After chatting to four different real-estate agents and finding out what they do for you as part of their property management fee, I got a couple of tenants through the old-fashioned way via a friend. The lease is now signed and we’re both happy – they’re paying rent that is of a level some months ago (ie without a real estate agent’s commission) and i’m getting my mortgage and rates covered with a small buffer for an interest rate rise. I’ll probably come out a touch on the red as I draw down the remainder of my money while travelling but it wont be much.
The renovations are also amazingly going well. There’s a new deck put in for the front verandah and it looks much better than I thought it would and worth the extra dollars. SG has pulled out all stops and I feel guilty coming home each day and seeing how much she’d done. We should have plenty of time to finish everything else with the extra week off coming up. And there’s also Cup Day next week for me to chip in.
The only things that are now outstanding for me is to arrange a postal address for my snail mail. I cant believe how many companies still use paper mail – it will all change in the next five or so years but in the meantime, I’m looking through my list of friends.
For those interested, the best deal I could get out of real estate agents in Melbourne with minimal bargaining is:
- 6.6% management fee (inc GST)
- 1.5 weeks letting fee (ex GST) with no additional advertising costs
- Zero re-letting fee for same renter otherwise 1.5 weeks letting fee.
- Postal charges if paper copy needed of ~$3 per month otherwise $0 if electronic copies of reports needed.
You can probably bring them down to 5.5% management fee (inc GST) with a bit more bargaining.