PROP. MANAGEMENT QUOTES

[dagsnobody]

Howdy

im after quotes on property management.(New Zealand prices)

Is generally a percentage of the rental income p/a?
what other fees are to be expected, such as maintainence/rates etc?
Any other info would be fantastic!

Dags

The Hippie Investors

[Marc]

Hello !

I think the average is the same as in Aus - around 6-7%. Glenn is our local PM - I have sent him an email re your post.

best regards

marc.

[Glenn]

Hi there.
I do not think there is any majic figure.
Most people charge around 7.5% plus GST although most PM will give a discount to 5% for partfollios, with inspections around $30 and a variety of other costs.
To be frank it is simply not worth anyones time to manage properties under $200 per week at 5%. These are the problem properties that take all the time. My specialty has been in the past this sort of property and traditionally have not used a percentage charging formula. This then created a distortion in my management portfollio so it all gets a bit complicated. The MREINZ members also charge the tenants because of a clause in the RTA that permits them to do this. So they get money from both sides of the business. The RTA is being amended that will remove this special privaledge, so they will need to figure out how to make up this short fall. Also the PM's in MREINZ businesses have traditionally made a fair bit of money from referals. Most firms give 12.5% of the commission to the PM for passing referrals to the selling side of the business for properties that are sold coming from the management portfollios.
Glenn