real estate fees

Discussion in 'Property Management' started by fayk, 19th Nov, 2018.

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  1. fayk

    fayk Active Member

    Joined:
    2nd Jun, 2017
    Posts:
    31
    Location:
    Sydney
    first time renting our PPOr to make it IP
    its a regional NSW area (Goulburn)
    we contacted the RE we bought the house from , the are the largest and reknowned RE agents in the town and they have been really helpful throughout out buying process

    We are looking at $430/week rental income and below are the figures of the RE fees
    Our management fees for residential properties are:
     Our Commission is 8.8% (GST Inclusive)
     Our letting fee is One weeks rent + GST
     Our lease fee is $33.00 (GST Inclusive)
     Our administration fee is $4.40 (GST Inclusive) per statement

    I was told that there is no other charges involved
    Does it look a bit bit too much?
     
  2. Bradley Peet

    Bradley Peet Active Member

    Joined:
    19th Oct, 2018
    Posts:
    33
    Location:
    Sunshine Coast, QLD
    Seems to be fairly standard.

    I'd negotiate out the re-leasing fee and admin fee, personally.
     
  3. Mick Butterfield

    Mick Butterfield Well-Known Member

    Joined:
    15th Jan, 2016
    Posts:
    603
    Location:
    Bermagui NSW
    Yeah it seems pretty standard to me for a regional area.
     
  4. D.T.

    D.T. Specialist Property Manager Business Member

    Joined:
    13th Jun, 2015
    Posts:
    8,738
    Location:
    Adelaide and Gold Coast
    Compared to what?
     
  5. dabbler

    dabbler Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    7,111
    Location:
    Sid en e - olympic city
    I would say too much for Goulburn, but in saying that am not in that market.

    I would say no fee for re lease to same tenant

    8.8 is too much with all the extra fees....imo....but depends on how good a job they do.

    My highest fee PMs have been worst performers, so performance is not tied too fees. Never has been.
     
  6. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

    Joined:
    18th Jun, 2015
    Posts:
    3,641
    Location:
    Canberra, Brisbane and Sunshine Coast
    Looks pretty normal to me.

    Having said that - I'm used to Canberra rates/fees which are similar to those that you've outlined.

    In the larger cities it's usually a bit cheaper - but the rents are also higher.

    Cheers

    Jamie
     
  7. Tom Rivera

    Tom Rivera Property Manager Business Member

    Joined:
    1st Jul, 2015
    Posts:
    1,544
    Location:
    South East Queensland
    Doesn't seem particularly high to me, especially if they're offering an excellent service.
     
    Michael Mitchell likes this.
  8. Andrew Allen

    Andrew Allen Well-Known Member

    Joined:
    20th Jun, 2015
    Posts:
    62
    Location:
    Brisbane
    It seems reasonable compared with QLD rates, regional is likely to be higher. I believe the best metric is make sure as best you can that you are going to get a reasonable service or better, then consider fees after that. It's commonly considered by landlords the other way around.
     
    Michael Mitchell likes this.

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