I have an investment property under construction nearing completion, located in South-East QLD. It is a house expected to receive approx. $575 per week.
I am looking for a property manager to manage the letting of the property.
One agent is asking for 110% of one weeks rent as commission upon letting of the property, plus 9.35% of the rent per week.
What is my fellow OzBargainers advice/experiences in this area and much should commission should I be expecting to pay?
Cheers
Those terms are preposterous,
Also its not just what they will charge you for their ‘services’, its how reliable they’ll actually prove to be when you inevitably do have any tenant issues in the future
I’d rather you ask around amongst family and friends if they could recommend you someone that they themselves trust…
Thats how I would do it if I was you
Not sure where in qld you are but thats excessive for Brissy.
One weeks rent plus GST is a standard letting fee, nearly all agents charge this.
Property management fees are higher in QLD.
Eg 5.5% including GST in Sydney but 8.8% in Brisbane and Gold Coast.
I paid 7.7% (gst included) in Ipswich, Queensland since 2005. Not sure about now !
Qld property management is on the higher side, in Sydney apartment is managed for 3.3% and the house for 5.5% inclusive of GST.
Don't fall into the trap for other addon charges which has become the trend in property rentals such as advertisement and marketing fees, lease negotiation fees every six months, lease renewal fee of 1-2 week rentals.
QLD property is managed for 7.7%
Sounds about right, BUT there will be fees above that for accounting and monthly fees etc that you need to watch as this is where they get allot extra and it adds up over the year.
All of the fees are tax deductible as it's and investment property.
Wait till you try to get landlord insurance!!!!
Management fees vary according to area.
My experience of Qld is that around about the 8% mark including GST is most common. The additional letting fee is normal, as is an extra advertising fee and an extra fee for resigning a lease. There are often monthly admin fees too. I always try and negotiate away the resigning fee and monthly admin fee.
Whilst 8.8% and above incl of GST is standard in SE Qld I was able to negotiate 6.6% (incl GST) management rates with my PM due to I having them manage multiple properties for me. Monthly admin fee, EOFY statement included in the management fee too.
Based on your estimated rental $575/week, there is about $800 savings just with management fees alone of compared with what other agency are charging. Feel free to message me if you are keen to know more details or would like a recommendation.
Did you get at least 3 competitor quotes?