Raising Fees

Raising fees - we all have to do it sometime - but when is the right time?

When presenting full CMA at lease renewal time?
or part way through the lease

At end of financial or calendar year - or does it really matter?

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Hi Louise

We raised our fees last year on our whole portfolio. We have over 800 landlords and only one landlord pushed back.

If you drop me a mail at oliver@wre.co.nz then i can let you know the process we followed and how we presented it to our landlords.

Thanks

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We have recently reviewed fees on our portfolio. Quite a number of older clients had negotiated hard and were sitting on low commission rates so we selected those and sent an increase. No push back at all, and we have achieved a great result.
We were badly affected during the first Covid lockdown with market rents dropping 25-30% so we did wait until rents had recovered to pre-Covid rates (only in the last few months!).

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This is awesome news @julie Congratulations. Thanks for sharing.

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One of the great things about being part of LPMA is being able to interact with our peers on this forum and share ideas and experience with each other. I put this post out back in May and got some great feedback on how to approach the question at hand. I am about to embark on the next round of fee increases - a more broad approach - the entire rent roll - rather than just the ones on the lowest fees which we did last year.

It is going to be a big job - all the new MAA’s - but I am hoping it is a move in the right direction.

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We are actually going through this process now as well. We were concerned as the QLD market is geared towards selling your investments at present so thought we might scare some off, but I think if you leave it till the perfect time, it will never come.

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We have a baseline fee plan that we aim to have clients at. When you are starting a new company as everyone knows price is a big factor for landlords. So increasing your fees slowing we have have found most effective.

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Yes - that is the approach that we are doing - based on our lease renewals - we are having the conversation at the same time and so far we are having success. If we are talking to our investors about something else on the property and the time is right - we get it done then as well.

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Sounds like you have a good management process for the increases. Great job @louiseschofield :star:

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Hi Oliver, i would love to know more please!! Christel

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Hi Christel! Email me at oliver@wre.co.nz and I will spill the beans :slight_smile:

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@adamhooley has a webinar related to this. Hope this can contribute.

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Me too. I’ll email you