My agent charges me 14.5% of total inclusive fees for my investment property.
(Including every letting fees inspection,report etc)
Or 9.5% fees but doesn’t include anything. On top of that, I also need to pay 2 weeks of letting fee ($880), monthly fee, inspection, report fee like 7 of them.
The rental income is about $400/week and agent will take $60 lol
Does that management fee sound normal?
Perth investors please help!
Property 40km south of Perth city.
what is IP and what is REA?
IP = Investment Property
REA = realestate.com.au
Getting good tennants is worth a lot. Red state govts make it harder, QLD is over 10% net as red tape has gone thru the roof!
What is red state govts
It’s WA
Red state = Labor govt
Comrade Dan also makes landlords pay for meth cleanup. Budget 40 to 120k per cleanup if you are lucky!
40kms from Perth? Sounds a bit on the far side. Rockingham? Either way, I'm sure you would have a local agent looking after your place.
The rest of the fees are normal but your % is a bit on the high side. I would aim for 10-11% all inclusive or 7-8% non inclusive.
Can I negotiate the price with agent?
Yes, almost all of the fees are negotiable. The % fees are easiest to talk about.
The other fees are usually standard but they can waive some like advertising costs etc.
Also, just message some other agents and ask them fee structure.
Try calling my mate Matt at Rose Realty.
They do mostly property management and would be happy to have a chat with you - even if they can't help.
Good luck.
I was like $400 in South Perth is cheap, then realized its 40km South of Perth.
sounds way too high, have a look at the ones around the area your IP is in on REA, send the top 3-5 emails to enquire their fee schedule.
don't be afraid to move if you are unhappy with service, its a commoditised service, property managers regularly move anyway, so really its all about their systems and service standards.