with an agency)

    What are these in Melbourne, Adelaide, Perth, Darwin, Cairns?

    thanks
     
    Last edited: 14th Jun, 2016
  2. Joynz

    Joynz Well-Known Member

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    Location:
    Melbourne
    I pay 5.5%, in Melbourne.
     
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  3. Pumpkin

    Pumpkin Well-Known Member

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    Brisbane
    I think it will be worthwhile to quote the rate as well as the rent amounts.
    5.5% on a $1,000 weekly rent is quite different from 8.8% on a $250 property.
     
  4. D.T.

    D.T. Adelaide Property Manager Business Member

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    Location:
    Adelaide, SA
    In SA when I surveyed all the agencies, I saw everything from :
    5.5% to 12.5% on the management component
    Admin fee from $0 to $8.80 monthly
    Quarterly inspections from $0 to $33.50
    Yearly statements from $0 to $55
    Charging for photography, advertising, rent reviews, etc

    Some of the fees out there are atrocious. Choosing an agency based on what their fees are is a fools errand, but still pays to check the fine print.
     
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  5. Joynz

    Joynz Well-Known Member

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    Location:
    Melbourne
    The 5.5% I pay includes everything except advertising and renewal of lease.

    Exclusive of GST.
     
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  6. Jasmine

    Jasmine Well-Known Member

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    Location:
    Melb
    Outer Melbourne (north) metro, 3 bedroom, 2 bath, 2 carport, house - 5.5% with rent at $410/wk.
     
    MsAli likes this.
  7. HUGH72

    HUGH72 Well-Known Member

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    Location:
    FNQ
    5.5-8.8% Brisbane
    8.8% other locations in Qld
    8.8% NSW
    6.5% Adelaide
    Extra fees vary from none to lots.
     
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  8. Newfast

    Newfast Well-Known Member

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    Location:
    Syd
    Hi everyone i am looking for PM in Wyndham vale area and i have received quotes from 5.5% inclusive gst on rent of to 7.7%..on rent 9f PCM.

    Leasing fee=1 weejs rent +gst
    Lease renewal = some are 25$ to 110$ and some 0.2% of the rent of an year.

    Some charge 150$ - 280$ for advertisement and aome free.

    Some charge tenant data check $10 and vcat and warrants fees are similar.
     
  9. Dean Collins

    Dean Collins Well-Known Member

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    Location:
    New York
    5.5% in Sydney inc gst.
    1 week new tenant fee.
    $30 lease renewal fee.
    $0 advertising.
    $0 monthly and end of year statements (though I noticed one charged me $20 this year......will be discussing this in a week or two in time for next months payment).
     
  10. Newfast

    Newfast Well-Known Member

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    Syd
    Hi everyone i am looking for PM in Wyndham vale area and i have received quotes from 5.5% inclusive gst on rent of to 7.7%..on rent 9f PCM.

    Leasing fee=1 weejs rent +gst
    Lease renewal = some are 25$ to 110$ and some 0.2% of the rent of an year.

    Some charge 150$ - 280$ for advertisement and aome free.
     
  11. Scott No Mates

    Scott No Mates Well-Known Member

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    @Newfast - what other costs? Postage? Annual statement? Inspection? Lease preparation?
     
  12. Newfast

    Newfast Well-Known Member

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    Hi, some of them have 5.50 to 8$ postage charges but some offer free end of financial year statement.
     
  13. Coota9

    Coota9 Well-Known Member Premium Member

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    Melbourne
    What do they need to post?
    Haven't they heard of email!!
     
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  14. markson

    markson Well-Known Member

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    14th Feb, 2016
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    Location:
    NSW
    Kallangur QLD

    8% plus GST
    $6.60 monthly fee
    1 week rent plus GST leasing fee
    No lease renewal fee
     
  15. Pumpkin

    Pumpkin Well-Known Member

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    Location:
    Brisbane
  16. HUGH72

    HUGH72 Well-Known Member

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    FNQ
    Renting for $2000 per week in Brisbane?:po_O

    If they only intend to live in BN for a year maybe but $2M buys you a lot of house.
    Repayments on a $2M loan IO at 4% are only $80k per year or roughly $1540 per week. Even a P&I loan would be less than that.
     
  17. Pumpkin

    Pumpkin Well-Known Member

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    Brisbane
    @HUGH72 The article also mentioned other properties well over $2k pw, some $3.2k. I was being moderate already. It also mentioned stamp-duty alone equates rents paid.
    Love Brisbane!
     
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  18. Xenia

    Xenia Adelaide Property Manager Business Member

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    Location:
    4/136 The Parade Norwood, South Australia
    Adelaide rates range from 3.3% to 11%, some agents have letting fees, admin fees, lease renewal fees, statement fees, inspection fees, tribunal fees.

    Consider the total as a cost to having your property professionally managed, not just the management fee.

    A letting fee of one week rent is roughly 2% of the rental income. So if you are considering an agent with 8% management it's really 10% (plus gst) if a one week letting fee is added.

    Also set up costs, advertising etc should be considered.

    The above are not our fees just examples to consider.

    Stay away from the very low fee agents. 4.4%, 5.5% etc, these are not profitable business models, they are able to offer these by hiring cheap inexperienced staff and managing a lot of c-class properties. Property manager burnout is inevitable with cheap business models. The care factor is non existent too.

    I know that because we have a lot of properties transferring over to us from landlords who have been burned so badly that the very low management fee they were paying was just not worth it.

    One agency did not even know how to print out a ledger to give us of the existing tenant, they had no idea where the tenant was up to and the landlords have not received a payment for over 6 months. I had to go to their office to help them transfer files and show them how to allocate funds to clients. Yet they have a huge sign in their front window advertising a flat 4.4% management fee.

    .., and a huge financial loss to the clients. Those guys are overwhelmed, staff and clients are walking out on a daily basis but they are signing up new fee-sensitive clients on a daily basis too which keeps them in business.
     
  19. Magnet

    Magnet Well-Known Member

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    Location:
    Sydney
    Always better to choose based on merit not fees and negotiate to rate both parties are happy with.
     
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  20. C-mac

    C-mac Well-Known Member

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    26th Jun, 2015
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    Location:
    Sydney
    Great comments, very helpful. My NSW and QLD properties hover in the 5.5% - 7.7% range, but with varying cost structures for all the othee services mentioned above.

    I agree on paying for quality management, in my opinion a good PM is one of the most important people in an investor's professional 'crew'!

    Good BA's, brokers, PM's, accountants, lawyers, mentors, and investment community buddies round out an investors dream team, IMHO.

    Now, I do have a question: anyone know the going rates for good quality PM's in Hobart? I've heard anywhere from 8.8% - 13.2% quoted. Alarmingly as well I've also been told that service and skillsets are rather lacking there, even for those paying 10%+! Any truth to this?