Are these fees quoted including or plus GST?
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Property Management Fee 8.75%?
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On a $450/wk rent roll (for example) 1% difference in management fees.
7% - $1638
8% - $1872
9% - $2106
Those differences are insignificant compared with the total value of the asset that you are asking folks to take care of. Instead of focusing on the % rate, why not seek out the absolute best manager on the market and ask them to work with you?Last edited by Nick G; 04-02-2016, 11:11 PM.Free online Property Investment Course from iFindProperty, a residential investment property agency.
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Nick G makes a great point.
There is a huge cost difference between good PMs and more ordinary ones.
The great PMs prevent 90% of problems by picking good tenants and actively managing them. Plus they keep rents at market rate.
Ordinary PMs cost you $1,000s by poor tenant selection and being to timid to manage the tenants.
The % fee is nothing when compared to the costs of damage/vacancy/under rented.
Find a good PM (Good luck) - and pay them.The three most harmful addictions are heroin, carbohydrates and a monthly salary - Fred Wilson.
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Higher fees doesn't mean you're guaranteed good service. Plus what is good service? It differs depending on expectations. I've found some P.M.s are better are getting tenants whiles others are better at managing tenants - so there's usually a compromise somewhere.
cheers,
DonnaEmail Sign Up - New Discussions, Monthly Newsletter, About PropertyTalk
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Hey Donna, I didn't say it does... well it might look that way, oops :-| My point was that the difference in management costs is marginal so an investor would be better off to ask around and find a good operator. Cheers
Originally posted by donna View PostHigher fees doesn't mean you're guaranteed good service. Plus what is good service? It differs depending on expectations. I've found some P.M.s are better are getting tenants whiles others are better at managing tenants - so there's usually a compromise somewhere.
cheers,
DonnaFree online Property Investment Course from iFindProperty, a residential investment property agency.
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Nick I wasn't directing my post at anyone - it was just a general comment.
cheers,
donnaEmail Sign Up - New Discussions, Monthly Newsletter, About PropertyTalk
BusinessBlogs - the best business articles are found here
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Originally posted by freeloader View PostHi I currently have one property in Mt Eden being charged for 8.75% fee for less than average service. They basically collect the money. The tenant has been there for years and are no trouble. They do a once a year inspection and I don't get about condition and basically I know about it as there is a reduction in payment one month.
Is this a fair charge for Mt Eden for the level of service? What rates are you getting? Anyone can recommend a better property manager?
Cheers
I would say given what you have mentioned regarding the offerings you get then no that isn't a fair rate for the level of service. There are a lot of PM' in Auckland, the one I would recommend though would be Wendalls
Hope that helpsLast edited by donna; 07-02-2016, 09:39 AM. Reason: removed link - use the CE forum for link sharing pleaseFraser Wilkinson
www.managemyrental.co.nz
Wellington / Lower Hutt / Upper Hutt / Porirua
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Yes and yes. Depends where in Kapati however. We work with Click in Duendin and I think one other, I'll confirm the name. Check what is included and not included in fees. 7.5% PLUS inspections, letting fees, listing fees etc is usually more than 9.5% all inclusive. Often a lot more. You need to confirm what you'll be paying in total and then (my opinion) if the numbers are close enough forget them and pick the best operator.Free online Property Investment Course from iFindProperty, a residential investment property agency.
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