Does anyone use a realtor to manage a rental property?
How much do you pay them?
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Does anyone use a realtor to manage a rental property?
How much do you pay them?
Generally fees can range between 5% - 10% of the weekly rental income, depending where the property is. Having said that many of those charging at the lower end (5%) often have other charges and fees attached (ie, reletting fees, statement fees, etc), whilst the majority at the top end (10%) do not so much. Having said that there are always exceptions.
In Canberra, most of the agents charge about 9.5% (because they can) and about half of those have other fees that they will charge on top, whilst the other half do it for the flat percentage rate.
Brontide in Queensland it's worked out based on the length of contract etc You can check out QLD's relevant regulations here at the Govt Fair Trading site. There should be an equivalent in NSW.
Our house on the gold coast is at about 7.5% of rent (plus GST) with a sundry fee for postage/banking monies etc of $2.00 (plus GST) per transfer to owner and then i think they get one weeks rent for reletting (to a new tenant not continuing tenant if just resigning lease)
Our house in brisbane is similar
Our leases are usually 12 months if we can get it, 6 months at a minimum.
We pay 5% to the agent who manages our property (Bayside, Melbourne), plus a small monthly statement fee (approx $2/month - I can't recall the exact amount off hand). We got this rate, which I understand is their rock bottom, because of a contact who referred us. They have been excellent in terms of managing the property - very responsive, very on top of things, etc. One thing to keep in mind is that the property generates a weekly rent that is on the high side, thus they are getting 5% of a very good number - I'm not sure if this is a factor in how low they are willing to go.