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Whats your PM rate in WA?

Discussion in 'Property Management' started by Blacky, 18th Apr, 2016.

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  1. Blacky

    Blacky Well-Known Member

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    In similar veign to the interest rate thread, I thought I would do some market research into what you are paying your PM in WA (Perth or otherwise).

    My IP is currently leasing at $650/wk.
    PM Fees are;
    8.00% + GST (8.8% all up).
    letting fee - 2x weeks rent for new tennants
    Lease renewal - $150 each time a tennant extends a lease
    Routine inspection fee $66 (currently running on 4per year).
    Property condition report - $250 when a new tennant is coming in
    Bond report - $250 when a bond inspection is carried out (not sure if these are the same or not but would hope so).
    Monthly Admin fee $8.80/month
    annual report - $45
    One off fees dependand on situation (usually an hourly rate). things like court appearances etc.

    I was looking for a discount and they offered to drop the fee to 7.27% (8.00% including GST) provided I signed an agreement till 2019.
    They say their 'standard' fees are 9.35% (+GST).

    Im not really interested in comparing this to Eastern States market cos I know you guys pay a lot less. More looking at comparing rates to WA counterparts.

    Im looking for ways to get some of these costs down.

    Blacky
     
  2. Agent99

    Agent99 Well-Known Member

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    ok i dont have any IPs in WA but those fees seem pretty out there !!
    Our routine inspection 4 x yearly included, ingoing outgoing included,bond included, annual report I assume is statement ? No charge.
    Have you shopped around or are you way out of the city and have little choice ?
     
  3. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    I pay 10% flat, all inclusive. I like knowing that everything is included.
     
  4. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    That is bloody good @Jess Peletier ! The lowest all inclusive I've seen is 15%
     
  5. D.T.

    D.T. Adelaide Property Manager Business Member

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    9.9 all inclusive for my WA property
     
  6. HD_ACE

    HD_ACE Game-Changer Premium Member

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    8.8% incl + + + + + + +
     
  7. LifesGood

    LifesGood Home Building & Development Consultant Business Member

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    Who's your PM DT?
     
  8. Skuttles

    Skuttles Well-Known Member

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    Flat 10% incl gst for me, 24 month contract period.
     
  9. thatbum

    thatbum Well-Known Member

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    What you got there seems pretty good - better than my two PMs on everything except the 2 week's letting fee - I got it down to one week! I don't think many offer that in Perth these days though - I don't even think my ones do anymore.
     
  10. sanj

    sanj Well-Known Member

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    de freitas and Ryan does 10% all inclusive.

    I'm currently on a 10% inclusive deal with another agency as well but that's more because of the fair bit of past deals done with the principal
     
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  11. sanj

    sanj Well-Known Member

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    @Blacky personally I wouldn't be entertaining the idea of a 3 year contract, too much can go wrong in the meantime, eg current excellent staff leaving and being replaced by lemons
     
  12. Blacky

    Blacky Well-Known Member

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    Yeah. This is my thoughts also @sanj
    I'm not willing to go out that far.
     
  13. kennyboi

    kennyboi Well-Known Member

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    Wonder why fee is so high in WA. Do they need to do much more than NSW?
     
  14. Nick Valsamis

    Nick Valsamis Well-Known Member

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    Because that is the adopted pricing in WA and no business would go in and charge a lot less when they can easily make more money but charging the current market rates.
     
  15. D.T.

    D.T. Adelaide Property Manager Business Member

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    Supply / demand
     
  16. Redwing

    Redwing Well-Known Member

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    I've found some PM's will discount if offered several properties
     
  17. bob shovel

    bob shovel Well-Known Member

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    Northam 14% I didn't read the fine print :D yields are 8-9% and huge discounts. BuT seems to have not moved with Perth, last peak 2006ish I think it was.
    $20m hospital Reno, aldi and Bunnings coming, along with a fluctuating flow of ice!
     
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  18. chibs

    chibs Active Member

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    11% all inclusive + 1 leasing fee
    Another one charges 8.5%+GST+2 leasing fees + other charges(routine inspections, final inspection, preparing reports, taking pcr, stationery +++++)