Property manager costs

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tcpdump

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Ultimate Geek
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Topic # 175290 24-Jun-2015 08:23

Hi,

Quick question please: What's the going rate (percent range?) for a property manager these days? (it's a 2/3 bedroom house in Auckland)
Any tips & tricks, do/don't do?

Thank you.

heavenlywild

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Reply # 1330353 24-Jun-2015 08:27

Plenty of options out there. Some offer house inspections without further charge. If you are keen for a referral, I have someone!

freitasm

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Reply # 1330355 24-Jun-2015 08:29

Moved to correct forum. Please post in correct subforum so your questions can get to the correct audience and knowledgeable people.

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tcpdump

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Ultimate Geek
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Reply # 1330359 24-Jun-2015 08:37

freitasm: Moved to correct forum. Please post in correct subforum so your questions can get to the correct audience and knowledgeable people.

Thanks for this. I initially wanted to post here but I thought it's not quite a 'home workshop' type of question (as most of them are related to actual work around the house).

trig42

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Reply # 1330363 24-Jun-2015 08:46

Our two property managers charge around the 7-7.5% mark.

They will also arrange minor repairs, and charge you a commission on those. We have asked ours to contact us with any (and in fact, one of our tenants just emails us if there is an issue and we send someone around, bypassing the agent).

Be aware that some hold your rent for up to a month (we get paid monthly for one (which the tenant pays weekly), and fortnightly for another - tenant pays fortnightly) and for those that pay you as they get paid, they hold it for 5 working days to clear (quinovic do this). It can be frustrating/inconvenient if you are relying on the rent appearing in your account to pay the mortgage as a public holiday any time between when the tenant pays them and you getting it will delay it. I do not see why they have to hold it, unless the tenant was paying by cheque (and who uses them any more??)

tcpdump

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Ultimate Geek
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Reply # 1330368 24-Jun-2015 09:03

Thanks, 7-7.5% seems quite reasonable.

I bet the reason why they hold on the money for a few days is to get interest. It doesn't seem a lot out of your cash but when you add it up, it probably becomes a nice amount.

xontech

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Reply # 1330412 24-Jun-2015 09:50

And its probably x% + GST.

trig42

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Reply # 1330455 24-Jun-2015 10:07

Yep, it is.

Looking at ours, it is 7% + GST, which actually works out at a fraction over 8%

nathan

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Reply # 1330481 24-Jun-2015 10:33

I'm looking at Auckland Property Management Ltd and they want to charge me 8%+GST for a place I own on Waiheke, which seems higher than what you guys are saying above. hmmm

trig42

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Reply # 1330491 24-Jun-2015 10:46

One of mine is on Waiheke, and we use a local to manage it - PM me if you want her details - she is pretty hard on tenant selection, and takes no sh*t if they don't pay.

andrew027

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Reply # 1330492 24-Jun-2015 10:47

One person supports this post

We were paying 8% +GST for Harcourts to manage a rental property in Blenheim but we dumped them recently when they started charging us extra every time they actually had to do something. For example, the tenant advised them the washing machine tap in the laundry was leaking where the tap exited the wall (i.e. before where the hose was screwed on) even when the tap was turned off. Harcourts contacted us for permission to get a plumber to fix it. We said yes. Harcourts subtracted the plumber's bill from the next rent they banked and sent us an invoice for their time arranging the plumber. I told them that's what the 8% is for. They said no. I said feck off.

I gave the job to a self-employed friend of mine who lives in Blenheim and has a couple of rental properties of his own that he looks after himself. I pay him 6% +GST and he mows the lawn for that as well.

xontech

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Reply # 1330498 24-Jun-2015 10:52

Yes that's a common misunderstanding, I believe most places will charge commission on what I call turnover (money in/out of the manager) not just commission on rent collected.

lissie

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Ultimate Geek
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Reply # 1330510 24-Jun-2015 11:05

trig42:

Be aware that some hold your rent for up to a month (we get paid monthly for one (which the tenant pays weekly), and fortnightly for another - tenant pays fortnightly) and for those that pay you as they get paid, they hold it for 5 working days to clear (quinovic do this). It can be frustrating/inconvenient if you are relying on the rent appearing in your account to pay the mortgage as a public holiday any time between when the tenant pays them and you getting it will delay it. I do not see why they have to hold it, unless the tenant was paying by cheque (and who uses them any more??)

I asked Quinovic that - apparently even when the client pays by DD the bank can reverse the transaction up to 5 working days afterwards. Rare but it happen. The tenenat isn't allowed to pay by check - it has to be DD - for Quinovic branch I use anyways

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HundredHaven

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Wannabe Geek

Reply # 1330942 24-Jun-2015 19:30

Hi. I'm a property manager in Auckland and hence of course I would recommend myself.

Here's some tips in selecting property managers:
1) Find out if they have rental property themselves i.e. someone who can relate to you and appreciate your challenges.
2) % charge is may not be the only charge. Many have lots of add-ons e.g. inspection fees, "admin" fees, water bill handling fees, tribunal attendance fees, etc, etc.
3) How do they manage rent arrears and how do they set the expectation with the tenants?
4) Does he/she belong to the local property investment association?
5) How many properties do they manage? You them to have more time to look after your property. More than 100 properties is too many!
6) Do they charge the tenants a letting fee? If they accept money from tenants, would they act in your best interest?

If you are interested to find out about us, welcome to email me.

All the best to your hunt.