Quinovic in Wellington Puts Up PM Fees!

[ChiefWigum]

Hi there,

Would be interested in other peoples' opinions or thoughts on Quinovic in WGTN (Thorndon). They just sent me a letter saying that they are increasing their fees to 8.5% plus gst, plus an extra $10/month 'admin' fee due to their "clients' valued comments"!

They seem to be pretty good but I'm quite p-off that they can do as they please because I'm not in NZ to manage this myself. I'm now looking at an alternative property manager out of principle. I'm happy to phone around etc and 'interview' by phone.

Would be interested to know of anyone else's recommendations for a trustworthy PM in the Central WGTN area, or their opinions/stories of Quinovic.

Thanks.

[Dean@Massiveaction]

Hi chief, can't help with Wellington but generally hear good things about Quinovic. But I think 8.5% is very high. If you have more than one property 6% is common in Auckland. I pay 4% but have quite a few IP's

[Stevegoodey]

Hi Chief,

I think Quinovic Thorndon has just changed hands that may be the reason for the price increase.

My recommendation for a new manager would be Jarod Dove of Dove property management.

He is contactable as Jarod here on PT.

Or on (021) 769 672

Jarod takes care of 8 of my tenancies and I have no problem at all recommending his services.

Cheers
Steve

[ChiefWigum]

Thanks for the replies, it all helps. I've been away for a while so couldn't reply until now. Will probably give Dove Prop Mgmt a call.

Thanks.

[Kiwi_Investor]

Hi Chief & all. I use Quinovic in Lower Hutt to manage my IP and I got the same letter !!
Increase to 8.5% and a $10 admin fee per month. I wrote to Principles to ask what/why and said the admin fee was a big jump from 0 to $10 !! Considering they have not phoned me and most contact is via email.
I asked to negotiate a $5 fee but no dice, apparently the fees were upped by head office ?? in return they are not charging for any inspections, includng a final one.
So now I am going to mail the Principal and ask what the 8.5% covers !! Not happy either, but generally they have been good, although sometimes communication is lacking!!

KI

[Jarrod]

Hi ChiefWigum and Kiwi_Investor.
Thanks for the generous recommendation Steve. Must be those L'Affare lunches.
I am always happy to discuss my Property Management setup, systems, style and of course rates. I might get in trouble publishing them outside of the "commercial" threads but here goes.
7.5% of rents recieved. This encompases all day to day management duties i.e. admin, rent collection, monthly statements, organising maintenance, overseeing and confirming of tradesmens work standard, HANDLING AND PAYING MAINTENANCE AND ADVERTISING BILLS, fixing the odd leaky tap, the occasional lunch at L'Affare,tenant selection and signing up.
I charge an extra $25 per property inspection, part of which goes to the tenant in the form of a pizza or video voucher if the place is up to standard. Call it black mail but its a great way to get tenants to put a bit of effort in every three months.
Look fwd to hearing from you.

Jarrod Dove
Dove Property Management
Mob: 0275858484
Ph/Fax: 389 5606
[email protected]

[Kiwi_Investor]

Hi Jarrod, thanks for your reply.

One of the main advantages with Quinovic is that I can access the website and check information relating to my property in real time, eg up to date statement info, inspection reports and photos. For me this is vital due to the fact that I am located in Australia. They have been prfessional to deal with and although I have had the odd issue generally my dealing with them has been good. They have also wavied any inspection fees, which almost evens out the admin fee over a 12 month period.

Regards

KI

[Glenn]

I put my rates up for new clients about 12 months ago to 8% and have had nothing but positive response. If the service is good people do not seem too worried about the cost.
Some people will always want the cheapest.
I had one client ring last week saying he was very upset about having to pay $30 for an inspection at the end of a tenancy. I pointed out to him we had been charging him that rate for the last 5 years. Over that period I had brought in 260 weeks of rent. Really some people are never satisfied so I sacked him. Told him to find another property manager.

[Propoholic]

I think you've got to compare apples with apples in the property management market. An REINZ rental office is not on a level playing field with the likes of Quinovic or Glenn Morris.

I have got sad stories as long as your arm of REINZ letting agents in Auckland charging 7.5%+GST. You haveto look at the real cost of these contracts ie under rented, number of weeks untenanted, lost rent, unsuitable tenants etc. Does your property manager complete a detailed check off of project work completed ie above $1000.00...I dont think so. How about the $4500.00 painting job that was let through your property manager, how was this signed off?? Did you get $4500.00 of value or $3500.00 or $2500.00? Does your PM hold back money from the contractor untill the work is completed satisfactorally?? Have a think about the above scenerios, they can make your 7.5%+GST look quite sick!

I dont use a property manager but would be happy to pay 8,9 or 10%+GST to a top performer.

[Kiwi_Investor]

Glenn, that was an interesting post. You are right not everbody wants the least expensive option ( I don't like using the word 'cheap'!).
What a gusty call to sack your owner !! But maybe a good call, as you say some people are never satisfied !

Regards

KI

[Glenn]

What a gusty call to sack your owner !! But maybe a good call, as you say some people are never satisfied !


KI

Property owners want us property managers to be able to handle difficult people. When the same skills are used on them they usually turn into jelly. Why should they be surprised. A hard job requires a .....

[donna]

'Hands On' Property Management have been recommended to PropertyTalk and they have a listing in our Directory - check them out here:

http://www.propertytalkdirectory.co.nz/profile30-36-30.html

Cheers,

Donna

[tamara]

HI

I agree with Propoholic. I have been in the position of ceasing the contract of a REINZ PM and while I know pay just a little more I have execellent property managing services and my properties are cared for as if I was living in them.

It is well worth paying the little more.

Tamara

[roseneath_rat]

8%+ does seem high to me, especially if its non-negotiable even for clients with multiple IPs. That must make a big dent in yield/cashflow.

Are any of the other major property managers changing their fees?

Is this perhaps because there has been only organic growth in rents over recent years?

[Propoholic]

Hi roseneath _rat

8%+ does seem high to me, especially if its non-negotiable even for clients with multiple IPs.

Why do you think 8%+GST is high?? Perhaps it is because the local LJ Hooker, Harcourts or Ray White offices typically charge 7.5%+GST for property management??? You'll need to decide what you require from a property manager rather than the local real estate agents promise of a monthly statement and 'we'll find you a good tenant.' Read all Glenn's threads on PT and you'll get a feel for a property manager's lifestyle.

To get your pound of flesh out of your PM you'll want someone who is a mix of project manager, maintenance manager, bush electrician/plumber/carpenter/painter, interior decorator and hard debt collector all in one. A bit of weekend moonlighting and after hours surveillance is also required. Wearing of lipstick, nail pollish and high heels is not a pre requisite for the above role.

I made a purchase three years ago of a bungalow conversion in Mt Albert, the property had been managed by Barfoot and Thompson in Mt Roskill. The vendor is a close friend so I had all the history on maintenance/renovation and tenant problems. It was during my due diligence stage that all the bad management, increased wear and tear and letting to inappropriate tenants really came out. The PM (at client's request) had in the previous two years put new carpet, wallpaper & paintwork through the two bedroom flat. After two years, the new carpet was covered with various stains and the property manager had no plan to charge the tenants for new carpet/cleaning. There were various cases of advanced rot in the floor boards throughout the house! The result of mismanagement like this is poorer quality tenants, rents substantially under market, disproportionately high maintenance/management & softer valuations...but higher yield. All great for the investor!

The property manager in question disclosed to me that the tenants & other clients were doing his head in and the company had enrolled him in therapy....true story. PM shortly after left that position to move across town and become a PM in another office......same company though! This PM was charging 7.5%+GST.

In Auckland I consistently find that REINZ managed properties are a minimum of $20-$30pwk under the market ie $1000-$1500 per year. Another 1%+GST fee on a $300 pwk property is $150+GST per year. Even at 9.5%+GST its a no brainer if your rents are kept at market, carpet looks very good after five years and your $5000 paint job lasts for ten years.

Does 8%+GST seem high?

Dont bench mark Property Management fees based on what Ray White and LJ Hooker charge.