All Topics / Creative Investing / IP Management Services Fees

Viewing 4 posts - 1 through 4 (of 4 total)
  • Profile photo of King of the CastleKing of the Castle
    Member
    @king-of-the-castle
    Join Date: 2006
    Post Count: 8
    August 31, 2006 - 11:23 am

    Hi All,
    I just have a quick question about investment property management fees.

    I was told that real estate agencies are legally allowed to charge up to 7.45% of total rental income? Is this correct?
    If so, this seems like a lot to me.
    Is anyone willing to disclose how much he or she pays in management fees?
    I would like to factor in an accurate percentage into my financial plan.

    Would anyone be interested in management services offered by a non-realestate company at a lower rate?
    This would include management of everything that a real estate agency offers and more, from dealings with the bond board to sourcing inexpensive tradesmen for maintenance issues.
    [king]

    Profile photo of XeniaXenia
    Member
    @xenia
    Join Date: 2002
    Post Count: 1,231
    August 31, 2006 - 11:43 am

    Agents can legally charge ALOT more than 7.45%!

    Cheaper property managers are not always the most cost effective!!!!

    Property managers who are also investors can offer what you are talking about [biggrin]

    The trick is to find a property manager who has their own property portfolio and can think outside the square with regards to maximising returns on investments.

    What do you mean by non-real estate company? If you are dealing with other peoples money ie collecting rent, you need a trust account that is regulated and audited every year. It is illegal to hold money on behalf of other people in your own bank account.

    To open up a trust account and be able to act on behalf of vendors for property transactions including property management, you need either a real estate license or a law degree

    sorry but that’s just the law [biggrin]

    Investment Property Management
    http://www.adprop.com.au

    Profile photo of King of the CastleKing of the Castle
    Member
    @king-of-the-castle
    Join Date: 2006
    Post Count: 8
    August 31, 2006 - 12:41 pm

    Wow, with all the annual fees that are required to successfully maintain an IP it’s a wonder that anyone breaks even, let alone being positively geared.
    It’s almost enough to be turned off real estate as an investment option.

    I suspected that a property management company would be bound by those laws that apply to trusts and other financial services.

    Thanks for your feedback Dr.X.
    [king]

    Profile photo of XeniaXenia
    Member
    @xenia
    Join Date: 2002
    Post Count: 1,231
    September 1, 2006 - 1:08 pm

    If you find a property manager who can successfully manage your property (that includes alot more than just finding a tenant and signing a lease), then you can use your free time to be looking for the next property deal rather than managing existing properties.

    That’s the whole idea, leveraging from other peoples time [biggrin]

    Investment Property Management
    http://www.adprop.com.au

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