Its an interesting question. It would be fair to say if your property manager is doing a poor job looking after your investment, whatever they are charging you is too much. We often hear of landlords using a discount agency then being unhappy with the level of service they provide, with no inspections, poor maintenance and rental arrears.
Often we have investors wanting to haggle on our fees & that’s fine. We charge 8.8% inc GST, often they would prefer 7% inc GST. Interestly to them, the different is very minimal. Keep in mind property management fees are a tax deduction. Smart investors know they are better to pay a fair fee and know their investment property is in good hands, than push for a discount and not have their investment property looked after.
As property managers we do a considerable amount of work & have considerable overheads for our $50 a week fee.
The management fee is not the only fee you will pay. You will also need to pay a let fee for finding a tenant. This is typically 1 weeks rent. Again a fair price considering the hours it takes to interview and process rental applications then draw up leases and process the bond.
So don’t just look at a property managements fee. Look at how well that will care and protect one of your biggest investments. A good property manager is worth every cent.
Purple Brick is expensive. Here’s why:
Often someone looking to sell focuses on what the agents fee will be on the sale. 1.5%, 4.4%, 2.85% etc.