Redbank Plains, QLD - Property Management Help

Hello
I've recently bought a property in Redbank Plains and tossing between 2 agents for PM services - Atlantic and Ray White.


I bought it from Atlantic. Settlement is next month. Atlantic has provided a lower rental appraisal than RayWhite. Less by $10-15pw.

But Atlantic's commission is 0.55% higher than RW. Atlantic doesn't charge any extras like lease renewal, bank inspection, financial statements or exit fees etc etc. RW charges all of these. Advertising costs for RW are double.

So there are pros and cons with both. Does anyone have experience with their services? Any thoughts or advice is greatly appreciated.

Thanks

 

In all honesty, if 0.55% is worrying you then I'm a little concerned at your approach to investment costs. At Redbank Plains rental amounts, that would equate to less than $2.00 per week before tax (and you will get some of it back). Although I agree that agents shouldn't be charging all the little extras like bank fees, etc., your whole post is focused on the fee structure and not on their experience as investors and asset managers.

Have you interviewed them both and asked for references from other clients? Do they have an online portal? Are they experienced investors with a principal who understand property management and its importance in the investment equation, or is the PM department just an offshoot from the sales department employing young and inexperienced property managers who are just looking to get into sales for the big commissions? How often will they inspect? What is their rental arrears policy? How do they plan to lease the property? Will they do after hours and/or private inspections if required? The list of questions goes on and personally, the fee structure is the last thing I enquire about unless I already know the agent is good at what they do.

I wouldn't worry about the rental appraisal as much as I'd worry about their leasing process and how they handle enquiry which is far more important.

As an investor you should be looking at what the agent does to protect your investment to save you thousands of dollars of both direct and intangibles over the holding period. As with anything, you get what you pay for and saving a couple of dollars per week can literally cost you thousands and thousands of dollars elsewhere. I've been investing for a number of years and have a relatively large portfolio and I can assure you that having done it myself, engaging a poor and cheap property manager is one of the biggest mistakes you can make as an investor. Go back and ask them the hard questions - if they don't or won't answer then look elsewhere!

All the best with your investment

- Andrew

 

If I pay someone triple what everyone else charges and they save me enough money / time / effort through excellent advice and service then its good value to me.

 

A good property manager can make or break the investment. It isn't the area to skimp on.

Perhaps talk to Andrew who posted above me if you want an independent option.

 

Completely understand and I'm with you. Thanks for the guidance Andrew. This is exactly what I was looking for.

 

I think ray white are a rip off.