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property management how much would you pay

Discussion in 'Property Management' started by Northy85, 16th Apr, 2016.

  1. Northy85

    Northy85 Well-Known Member

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    I recently had a problem with where we rent and after talking with the Landlord discovered the problem was, once again, the property manager.

    After having problems in the past as a renter and a landlord with dealing with bad property managers, I'm asking you guys what you would like in a PM.

    For starters:
    # returning calls and emails within a few hours
    # each PM has only 50 properties on the books
    # 3 quotes per job without prompting
    # treats the tenants with respect so they feel like staying
    # detailed reports every 3 months with plenty of photos and observed market trends in the area
    # project manage minor renovations (new carpet, paint and tiles)
    # no extra fees or minimum contract time with the agency except for tribunal representation

    Would you pay 10% for that?

    Add in what else you think should be part of the service.

    Cheers.
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    50 properties @ $300/wk x 10% comms - as a pm you wouldn't get out of bed. You would get the grunt who'd be paid $45k tops
     
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  3. D.T.

    D.T. Adelaide Property Manager Business Member

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    Most of that sounds fairly standard, doesn't it?
     
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  4. Northy85

    Northy85 Well-Known Member

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    You would think so wouldn't you haha. Sadly not the case and I hear it all the time.
     
  5. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

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    I get that (except for 50 props per manager) for 6.6% already
     
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  6. Northy85

    Northy85 Well-Known Member

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    I would be thinking more around the $400-$450 per week properties.
     
  7. RiMo

    RiMo Well-Known Member

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    A good PM is only as good as the person doing it. You want someone who is professional, hardworking, proactive, and proud of his/her work.

    We're happy if they can return our calls/emails within 24 hours - except in emergency situations. I'm not sure how many properties that our PMs actually manage but we use property managers who have anywhere from 140 properties (penrith) to 1400 properties (lower north shore) in their book. 2 quotes would normally be sufficient but we're in the building industry so we know how much things would cost.

    We pay average of 6.6% but I'm not familiar with other states. No extra fees other than tribunal hearings. As landlords it is in our best interest to keep our properties in the best possible condition, so we expect our tenants and PMs to facilitate this by reporting any problems as soon as they become apparent.
     
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  8. Xenia

    Xenia Adelaide Property Manager Business Member

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    Open inspections on weekends and after hours

    Inspections arranged while a tenant is already in place paying rent to minimise vacancies.

    Ability and experience to get insurance claims through even when they are rejected the first time.

    Ability to negotiate move out dates for one tenant and move in dates for the next within the term of the lease so that vacancies are zero for the landlord.

    Ensures that maintenance is done on time to protect the landlord from compensation claims. Knows who to use and who can get job done correctly. Has the appropriate license to check on and supervise all work.

    Ensures properties are cleaned correctly between tenants.

    Can handle any problems that occur any time because they have seen it all.

    Owns the business - the worst person you can have managing your property is an employee working 9-5 who hates their job. It will show.

    Absolutely treat tenants with respect but an agent is an advocate for the property owner and everything we do is to minimise costs, vacancies and protect the owner from claims.

    Getting 3 quotes while the tenant is sitting there waiting for hot water and has not had a shower in days waiting for quotes, is not treating the tenant with respect. Even if one quote is $100 less.
     
  9. bob shovel

    bob shovel Well-Known Member

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    For starters:
    # returning calls and emails within a few hours
    That's probably not long enough, depending on the situation
    # each PM has only 50 properties on the books
    # 3 quotes per job without prompting
    I'm not fussed. If it's a reasonable hourly rate by someone they trust, I'm cool.
    # treats the tenants with respect so they feel like staying
    Yep! But I can understand how some tenants could easily ruin your day!
    # detailed reports every 3 months with plenty of photos and observed market trends in the area
    Reports yes, market only at end of lease
    # project manage minor renovations (new carpet, paint and tiles)
    Expected
    # no extra fees or minimum contract time with the agency except for tribunal representation
    depends on the extra fees, some are necessary. I don't want my fees jacked up due to cover someone elses problems. Minimum needed so they know they have a client, same as a lease agreement
     
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  10. Northy85

    Northy85 Well-Known Member

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    Yes true. The minimum would be a piece of mind thing for the agent. Maybe market report once a year then incase the tenants stay a fair while.
     
  11. Northy85

    Northy85 Well-Known Member

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    Thanks for that, I was actually hoping you would reply to the thread. You run a tight ship in adelaide by the sounds of it then.

    Emergency actions should be completed as soon as possible but all general maintanace i would like 3 quotes.

    Everything else would be awesome if that was more common. What rate do you charge for your management?
     
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  12. Northy85

    Northy85 Well-Known Member

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    If you're comfortable with the 2 quotes then that's all that matters. I'm the same with property maintenance, fix it quickly and keep everyone happy. A stich in time saves 9.
     
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  13. Nick Valsamis

    Nick Valsamis Well-Known Member

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    The only other things which I would add to the list are:

    - Provide professional photos for advertising, phone photos are not good enough.

    - Be available outside of business hours.
    This helps when there is a plumbing issue where the agent can negotiate with the tenant to have the repair done during business hours.
    If the agent isn't contactable then the tenant is likely to use an emergency plumber and then pass the bill on to the landlord.

    Of course everything posted here would only apply to the best property managers around which isn't something you will find in abundance.
     
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  14. Northy85

    Northy85 Well-Known Member

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    Totally agree mate. After hours calls would be awesome. I wouldn't mind the odd after hours call from a tenant to potentially save a landlord 200 bucks in call out fees.
     
  15. D.T.

    D.T. Adelaide Property Manager Business Member

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    Saved a landlord 200 bucks the other day.
    Had a property professionally cleaned before tenants moved in.
    Tenants complained, said it was dirty (back and forth, send pictures for proof blah blah blah).
    They demanded cleaner be resent (declined) or that they deduct $200 from the rent and clean it themselves (declined).
    I said I'd come clean it myself, put some gear in the car and drove up there. I had to pick up some belongings the owner had left behind anyway. Got a text on the way there that they had to go out in a hurry and they left the belongings out the front for me. Bullet dodged ;)
     
  16. Northy85

    Northy85 Well-Known Member

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    Nice one calling the bluff.
     
  17. bob shovel

    bob shovel Well-Known Member

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    Also 10% is a bargain if you're in WA, 14% the one I spoke to recently
     
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  18. dabbler

    dabbler Well-Known Member

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    As others have said, nope....not in Sydney anyway.
     
  19. D.T.

    D.T. Adelaide Property Manager Business Member

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    I'm paying under 10 in WA, what area is your property in?
     
  20. MTR

    MTR Well-Known Member Premium Member

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    What the hell, I am paying 8.5% for all my properties in WA, I just negotiate, all in different areas.

    Never heard of 14% that's outrageous