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property management fees

Discussion in 'Property Management' started by Elives, 7th Jun, 2016.

  1. Elives

    Elives Well-Known Member

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    Is it possible to get the rent paid to you fortnightly / monthly and then pay the property manager via direct debit / eft / credit card?

    what would be the chances of a property manager allowing this? instead of them taking it out of the rent?

    Cheers, Elives
     
  2. Joynz

    Joynz Well-Known Member

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    Then you would have to chase missed rent or at least inform the PM about it.

    Seems like a waste of money, since that is what the PM is paid for - even if you are chasing points.
     
  3. thatbum

    thatbum Well-Known Member

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    I think Elives means that the PM forwards the rent directly to the owner, and then invoices for the management fees separately.

    I doubt any agency would go for it - seems to just make it harder for them, and no upside for them.
     
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  4. D.T.

    D.T. Adelaide Property Manager Business Member

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    No, can't see it happening sorry
    1) it'd involve double handling , 2 transactions instead of 1
    2) how does the PM know you'll pay it? At best they'd have to monitor the account for fees due
     
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  5. Xenia

    Xenia Adelaide Property Manager Business Member

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    For this to happen, you would need to override the system that automatically calculates property management fees, pay the fees back into the ledger, describe what you have done for auditing purposes, pay it manually to the landlord (because the autopayments will exclude the fees as they are programmed to do), then invoice the client.

    It will create an auditing and accounting mess on the system.

    Most of us would bend over backwards for a client, work hard and long hours to ensure things are done correctly and nothing is missed, however clients who want to override programmed systems are not worth the hassle. You would be better off self managing.
     
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  6. Scott No Mates

    Scott No Mates Well-Known Member

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    @elvies - What a brilliant idea. Move from model where commission & management fees taken from money received (exposing the agent to negligible bad debts) to one which increases the agency's costs as well as risk of bad debts and delays in cashflow.

    Would you be happy being charged an additional 25-50% for the benefit?
     
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  7. Elives

    Elives Well-Known Member

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    thanks all for your input yes i see it doesn't really seem worth it for the management company. i did not take into the consideration the extra work etc "it'd involve double handling , 2 transactions instead of 1" and the points Xenia raised about auditing and accounting. @Matt No Mates you make a valid point no i wouldn't want to pay 25-50% more..
     
  8. Azazel

    Azazel Well-Known Member

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    I concur.
    But it can't hurt to ask the questions.
     
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  9. JK200SX

    JK200SX Well-Known Member

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    Interesting idea, but what was your reason for wanting to do it this way?
     
  10. fullylucky

    fullylucky Well-Known Member

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    he wants to earn pts for cc? lol....
     
  11. Lil Skater

    Lil Skater Well-Known Member Business Member

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    I'd consider it - but not on a monthly basis.

    The client would need to pay 6-12 months upfront, prior to funds being released.

    BTW the PM wouldn't need to go back and forth with the fees in the system, just cancel all fees relating to that property, issue an invoice for the period and you're done. Simples.
     
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  12. Newfast

    Newfast Well-Known Member

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    Hi Everyone, please advise if you know any good property manager or reliable agency in Melbourne to look after a IP around hopers crossing.

    Thanks
     
  13. D.T.

    D.T. Adelaide Property Manager Business Member

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    Look up Qura Property
     
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  14. Newfast

    Newfast Well-Known Member

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    Hi @D.T. , i spoke to them but they don't have any one in that area.

    Thanks though.