Property Management

[Auckland Newby]

Hi 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

[BigDreamer]

I am not familiar with Auckland PMs so I can't help you there. However, from experience with working with other PMs they generally only agree on a discount to their rate if they property manage more than ~2 rentals for you.

[Viking]

Do you give a discount on your work?

[Auckland Newby]

Yes I would if common sense prevailed that I was charging a customer too much compared to others based on the amount of work required.

[Keys]

Define "amount of work required".

You never see all of the work a PM does.

[Auckland Newby]

I know that a PM does a lot of work and there is a lot of value in having one. The service that we have received has been good.

With regards to 'amount of work required' .... Due to 8.5% of $720 = $61.20 p.w. or $3182.40 pa - New house so very little maintenance issues to sort out. Other older houses in area rent of $630 x 8.5% = $53.55 or $2784 pa .... does it make sense to charge the newer property more fees than the older one?

[Arpoo]

Hi 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

Give David Pearse from Pukeko Rental Managers a call on . He specialised in Property Management only and looks after North Shore 027 480 9534. Great to deal with.

[Keys]

does it make sense to charge the newer property more fees than the older one?

Then take up your discussion with your local council on rates demands. The property receives nothing more than a cheaper property yet the owner pays more in rates. Just the first thing which popped into my head.

[Auckland Newby]

Hi Keys

I'm not sure what relevance the cost of rates has to do with what a PM charges for his/her services. I'm sure a bottle of 1921 Dom Perignon costs a lot more than a 2014 Lindau but again not sure on the relevance to PM costs.

[Keys]

does it make sense to charge the newer property more fees than the older one?

You indicate that there is an imbalance because of the value of the property. New is usually more expensive than older (in your example).

I merely pointed out that rates are based upon value of properties. Each house in a particular street pay different rates depending upon their value. They receive exactly the same benefit. I base the comparison on that. Should every ratepayer pay exactly the same? Should every rental pay the same for management?

Those are the questions both you and I put.

[Auckland Newby]

ah okay go you! fair comment!

[speights boy]

Those are the questions both you and I put.

The way I understood newby's question was, why does the PM generally charge more for managing a $700pw property over a $600pw property ?

Similar in some ways to the discussions and complaints over REAs generally charging more to sell a 700k property over a 600k one.

[Auckland Newby]

Speights boy you're onto it!

[Keys]

And I ask the question. Why are rates charged differently on properties which receive the same benefits?

[speights boy]

And I ask the question. Why are rates charged differently on properties which receive the same benefits?

Perhaps it's an easy and lazy way for the council to gouge the homeowner.
I don't really know.

Newby's question was around PMs I believe.