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One agency has introduced a flat-fee pricing model that applies to properties regardless of size or location.
Laming Property Group director Lynette Laming said the Sydney business wanted to offer clients a more modern and relevant fee structure.
“The old ways are outdated; I started in this business in 1977 and nothing has changed in the fees, yet a lot has changed in how we do things,” she told RPM.
Ms Laming’s company charges a flat fee of $1,100 per annum, regardless of how many bedrooms the property has or how much rent it collects.
“To manage a one-bedroom or three-bedroom property, for us, there’s not a lot of difference,” she explained.
“The main difference is, when you do a condition report, you do two more rooms and maybe one more bathroom. We just think it’s a much fairer system that we can offer.”
Ms Laming noted that the level of care remains the same, regardless of how many rooms a property has.
“We give the same full professional service at this level. There’s no difference, so it’s not like clients are getting a cheap product; we just know that this type of pricing works,” she explained.
Ms Laming added that the initiative has been well received, particularly since she believes property investors are more educated than before and the industry is changing rapidly.
“I would suggest that property managers can all do this and I would urge them to do the same as I’m doing. Offer it to your clients before your clients come to you,” she said.
[Related: Want to cut the number of calls around fees and charges?]
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