Hi all,
I’ve bought my first IP in Coober Pedy and it’s being rented through Coober Pedy real estate.
I have heard most real estates take about 7.7 to 8.8% of the rent where these guys want 11%.
I was wondering if anyone else pays this much in the area as it’s remote, or if they’re paying less.Also under maintence/repairs they ask what I want the maximum expenditure without approval from me to be. Any suggestions on what I should set the limit at?
Thanks guys
easymoney
Hi easymoney,
That has been my experience also. In one such town I used a private manager to avoid the commercial managers and she turned into a nightmare (used overcharging tradies, charged for work not done, tenants from hell etc). Steep learning curve which probably would have been avoided with a little more due diligence on the “manager” and the management culture in the town.
I have succumbed to the system for the moment and am constantly on the lookout for bargaining leverage and a more appropriate private manager. Bargaining strengths in the city often do more harm than good in these sorts of places.
I now look for higher returns in these places for these sorts of reasons.
My maintainance limit without approval is $500 for this particular town. I may adjust that upwards depending on my trust factor.
Real Estate agents in these towns may do things that a city agent wouldn’t even consider as a possibility.
Good luck,
Anne.
Thanks Anne,
You’ll have to make a post down the track if ya can do any better, i’ll have to do the same.easymoney
Will do easymoney. Anne
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