Typical Brisbane PM Fees

Hi all,

What are typical property management fees in Brisbane?

Thanks a lot

 

6.6%

 

Mine are 8.8%..

 

That's super low. What area is that if you don't mind sharing?

 

Thanks.

Would you say that's about average for Brisbane or on the higher end?

 

High. Too high

 

Mine are 8.8% (inc gst) as well.
I shopped around and this was the average going rate.
Its this 'high' because that's an 'all inclusive' and they don't charge for re-lets (sign same tenants for another term), every inspection, every phone call etc etc.
The only thing not included is new tenant letting fee (1 weeks rent), and $5.00/mth admin fee.

There was only one place I found that was 7.7% (inc gst), which then charged very differently and added every little bit on top.

 

Cool, good to know. I found an excellent PM at 9%. Originally I thought that was too high but I might consider it now.

 

7% or 8% + GST

Brisbane seems to be a bit higher than other places.

 

8.8% inc GST is market average but obviously with multiple properties you have some leverage to negotiate the fees with the agent.

 

Thanks a lot guys.

I have noticed Pure Rentals are much cheaper than other PM companies. They only charge 1249$ plus GST which for a 500$ rent per week turns out to be only around 5%.

Any idea why they are so much cheaper? Does it come with a lower quality of the service?

 

yes I multiple with them, so walk in street customer is probably 8.8%.

 

I'm going through this now...I've whittled it down to three agents and have been quoted the following as 'rack rates' R&H Chermside 8.8%, Ray White Aspley 7.7% & LJ Hooker Aspley 8.25% all inclusive of GST. They're 'all inclusive' but for the same $5/month rip off fee (which they are all willing to knock off), one weeks rent letting fee and no other charges other than going to tribunal.
I need to appoint someone this week and get the place let. I've been renovating for nearly 2 months since settlement

 

Hi all,

Yes, 8.8% is standard and you shouldn't be paying admin fees and sundries on top of this. As mentioned, these should be included as part of your management fee and I encourage people to look at the overall fee structure and add up the actual amount of overall rent as a percentage. Many agents will be quick to discount the base fee knowing they'll make it up in other hidden charges. The relet fee for the same tenant in particular is a killer! Do not pay it!

As far as charges go, as with anything you absolutely get what you pay for. Whenever margins are shaved down in any business it translates into cost cutting elsewhere. In PM, it's usually the calibre of software and staff who are paid less, have less experience and systems and procedures are non-existent. I've been an investor for many years and in my experience, saving $5 a week pre-tax shouldn't be the focus. Look for a service proposition, not a price proposition.

Remember, aside from macro growth, the PM you hire will have the biggest impact on the value of your investment over your holding period and not enough people understand this while making their decision.

I've had experience with some of the agencies above, feel free to get in touch if you'd like some answers.

Cheers

 

Sounds like you had a lot of fun renovating. I don't have any knowledge or experience with the PM's you mentioned, but I'm sure you've done a lot of research.

My choice have come down to:
- Rental Guardians (9.35% inclusive of GST)
- My Property Pro (8% plus GST),
- Pure Rentals ($1249 flat fee plus GST, on my 550$ rent it comes to only 5%).

Pure Rentals is the obvious winner price wise. I wouldn't have a clue who offers best quality of service, so if anyone has used any of these PM's, please share your experience.

 

One vote here for @MyPropertyPro.

Can't fault them, they have always provided an excellent service managing my two properties in SEQ.

 

Another vote here for @MyPropertyPro regardless of price

 

Thanks guys.

Does anyone have experience with Pure Rentals?

They offer very good price.

 

I have used Pure Rentals years ago and I must say, I was not impressed when it came to crunch time which led me to ultimately move all my properties to another PM.

I have also used property managers based purely on rates and whilst I did save a few bucks a week, I ultimately lost thousands of dollars in mismanagement including disappearing tradespeople and consequences of bad tenant placements.

Any property manager can list a property, take some calls, do some opens, sign up a tenant and collect rent. Its when actually selling a property to prospective tenants at an inspection, rental arrears, maintenance issues, property being trashed, insurance claims, urgent communications etc arise that will truly test a good or bad property manager in terms of how efficiently and cost effectively they can get the property back on track.

I have witnessed my current property manager physically demand rent to be paid from my tenant in the living room of my property in a less than 'polite' manner with threats of eviction. Whilst this method should only be used under the right circumstances, this particular situation needed it, and proved to be effective. I have not had any arrears or trouble since.

 

I'm not quite sure I didn't write this part of your post Simon Couldn't agree more!