I think if the question is asked the answer will be .... 'it's the way it's always been charged' ...... it just doesn't seem logical thats all.... easy, yes, but not logical. I found a PM who comes well recommended who charges less than 8.5% so will give that a go for a while and see how we go.
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Originally posted by Auckland Newby View PostHi P'investers,
We own a rental on the North Shore, new house low maintenance, rent out at $720 pw. Current PM charges 8.5%+ GST and did a good job in getting a new tenant once the other one moved out. The property was open for 1 day. This is a low maintenance property from a repair and tenant turn over point of view. Is there room to negotiate on fees? We both work full time so don't want to manage this property ourselves. Anyone know of a PM that is cheaper than this but still does a decent job?
Cheers
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Originally posted by Auckland Newby View PostHi P'investers,
This is a low maintenance property from a repair and tenant turn over point of view. Is there room to negotiate on fees?
Cheers
3 I discounted fees at 1% the other 2 %. Great quality tenants signed up for 1-2 years, rent is $30-$40
more than for an older house. Less work involved, little maintenance issues, high tenant demand so are prepared to
discount. Find an independent company in your area that is is flexible and can offer a personalised service.www.focuspropertymanagement.co.nz
Property Management Tauranga & Bay of Plenty
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Oracle Property Management - full service at 6.5% + gst including advertising, entry inspections for all tenancies including photo set of 200-400 photos establishing the condition of the property, no further fees apart from 6 monthly inspections ($46 each). No rental arrears or vacancy at this point in time.
Thanks.
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I think it's a valid question you ask. You should definitely be able to negotiate. Why should you be getting charged $68.42 per week (8.5+gst x $700) when someone else with a older house, requiring more work, is charged $37.15 per week (8.5%+gst x $380). You are subsidising their property's management fees!
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Originally posted by Auckland Newby View PostI found a company that charges a flat fee irrespective of rent and all seems to be going well so far. Inbox me if you want the details.
Fixed fees don't make much sense. Would you put your investment of $10,000 shares with a fund manager who charges a fixed fee, irrespective of performance? Would you put your property investment of $500,000 with a company that charges fixed fees irrespective of performance?
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Originally posted by Auckland Newby View PostWhat kind of perfrormance are you expecting for your property other than annual rent increases in line with the market and that it is fully tennanted? It's not as if you're going to get a better return if you pay more management fees.
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Originally posted by chrisrussell View PostYou'll be hard placed to find another investment class that has fixed fees.
It doesn't matter what the value of my share / bond portfolio is.
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Originally posted by speights boy View PostMy sharebroker charges me a fixed annual fee for their advise and services, (apart from normal buying or selling).
It doesn't matter what the value of my share / bond portfolio is.Last edited by chrisrussell; 12-11-2014, 08:56 AM.
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Originally posted by chrisrussell View Postso no performance bases commission?
I pay for advice and certain services.
They don't decide where my money is invested, that remains my decision.
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