In Victoria,could anyone please enlighten me how much commission is generally paid to a PM for managing your property>
2/ What comm is paid to an agent for selling your property? I am told it is negotiable but what is the range like- for both commervcial and residentialproperty? tks Piper
Hi Piper,
Firstly, welcome to the forum!!!
As a fellow Victorian, I can tell you that the PM fees vary from suburb to suburb, and I would imagine differ greatly between regional and rural areas.
Nonetheless, my IPs are Melbourne (suburbia based) and generally the fees in these areas range from 5-7% but you can negotiate less (say 6%) or if (like me) you offer more than one property they may agree to 5% (plus GST).
As for selling…..I generally pay the REAs 1.5% commission, however it varies on the area and the market value of the property. Obviously, the less valuable the property, the less the agent will make, and as such the less likely they are to negotiate a lesser commission. The most I have ever paid was 2% but that was on an 900K+ property and I got the advertising thrown in.
Can’t help with commercial properties,sorry not my area.
I guess the bottom line is NEGOTIATION. There is no harm in asking, and who knows??? they might even say “yes”!!!
Good luck,
Jo
Some agents offer a fixed fee for selling now.
This would seem to be more fair as the amount of money an agent would receive for selling your house for $10,000 more would be $200 (2% of $10,000), then take away 50% of the money retained by the company and the sales person gets $100 for selling your house for $10,000 more.
Some agents might not push the buyer for a better price, just get is sold. A fixed fee would be better from my point of view.The only problem with a flat fee is that it is generally lower than the average rate, which means that the salesman needs to sell more properties to get an income, so the pressure is on for the quick deal, usually the lowest price is the quickest deal.What you should be paying for is the salesmans negotiating skills in obtaining the best price for your property.So ask around for recommendations.
Good luck Garry[email protected] Always have cashflow positive Tasmanian commercial properties
availableHi Jo,
I know I have asked the question before, but can you clarify that the fee you quote includes:
a Property Condition Report when the tenant first moves in, and the ongoing quarterly inspection fee (if applicable), and the annual statement ?
ie…no other costs to you apart from the 5% management fee plus 1 weeks rent as a letting fee for new tenancy ?Thanks,
KPKP
I pay 7% to my PM in Vic, he also charges a statement fee of $2.5 per month plus there is also GST on these. It is a bit annoying to be charged a separate fee for the statement, but I have never challenged it as he is the best property manager I have ever had. (Located in Ballarat). I don’t pay any other fees. Once he even took a tenant to the tribunal and all I was charged was a lodgement fee of about $40.
For selling I have paid generally 2%-2.5% plus GST in Vic (and NSW).
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Originally posted by kp:Hi Jo,
I know I have asked the question before, but can you clarify that the fee you quote includes:
a Property Condition Report when the tenant first moves in, and the ongoing quarterly inspection fee (if applicable), and the annual statement?
Yes all are included (at no extra cost) and condition inspections are conducted at regular intervals and/or upon re-letting to new tenant.ie…no other costs to you apart from the 5% management fee plus 1 weeks rent as a letting fee for new tenancy ?
That’s right, no extra costs aside from 10% GST so in effect I am paying 5.5% unless you take into consideration lodgement fees (as TerryW pointed out) if matters are referred to the Tribunal ($40 or $50; can’t remember off the top of my head).Sorry about the delay in responding KP, and hey no problem; ask as many times as you like or need to…always happy to oblige!!![sunny]
Thanks Terry & Jo,
Just after some comparativre rates before querying the PMs’ over here why there are so many add ons to their charges.THanks
KPMany thanks to all of you for your help.piper
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