Hi all. I am about to become a first time landlord by renting my current 2 storey 4 bedroom house in central Frankston Victoria as I have bought another property to live in. My question is about the property management fees. I have been quoted by real estate agencies, property management fees between 6.6 – 9.9% per annum. 9.9% means you pay no other fees except a letting fee for a new tenant. Anything under 9.9% and you pay extra fees for marketing, photos, monthly statements, etc.
How much should I be paying for Property Management Fees? Thanks!
Hi there
Welcome aboard.
The price you pay for a PM will differ widely depending on the location.
For instance, in Canberra – you'd be paying around the 10% mark so anything in the 6's is dirt cheap for us ACT folk!
You need to crunch the numbers on the 6.6% plus fees and work out how much it will cost per annum in comparison to the 9.9% without fees.
Also, don't just shop for the "cheapest" – quality is important here. A good PM is an important part of property investing. No point having a sub-standard PM that's not proactive with letting your property and regularly increasing rents all for a few dollars savings each month.
The question I'd be asking here is "who can recommend a good PM in Frankston"
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi Humey,
Remember with the fees, the prices are negotiable.
When you find a property manager that you can work with, that you think will take care of your property well and take care of your interests as a landlord then don't hesitate to negotiate.
The only thing to remember is that even 10% of $300 is only $30 so it's not like the property managers are taking big bucks!
Generally around the 7.7% mark is ok. Then the additional costs come on top. Just do all the maths prior to saying yes, then you'll be well informed.
Good luck, don't hesitate to ask heaps of questions.
Cheers
D
DWolfe | www.homestagers.com.au
http://www.homestagers.com.au
Email MeThanks Jamie, that's really helpful. And what a great question to ask, I had to laugh because it seems so obvious. Cheers.
Thanks D! I have started to crunch the numbers and work out total annual fees and it makes sense that paying a little more for a good PM would be well worth it.
One thing I am good at is asking lots of questions, although it is interesting the answers you get. I asked one agency how experienced their property managers are? They then proceeded to tell me what good nice people they are. When I asked again I discovered they are all fairly new with not much experience.
Cheers
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