Well,
Suggo's post about letting fees was very interesting, and I thought I'd post a poll.
Please have a look at my post Duties of property managers
To explain what I believe the duties of a property manager are (Joanna may be able to add to these)
These are the poll options:
1: Standard Method
% of rental per week (usually around 8%) PLUS a letting fee (Usually 1 to 1.5 weeks rent.)
2: Flat rate method
A flat rate for all properties managed by an agent. This would have to be based on roughly the yearly rate of the 80th percentile mark of the properties managed in the area.
For example, if the properties managed range from $180 - $280 per week, then the yearly rate would be based on $260, and would be $1340 per year, which is $25.76 per week. (note, only one letting fee allowed in this calculation).
3: Per hour of service
Every hour the property manager spends they log and charge you. Similar to remunerating an accountant or solicitor.
Based on current property management wages, and office overheads this would have to be around the $150 per hour.
4: Fee per each service
The property manager charges you for each and every service.
For example,
Writing a lease: $50
Signing lease with tenants: $75
Condition report: $200
Paying rates: $10
Checking if rent paid $10
etc...
5: Other
Please feel free to post other methods you feel might work and be fair.
I really hope we get a good response to this poll.
It is a very interesting question, I can't wait to see the responses!
Also, please note all prices above are based on that roughly $260 average rental. Obviously where the rents are much higher or lower the prices would vary accordingly.
Go forth and poll!!
asy
Suggo's post about letting fees was very interesting, and I thought I'd post a poll.
Please have a look at my post Duties of property managers
To explain what I believe the duties of a property manager are (Joanna may be able to add to these)
These are the poll options:
1: Standard Method
% of rental per week (usually around 8%) PLUS a letting fee (Usually 1 to 1.5 weeks rent.)
2: Flat rate method
A flat rate for all properties managed by an agent. This would have to be based on roughly the yearly rate of the 80th percentile mark of the properties managed in the area.
For example, if the properties managed range from $180 - $280 per week, then the yearly rate would be based on $260, and would be $1340 per year, which is $25.76 per week. (note, only one letting fee allowed in this calculation).
3: Per hour of service
Every hour the property manager spends they log and charge you. Similar to remunerating an accountant or solicitor.
Based on current property management wages, and office overheads this would have to be around the $150 per hour.
4: Fee per each service
The property manager charges you for each and every service.
For example,
Writing a lease: $50
Signing lease with tenants: $75
Condition report: $200
Paying rates: $10
Checking if rent paid $10
etc...
5: Other
Please feel free to post other methods you feel might work and be fair.
I really hope we get a good response to this poll.
It is a very interesting question, I can't wait to see the responses!
Also, please note all prices above are based on that roughly $260 average rental. Obviously where the rents are much higher or lower the prices would vary accordingly.
Go forth and poll!!
asy