PM Rates for Metro Areas per State

We own a block of 4 units. They were managed by a PM who charged us 6.6%. We weren't happy with the service (eg communications was slow and poor, we felt our vacancy periods were too long, for lease renewals, it was hard work to convince the PM that fair market rent was higher than what they were proposing, etc).

Out of frustration, we changed PMs to an agency that managed another of our IPs. They charged 8.8%. With five properties, we requested a 'volume' discount. They replied they couldn't as they did not want to lower the standard of their services. We weren't happy but we knew the quality of their work. On the first anniversary of the new PM's appointment, we compared the net rent (gross rent minus all PM charges) received against the net rent for the preceding 12 months with the previous PM. We were $8,000 better off.

Morale of the story: it is NOT what the PM charges that is is important; it is what ends up in your pocket.

 

I think you are 100% right about quality property managers being worth their fees hands down.
Knowing that there are only a few property managers of our standard locally, in our local area.

My opinion is the first step is to find at least two agents you think will do the job great and your investment justice, and the second step as a investor is compare apples with apples - what is the full cost of the management (as you articulated so well) and now work through is the extra cost worth paying more - cheaper is not always worse and expensive is not always better, there are many more ways for a agency to be horrible. The easiest way to do a bad job as you mentions is to not be sustainable which I think is where most cheap/nasty agencies standout (exit from my monologue). Now once we have our two agents we like we can really say is that value for money comparing the agents and pick the best value and still get a very capable agent you know -Transparent, good communication, and the ability to demonstrate their claims/recommendations based on past results/evidence

NOTE: if you cant find two good property managers, it doesn't matter what the first one is charging because at this point they are hired

 

Brilliant

 

Who do you guys use?

 

We are looking for one around Kings Park, Victoria. Which would you recommend?