(SYD) How much does your PM charge you?

Discussion in 'Property Management' started by sunjet, 20th Nov, 2016.

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  1. sunjet

    sunjet Member

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    Just thought I'd start a thread to see what was normal and what charges I should/shouldn't be paying for. What do your PMs charge you?
     
  2. wombat777

    wombat777 Well-Known Member Premium Member

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    8% +GST in qld. I don't have details of the other fees and charges handy.
     
  3. Property Twins

    Property Twins Mortgage Brokers - Australia Wide Business Plus Member

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    5.5% including GST in Western Sydney. Excellent service. Realised how spoilt we were after buying interstate!
     
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  4. D.T.

    D.T. Specialist Property Manager Business Member

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    Sydney is the cheapest PM of all state capitals. Part of this is from the higher rents but also the most competition. I've seen everything from 3 - 8 percent there.

    Same as loans though, don't make a % based decision, make a decision based on who'll align closest with what you need / want.
     
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  5. Joynz

    Joynz Well-Known Member

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    5.5% + GST- in Melbourne
     
  6. MyPropertyPro

    MyPropertyPro Property Management Sydney & Brisbane Business Member

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    Agreed. I'm paying 6.6% in Sydney but as D.T. said, it's mainly competition as the rents definitely don't make up for the much lower percentages when it comes to operating margins for the agency. As with anything, you get what you pay for and I'm more than happy to pay a few extra dollars per week as if you're paying 3-4%, you're going to get the appropriate level of service!

    Landlords should be aware that the percentage management fee really is only one consideration of the overall fee structure. Many PMs will be quick to reduce their management percentage but still charge all the little extras and if you add it all up, it usually becomes anywhere from 9-12% of total rent. Basically, those fees disguise the overall percentage so be wary - you shouldn't be paying them!

    - Andrew
     
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  7. Hedgy

    Hedgy Well-Known Member

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    For two properties in Sydney's inner west I'm paying 5% + GST (for each property). My PM provides an absolutely amazing service for which I'd happily pay more than 5%, but please don't tell her that
     
    Last edited: 21st Nov, 2016
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  8. Excalibur1

    Excalibur1 Well-Known Member

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    im getting 5%+ GSt on my properties too.. Excellent service, sometimes i feel bad so I regularly send nice bottles of wine and chocolates. Karma will do the rest
     
  9. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Member

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    Many Sydney agents also "pad" their charges with extras that are not as common elsewhere such as : (Amounts are typical norms from tax returns)
    • Monthly "misc" fees ie postage $5-$10pm
    • Annual tax stmt fee $55-$110 (Bizarre since it sent at same time as final stmt)
    • Letting fees $50-$880 (High charges are also very common in QLD)
    • Lease prep fees (when agent isnt a lawyer ?)
    • Trib attendance fees $110+
    • Property inspection fees $88+
    • One or two who charge a separate fee for accounting admin for payts made to council etc
    • Only one who charges a % fee based on the cost of a repair....Strange.
    • Advertising for tenancies which are normally low but can be $330-$550
     
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  10. Dean Collins

    Dean Collins Well-Known Member

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    5% + GST (Sydney all 2 and 3br apartments)
    1 week rent for finding new tenants,
    generally some kind of lease prep fee for new leases eg $30 or so when renewals come up.
    Some kind of annual fee for the end of year report $20 or so which I think is BS seeing its been emailed etc (same with people who pay for monthly statements.....what the heck folks I thought you guys were negotiators??)
     
    Last edited: 23rd Nov, 2016
  11. skater

    skater Capitalist -- www.skatepro.com.au Premium Member

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    I have two excellent PM's in Sydney. One charges 5.5%, the other 5%, GST included, & neither of them charge any of that BS. One of them charges me for the annual statement, but then refunds me the next month. Apparently they can't pick & choose who to charge, so everyone gets charged. I've never been charged for tribunal attendance, nor have I ever been charged for property inspections or advertising.

    The lease prep fee, I believe, is the cost of lodging the lease, which is charged to the Agent whenever a new lease is lodged, so they pass that fee on.

    The only additional fees I get charged are a lease prep fee of around $30, one week letting fee & the stupid 'misc' fee of $4 (I think). As most tenants are long term, this has little impact at all.
     
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  12. Beccarie

    Beccarie New Member

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    Would you be willing to recommend her services?
     
  13. Hedgy

    Hedgy Well-Known Member

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    Absolutely. Do you want me to Inbox you her details?
     
  14. GetRIDof5CENTpiece

    GetRIDof5CENTpiece Well-Known Member

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    Melbourne bayside. 5% including GST + $2.75 statement fee every month.
    None of the rest though :)
     
  15. Zoolander

    Zoolander Well-Known Member

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    Have this handy sheet with a couple of PM I was researching, all in Sydney NSW.
    The management fee ranges from 4.4% to 7.7% including GST. There's usually a few bucks of admin fee, 1 to 1.5 weeks rent as a letting fee and you're paying for your agents time at tribunal. Some charge for an end of financial year report.

    It's worth looking at the percentage fee after all the other costs are factored in if you need to compare actual fees.

    I'd recommend asking how your agent would handle tricky scenarios. A quick google search will give you a list of things to ask before choosing a PM. The lower rates aren't necessarily worse - their main goal is to do a good job so when you decide to sell, they're the preferred choice for that sweet sales commission they'll pocket (which sure beats a few an income stream of $2000 a year based on NSW rates.
     

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  16. kimbo

    kimbo Active Member

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    Hedgy

    If it's ok would love to know your pm too
    I'm looking at changing mine for my IP in Carlingford
     
  17. fols

    fols Well-Known Member

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    My personal experience over the years is you usually get what you pay for. The PM's I've had with the cheaper rates have offered inferior results than those with a higher rates. By results i mean reduced/ eliminated vacancy rates, ability to execute rent increases, not just prompt customer service. I've recently changed over quite a few PM's. Worthwhile considering that a commission variance of 5% to 7% may seem like a huge deal, but on a property renting for $400 p/week that net difference is only about $400/ year. This can be clawed back by a 1 week vacancy reduction or a $10/ week rent increase. Of course if you can get great results for 5%, even better- I have a few of these, but its more the exception rather than the rule.
     
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  18. Peter P

    Peter P Well-Known Member

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    4.4% + $5.50 admin fee per month for 2 houses in the same suburb in Sydney. They are excellent

    Got one in QLD for 8.5% + GST (no admin, annual fees), but I get what I pay for.
     
  19. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

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    5.5% multi property, no annual/statement fee, 1.1 weeks letting fee
     
  20. devank

    devank Look, lets just get on with this, ok? Premium Member

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    @D.T. - I want what Dave's having :)