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Regulating management fees is 'nonsense'

Regulating management fees is 'nonsense'

by Elyse Perrau 7 comments

An industry leader has responded to a call for the regulation of a minimum management fee by stating any discussion around the issue is a waste of time.

Leading Property Managers of Australia (LPMA) executive director Bob Walters said there is "no way a government of any persuasion" would start regulating prices around property management fees.

"It is nonsense ... it is the same as the government contemplating putting a minimum on airline fares, and things like that,” he told Residential Property Manager.

“I can understand what [some people] would be facing and certainly if there was any possible way for any sort of safety net to be put under fees then that would make some people’s lives easier, but you are talking about something that is never going to happen.”

Mr Walters said people of all nationalities understand the concept of 'you get what you pay for'.

"What I would generally be saying is from my experience, most property management representatives really don’t know how to sell their services, and so because of that many landlords think property managers are all the same,” he said.

“Therefore, regardless of a person’s race or ethnicity, if somebody thinks the service they are getting is the same as somebody else’s, then it is natural for people to then try and separate providers on price.

“Plus, people talking about [this issue]… is a waste of everybody’s time because you are talking about something that is never ever going to happen,” he added.

Also speaking to Residnetial Property Manager, Raine&Horne Double Bay and Bondi Beach senior property manager Ramsy Batshon said the real estate industry will suffer if the government were to put a standard in place.

“It is up to the individual agent to support the reason they charge their fees; if you are providing a service and it is a good service, people will pay the price you are asking them to pay,” he said.

“By saying you need help by regulating fees, you are opening a door that you don’t really want to open.” 

Regulating management fees is 'nonsense'
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