Hi,
Just wondering about other ppl's opinions on why the management fee for rental properties in the ACT is so high?
I have an investment property in Canberra where I am charged 11% incGST for the monthly management (as competitive as I could find for a decent real estate agent). However, locally in NSW, it is more like 6-8%.
Hi,
I found that when we first moved here as our investment properties are in QLD and we were paying 7%. I have two in the ACT now and just rang around til I found someone to take out all the fees and charge 10%inc. It was hard to find, and to be honest the other pm's i spoke to were pretty incomptent. I saw a new company Peake Property and met their management and they seem to be keen. They are offering a low 4% rate. I am considering giving them a go.
Cheers
SS
The cost of licensing in the ACT is almost double than in say NSW. In the ACT it will cost an agent $596 for their licence compared to $315 in NSW. This will obviously contribute to the fees charged.
Yes $5.00 a week in additional licensing costs is going to make it easy to justify charging an extra 2% (say $6.00 per week) per property.
On the other hand having a good managing agent is worth a few dollars a week.
In WA the fees are usually 9-10% So not far of ACT either
Have to say, it's so much better in in NSW – I've got a great propery manager and would not give them up even if someone offered to do it for free. Sydney is a much more competitive market, however the costs are not really lower for running a property rent roll.
Bit by bit, competition will push prices lower, but it takes time!Hi FinSpec,
Can i please ask – who is your property manager in Sydney?
Thanks
Hi jtsroberts,
I've just joined this site as I'm looking for other investors / real estate agent's etc to network with.
By way of introduction, my partner and I own 6 investment properties in Canberra, and we also own a real estate agency called LIVEin
Our property management division currently manages 290 properties, and we charge 7% management fee's, while utilising professional photography, high definition video tours, and the assurance of having the same property manager for life. We have only lost 2 clients (both of which we disengaged).
I don't mean to highjack this thread with self-promotion, but I completely understand your position in being frustrated at the huge fee's charged by property managers in Canberra, whilst not giving the best level of service.
To the moderator – I apologise if this is outside of the rules and regulations, please be assured that I am not in the habit of self-promoting, and can assure you this won't be a continuing theme.
Property investment is close to my heart, and I am frustrated for investors at paying high management fee's.
I would obviously be delighted to discuss further with you, so please visit http://www.livein.net.au to see how we do things differently
Cheers
Erik Tyler – Managing Director, LIVEin
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