Hi All
I know there has been a lot written about how much Perth Real Estate agents are ripping off landlords with high property management costs but does anybody know about any formal complaints having been made to Fair Trading or local members of parliament etc.
I see enough evidence on Whirlpool and other sites to suggest there is a consistent feeling on this problem in WA.
Its a free market economy. No ones ripping anyone off. You’re free to self manage if you don’t want to pay the cost, or to shop around for best price you can find. Also, price doesn’t always correlate with service.
I’ve done extensive research on opening an agency in both Perth and interstate. And despite Perth charging a heap more, I believe interstate would be more profitable. Perth staff are expensive, Perth office leases are expensive, the bottom line isn’t any better despite charging more.
D.T. | DT Property Management
http://www.dtproperty.com.au
Email Me | Phone MeAdelaide Property Management - whole Adelaide metro
What sort of management fees are we talking?
I would have thought that the Perth market would be large enough to fuel competition.
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]
Collusion – ACCC should be the point of call.
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
What sort of management fees are we talking?
I would have thought that the Perth market would be large enough to fuel competition.
Cheers
Jamie
Heaps of places in Perth charge 9.35% + GST + 2 weeks letting fee + monthly admin fee + yearly fee + condition report fee + inspection fee + tribunal fee + lease renewal fee + bum scratching fee + GST on all of the above
D.T. | DT Property Management
http://www.dtproperty.com.au
Email Me | Phone MeAdelaide Property Management - whole Adelaide metro
Market economy, as DT has mentioned – if there is the potential to open an agency running on lower margins as their point of difference, it will most certainly emerge. Some of the business administration costs in WA are quite high.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Heaps of places in Perth charge 9.35% + GST + 2 weeks letting fee + monthly admin fee + yearly fee + condition report fee + inspection fee + tribunal fee + lease renewal fee + bum scratching fee + GST on all of the above
[/quote]Sounds similar to Canberra – apart from the 2 weeks letting fee, I think it’s usually one week.
As mentioned above – the market determines price and Perth is too big for PM’s to collude.
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]
Thanks for the responses
I’m collating some facts V Sydney I’ll provide soon
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This reply was modified 9 years, 10 months ago by
TheBish.
Here are the charges – Perth v Sydney
Charge Perth ~ Sydney
Letting Fee 2 Weeks + GST ~110% of Weekly Rent
Agreement Fee Nil ~ $16.50
Management Fee 9.35% ~ 7.70%
Admin Fee pm Nil ~$5.50
Inspection Reports $49.50 ~Nil
Final Inspection $99 ~ Nil
Property Condition $220 ~ Nil
Fixed Lease Renewal $55 ~Nil
To Let Sign $44 ~ Nil
Inventory Report $165 ~NilHad to stop typing up the Perth charges – felt RSI coming on.
Did somebody say charges are higher in Perth because of salaries – just did a quick look in Seek – Sydney v Perth.
Its very consistent the average Property Manager in both cities is paid about $70k – its very consistent across many adverts on Seek.
Any body got any other excuses for the price difference?
I don’t understand what you’re getting at. If you don’t like the price of the service shop around til you find one you do. Or self manage. Or if you think they’re making a fortune, join them :)
D.T. | DT Property Management
http://www.dtproperty.com.au
Email Me | Phone MeAdelaide Property Management - whole Adelaide metro
I think the problem in WA is that the price has somehow come out at that level and all the players are just keeping the status quo – If your competition is charging high prices you can too. All it would take is one or two new entrants to come in at national prices and then market forces would come into play.
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
What I’m getting at and the evidence is clear for all to see is landlords in WA are getting ripped off compared to other parts of Australia.
So, what do we need to do about it?
Firstly, landlords need to negotiate – use the eastern states numbers as the lever and when the agents say costs are higher then over east then tell ’em that just aint true – refer my salary stats $70k for a PM – same as on the east.
Run Property are coming in the next 12 months or so – competition is coming.
Shop around – don’t just suck it up!
Bish – look at it as an opportunity. You’ve identified a flaw in the market – introduce a lower cost PM service on the West Coast. Instead of fighting it – capitalise on it :-)
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]
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This reply was modified 9 years, 10 months ago by
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