Just an update on my original question. I queried the agent about the 12.5% plus other costs. Apparently a clerical oversight. I have resigned at 12.5% all inclusive except for court appearances. I am vey happy with the PM which means no headaches thus far. The numbers works in my favour if the turn over is less than every 18 months. Thing is I have a great tenant, a good PM so happy to sit back and pay the 12.5%
Management fees in WA?
- Thread starter Paul j F
- Start date
You missed $7/key key cutting, so for 10 keys you may pay $60 for the keys, plus another $70 on top -ouchHere's a list of types of Fees some companies may charge
- Management Fee
- Letting Fee
- Advertising Fee
- Photography Fee
- Property Condition Report Fee
- Lease Renewal Fee
- Routine Inspection charge
- Bond Inspection Fee
- Database Check Fee
- Tribunal Attendance Fee
- Insurance Claim Processing Fee
- Annual Statement Fee
- Disbursement Fee
- Special Payment Fee
- Maintenance Fee
I guess for additional annual costs you can add in smoke alarm complaince checks and maintenance, maybe a plumber every six months to checks the hot water system pressure relief valve, annual clearing of the gutters
Then you may have repairs required in any given year
Have I missed any
And % of all water usage bills, and all other collections from tenant damage, court fees, etc
12.5% is really on the high end. From what I've seen with WA property managers, they are generally around 8 - 8.8%. In remote areas or challenging places, the management fee can be higher.
Nonetheless, if you're happy with the service at 12.5%, then that's your call. Personally, I'd probably be okay with it too if the service is good and reliable, and the cashflow is still worthwhile regardless of the increased management cost
Nonetheless, if you're happy with the service at 12.5%, then that's your call. Personally, I'd probably be okay with it too if the service is good and reliable, and the cashflow is still worthwhile regardless of the increased management cost
Hi Redwing
We get $550/WK and on a standard 8% agreement total fees (break down below) add up to around $4050 p/yr which is just over 14% based on a tenant every 12 months but they whack on 3/4 week rent for lease renewal if the tenant stays on anyway.
Management @ 8% x 52wks = $2288
Letting fee 1.5 x rent = $825
Cond. report = $165
Final bond inspection = $88
Routine inspection reports (4 p/yr) =$220
FY tax report = $60
Postage/admin $8/mth x 52 = $416
I know these may vary from agent to agent but as I said.. I have a good agent!
We get $550/WK and on a standard 8% agreement total fees (break down below) add up to around $4050 p/yr which is just over 14% based on a tenant every 12 months but they whack on 3/4 week rent for lease renewal if the tenant stays on anyway.
Management @ 8% x 52wks = $2288
Letting fee 1.5 x rent = $825
Cond. report = $165
Final bond inspection = $88
Routine inspection reports (4 p/yr) =$220
FY tax report = $60
Postage/admin $8/mth x 52 = $416
I know these may vary from agent to agent but as I said.. I have a good agent!
That's a bit rich! All that, for a letter of renewal, new lease docs and a few phone calls?????
Wow!
for those interested, LJ Hooker;
9.35% + $8.8/month postage and petties
routine inspection $55
final bond inspection $77
annual financial summary $30
leasing fee 2x rent
property condition report $110 (3 bed)
I have thought of switching, but found they are all very similar, if the management fee is lower, the other costs are high, and vice versa.
though obviously depends on your rent, mine is on the low side of $350/week
9.35% + $8.8/month postage and petties
routine inspection $55
final bond inspection $77
annual financial summary $30
leasing fee 2x rent
property condition report $110 (3 bed)
I have thought of switching, but found they are all very similar, if the management fee is lower, the other costs are high, and vice versa.
though obviously depends on your rent, mine is on the low side of $350/week
Some do a Final Bond Inspection (outgoing) and a Property Condition Report (ingoing)
Hi Paul
My name is Mandy and I am from sellmycastle.com.au. We provide a free online service that allows landlords to compare property manager's fees and commission in their local area. We have over 4,000 agents registered to the service across Australia.
For the quarter of April - June 2012, the average commission charged in WA was 9.13%, with the average national being 7.10%. Keep in mind this varies depending on where your property is located and is always negotiable.
Feel free to register your property on www.sellmycastle.com.au to compare your local property managers.
Good luck!
My name is Mandy and I am from sellmycastle.com.au. We provide a free online service that allows landlords to compare property manager's fees and commission in their local area. We have over 4,000 agents registered to the service across Australia.
For the quarter of April - June 2012, the average commission charged in WA was 9.13%, with the average national being 7.10%. Keep in mind this varies depending on where your property is located and is always negotiable.
Feel free to register your property on www.sellmycastle.com.au to compare your local property managers.
Good luck!
Have I missed any
I'm about to rent out my place and just got the local PM out today, got the fee schedule in front of me now
Apparently in addition to your already extensive list, there's also:
Court Filing Fee
Title Search
To Let Sign (separate from advertising fee!)
Credit Check Fee
Special Water Reading Fee
Supervision of Major Works/Attendance at Strata Meeting
Assuming a tenant turnover of once in 12 months, my fees will total over 15%. Now that I've picked myself up off the floor, I think I'll be pushing for an all inclusive 12%. Has anyone managed to negotiate an all inclusive lower than this?
