Dollar Figures for Rates, Insurance, Repairs/Maintenance, Property Manager, etc

[ENP]

What rough guidelines should someone be working off for expenses for a 3 bedroom rental property?

- Rates
- Insurance
- Repairs/Maintenance
- Property Manager

Assume the rental is out of town from where you live and is in a town such as Palmerston North. Rough figures just so I can get my head around it.

Is around the $5000-6000 mark in the ballpark?

[sbw]

Im in hamilton and have two 3 bed rentals. I work off 1600 for rates, including regional rates, 500 for insurance including damage and loss of rent, manage them myself so no property management (about 6% of rent), and use only 2k as provision for r & m. Also save a safety 5k buffer in account for anythijg short term plus access to credit card. Hope that helps.

[shanecarruthers]

How long is a piece of string ? ... they vary a lot from city to city so you really need to workout the figures on every property to make sure it is what you expect.

Rates and insurance can vary and maintenance could be anywhere from a pot of paint and some duct tape to $10k a year or more if its in need of some repairs.

I normally work out the figures on each and then I know what the expenses are for the basics.

[Simmo]

To help you get a feel for it, these are approx:

Rotorua:
- Rates $2100 - $2300 (expensive town for some reason).
- Insurance $600
- Property Manager 8%

Tauranga:
- Rates $1900-$2000
- Insurance $600 - $700
- Property Manager 8% or thereabouts.

R&M vary greatly depending on the type of property, i.e a 1920's villa can send you broke, a modern brick and tile will be significantly less work.

Look up Palmys rates database on a few properties that you are interested in and that should give you an idea, along with other useful info like R.V and Lot area. A mate of mine picked up a fee simple 3 bedder on Guy Ave recently bringing in 10% yeild so it can be done.

[eri]

it is interesting that rotorua's rates are so high

anyone know why?

does it have a higher than national average number of rate payers with rates remissions meaning others have to top up the general account?

edit: google brings up some interesting stats for sulphur city

http://www.justice.govt.nz/publications/global-publications/r/research-on-the-effectiveness-of-police-practice-in-reducing-residential-burglary-november-2005-report-5-case-study-of-the-rotorua-police-area/10-crime-statistics

[Puff]

Yes every place is a little different, but simple really as you can find info out very easily, like rates you can get online in a minute by going to the local council website. Apart from that:

Insurance $600 Again dependant on what you are buying, 6 flats compared to 80sqm 3 bedroom house
PM 8% + GST of income,
R & M $1k If the place is modenish and in good shape, any older places allow $2k.

So as the others have siad it depends on many factors. I suppose a standard 100sqm 3 beddie in South Auckland, you $5 - $6k is about right.

Cheers

[Hec]

yeap 5-6k is a safe bet.
If its under then all good.
If it goes over a year here and there, best to get over it.

Hec

[buxlo122]

R & M $1k If the place is modenish and in good shape, any older places allow $2k.

Are you basing your R&M figures if done by a property manager or R&M done by yourself? Do you see much difference in the two?

[Simmo]

Are you basing your R&M figures if done by a property manager or R&M done by yourself? Do you see much difference in the two?

R&M = Repairs and Maintenance...

Property managers generally don't do it themselves, they tend to contract it and charge you 15% for the privilege.

[buxlo122]

Of course property managers don't do it themselves and alot of self managed landlords will get professionals to do there maintenance.

However the would be some minor stuff a landlord would undertake themselves where a property manager would get some one in for.

Also if you need to get a tradie in who will get the cheaper/better tradie the property manager with their contacts or the landlord who is more concerned with how far his dollar goes?

[Simmo]

Of course property managers don't do it themselves and alot of self managed landlords will get professionals to do there maintenance.

So you were meant to say "Are you basing your R&M figures through a property manager or arranging R&M yourself? Do you see much difference in the two?" Sorry just could'nt figure what you were asking.

Also if you need to get a tradie in who will get the cheaper/better tradie the property manager with their contacts or the landlord who is more concerned with how far his dollar goes?

How long is a piece of string? Do you want cheaper or better, you generally won't get both. What it costs you depends entirely who your contacts are.

Either way this is nit picking and if the deal is coming down to this it's not a go-er.

[buxlo122]

In general I am trying to find out if your R&M will be higher if you use a property manager? If so how much?

Assuming landlord is not a tradie but could do basic stuff.

[eri]

had a case recently

during tenant change in small apartment it was noted that the kitchen extractor filter needed changing

pm passed the job to a plumber as "kitchen extract filter needs changing"

plumber calls tenant to find out extractor brand and type

tenant isn't native english speaker has no idea what is being asked

so plumber drives round, parks at meter, goes up, checks numbers

goes back to work, orders filter

filter comes, drives back, parks at meter, goes up, installs filter

done

filter cost $20

installation $200

pm cut $30.....

if you can

you want a hands on pm

not a

hands off

or 1 that at least knows to write things like model numbers down on work requests