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  #1  
Old 03-09-2012, 02:21 PM
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Wirra436 Wirra436 is offline
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PM fees western australia

Is it just me, or are WA PM fees high?

Every IP I have owned , I have used a PM only because I work away and finding the time to do the running around and doing tenant checks, also if there was an issue with the property it can be dealt with quickly etc I felt it was easier and less hassling to pay someone a fee to do this for me.

Recently purchasing an IP in Perth, well im starting to think Im better of printing off a REIWA lease agreement, taking some pictures/advertising, having landlords insurance and doing this myself.

On a $500pw property , looking at approx $310-$350 P/month in fees.
Letting Fees, Leasing fees( 2weeks rent), Management fees, Inspections etc
or all inclusive for around 17% (ray white)

what are other peoples experience with this, is it a case of dry the eyes princess and welcome to IP in WA? or have other investors done the work themselves and what were some outcomes?

Any input appreciated.

Cheers

Wirra
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Old 03-09-2012, 05:05 PM
ipinvestor ipinvestor is offline
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4 properties, average 12.16%

Prop 1 : Rent $14965, Mgt fee $2288
Prop 2 : Rent $18640, Mgt fee $2147
Prop 3 : Rent $15359, Mgt fee $1718
Prop 4 : Rent $17135, Mgt fee $1887
_________________________________
Total rent received $66099, Mgt fee paid $8040 (including gst & postage)
It is approx 12% of income.
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Old 03-09-2012, 05:42 PM
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Wirra436 Wirra436 is offline
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Quote:
Originally Posted by ipinvestor View Post
Prop 1 : Rent $14965, Mgt fee $2288
Prop 2 : Rent $18640, Mgt fee $2147
Prop 3 : Rent $15359, Mgt fee $1718
Prop 4 : Rent $17135, Mgt fee $1887
_________________________________
Total rent received $66099, Mgt fee paid $8040 (including gst & postage)
It is approx 12% of income.

Rent $24,000 Mgt Fee $ 3900 approx 16% of income?

I am including the Lease Fee and Letting fees. If I take them out we are around the 12%

Are you going through a real estate agent? or an IP management company?

I have checked with 5 PM's so far all around the same rates.

like i said , could be a case of " dry the eyes princess" haha
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Last edited by Wirra436; 03-09-2012 at 06:01 PM.
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Old 03-09-2012, 06:08 PM
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I get 8% and 1 week letting fee - southern suburbs. And I've heard of other agencies with even better deals.

There are some around the place.
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Old 03-09-2012, 08:00 PM
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Quote:
Originally Posted by Wirra436 View Post
Is it just me, or are WA PM fees high?

Every IP I have owned , I have used a PM only because I work away and finding the time to do the running around and doing tenant checks, also if there was an issue with the property it can be dealt with quickly etc I felt it was easier and less hassling to pay someone a fee to do this for me.

Recently purchasing an IP in Perth, well im starting to think Im better of printing off a REIWA lease agreement, taking some pictures/advertising, having landlords insurance and doing this myself.

On a $500pw property , looking at approx $310-$350 P/month in fees.
Letting Fees, Leasing fees( 2weeks rent), Management fees, Inspections etc
or all inclusive for around 17% (ray white)

what are other peoples experience with this, is it a case of dry the eyes princess and welcome to IP in WA? or have other investors done the work themselves and what were some outcomes?

Any input appreciated.

Cheers

Wirra
Hi Wirra

1. What's the actual fees in dot point?
2. You can do better

Fees are negotiable, you'll also find the more IP's, the more leverage
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Old 03-09-2012, 11:33 PM
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Fees, I will put down two examples:

Management fee: 8.5%+GST.
Letting Fee: 2 weeks rent
Lease renewal: 1 weeks rent.
Inspections: $55
Bond Inspection: $93.50
Postage/Petites: $8.25
Property Condition Report: $165
Marketing: $99


Management fee: 9.35%
Letting Fee: 2 weeks rent
Lease renewal: $110
Inspections: $66
Bond Inspection: $110
Postage/Petites: $10.25
Property Condition Report: $200
Marketing: $70

with other small costs here and there, works out both to around 16% of income if you include the letting fees, and around 12% without.

other places differ here and there but all end up around the same mark.
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Old 04-09-2012, 07:07 AM
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Quote:
Originally Posted by Wirra436 View Post
Fees, I will put down two examples:

Management fee: 8.5%+GST.
Letting Fee: 2 weeks rent
Lease renewal: 1 weeks rent.
Inspections: $55
Bond Inspection: $93.50
Postage/Petites: $8.25
Property Condition Report: $165
Marketing: $99


Management fee: 9.35%
Letting Fee: 2 weeks rent
Lease renewal: $110
Inspections: $66
Bond Inspection: $110
Postage/Petites: $10.25
Property Condition Report: $200
Marketing: $70

with other small costs here and there, works out both to around 16% of income if you include the letting fees, and around 12% without.

other places differ here and there but all end up around the same mark.
Geez Wirra, that's steep either way you look at it

Property Managers from other states must salivate at that, or think how are they getting away with it?

With the Management Fee 8.5% + GST is 9.35% in the second example anyhow

We don't pay 2 weeks Letting fee on any of our WA Properties. Letting fee's used to be equal to 1 weeks rent for the tenant and 1 weeks rent for the landlord. When letting fee's, as charged to tenants, were abolished in 2007, many local PM's thought it best to hit the landlord up for the fee, rather than miss a weeks worth of cream, and many landlords accepted it.

Your whole list above is negotiable including inspection periods, after all whats the difference between an inspection every three months (standard in WA) or every four months?

Postage & Petties, I think email and the management fee should cover that?

With regards to fees, there have been some great posts on the forum about companies who teach property management firms how to milk every last drop

Having investments in other states brings a dose of reality, as they say, WA is Property Management (Fee) Heaven
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  #8  
Old 04-09-2012, 08:01 AM
Doovalacky Doovalacky is offline
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There has already been a few threads on this matter.

I pay only $150 a month with most of those fee's excluded.
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Old 08-09-2012, 04:27 PM
James_Benson James_Benson is offline
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Yes Perth is a rip off.

I have had managers in Perth charge very similar fees for very bad levels of service. It seems they charge for everything, including a monthly sundry fee for telephone and letters! Wtf?

This is in contrast to Melbourne where I pay a flat fee of 5% and that's it! Everything else included and the service couldn't be better.

WA needs a wake up call.
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Old 08-09-2012, 08:00 PM
Rolf Latham Rolf Latham is offline
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Quote:
Originally Posted by James_Benson View Post

WA needs a wake up call.
Hi James

well,get to it and find some business partners


there is obviously significant money to be made and better service to be offered.

Its my view that in most things in OZ,we have a reasonably efficient market

If someones pricing is exploiting an area, then someone new will fill that gap pretty quickly

ta
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  #11  
Old 08-09-2012, 08:27 PM
Paul j F Paul j F is offline
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I am paying a flat rate of 12% all inclusive.

More info on this thread I posted recently...
http://somersoft.com/forums/showthread.php?t=80808

Agreed that WA is excessive but what can you do except get the best deal you can..?
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Old 08-09-2012, 09:29 PM
shuggy shuggy is offline
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It's amazing no-one in WA has stepped up to open a property management service and undercut everyone. They would cream it if they charged a flat 10%. Rent roll of 200 properties rented for average of $400pw gives annual income of $416,000. Employ 3 property managers to work from home on $60k each a year and pocket the rest. I pay 4.4% in Melbourne, 6.6% in Queensland and 8% in Thailand for all inclusive service and these guys all have offices.
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Old 08-09-2012, 09:46 PM
Dazz Dazz is offline
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Originally Posted by shuggy View Post
It's amazing no-one in WA has stepped up to open a property management service and undercut everyone. They would cream it if they charged a flat 10%.
Hahaha....that was our business idea about 10 years ago.

We thought there's something 'right' about charging a flat 10% fee....no more to pay, no list of 15 charges.....all those pi22y little charges to actually do something over and above the PM fee, which seems to be the cake, and then they charge you extra if they actually do anything.

It didn't fly....you haven't taken into account all of the costs and whinging. The wife got her PM ticket, but that's no good....without a full blown tri-ennial certificate you can't start up a business.

Upon further inspection, it was a farce so we dropped it.

Flat 10% does not "cream it."

Last edited by Dazz; 09-09-2012 at 06:00 AM.
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Old 09-09-2012, 04:58 AM
thatbum thatbum is online now
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Quote:
Originally Posted by shuggy View Post
It's amazing no-one in WA has stepped up to open a property management service and undercut everyone.
I was looking to try and do it but unfortunately I would have needed a full license and triennial certificate even for just a PM business.

Too expensive just for that.
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Old 09-09-2012, 09:18 AM
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Quote:
Originally Posted by ipinvestor View Post
Prop 1 : Rent $14965, Mgt fee $2288
Prop 2 : Rent $18640, Mgt fee $2147
Prop 3 : Rent $15359, Mgt fee $1718
Prop 4 : Rent $17135, Mgt fee $1887
_________________________________
Total rent received $66099, Mgt fee paid $8040 (including gst & postage)
It is approx 12% of income.
With the last Financial Year and looking at Agents Expenses from Total Income it worked out to be 12.35% for us
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Old 09-09-2012, 09:23 AM
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Quote:
Originally Posted by ipinvestor View Post
Prop 1 : Rent $14965, Mgt fee $2288
Prop 2 : Rent $18640, Mgt fee $2147
Prop 3 : Rent $15359, Mgt fee $1718
Prop 4 : Rent $17135, Mgt fee $1887
_________________________________
Total rent received $66099, Mgt fee paid $8040 (including gst & postage)
It is approx 12% of income.
Wow, that really adds up! So you probably earn about $12,000 in wages gross to pay the $8,040?
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Old 09-09-2012, 09:26 AM
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Quote:
Originally Posted by thatbum View Post
I was looking to try and do it but unfortunately I would have needed a full license and triennial certificate even for just a PM business.

Too expensive just for that.
Somersoft member Quicklearner, from Investors Edge did actually take the plunge

Magnum also posted this

Quote:
Originally Posted by Magnum9 View Post
There is one in the Northern Suburbs called Flick Realty advertising 5.5%
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