Everything You Need To Know About Property Management Fees

You’re busy – that’s life. If you have an investment property or properties, you may not have the time to ensure they’re filled and generating a profitable line of equity.

That’s where a Property Manager comes in.

A property manager can be someone you hire to handle the day-to-day management of your rental property, including:

– Marketing and leasing properties
– Collecting rent and deposits
– Handling maintenance and repair issues
– Responding to tenant complaints and concerns
– Enforcing lease agreements and ensuring compliance with relevant laws
– Keeping accurate financial records and preparing reports for the property owner
– Minimizing vacancy and maximizing rental income.

Hiring a property manager can free your time and relieve you of responsibilities and headaches associated with managing your rental property.

If you’ve never hired a Property Manager before you might be a little daunted.

– Will it be expensive?
– Is it only for the super-rich?

These are common questions we’ve heard before, so we thought we’d dive in and provide a guide on everything you need to know about Property Management.

By the end of this not-too-long post, you’ll know whether property management is the right solution for you.

What are Property Management fees?

A Property Manager is paid for overseeing the tasks needed for a rental property to provide a steady income. We’ve listed those tasks above, mainly:

• Collecting rent
• Property Maintenance
• Repairs and renovations
• Tenant Issues and concerns

And, we’ve provided an excellent what a Property Manager costs in our previous post.

To sum that up here, a Property Manager in Melbourne will typically charge:

– a management fee,
– a letting fee.
– Other fees can apply

And, as above, you can find explanations behind these charges in this post.

But, what are those fees? How much can you expect to pay?

What is a Typical Property Management Fee?

There isn’t a standard $X fee, because your property management fee will depend on your property, location and property management company.

Again, we have a helpful breakdown of fee expectations in our earlier post, but for a quick summary here’s what you can expect:

What is a Typical Property Management fee in Australia:

A management fee is a percentage of the weekly rent and in Australia this can range from 5-12% of the weekly rental income.

What is a Typical Property Management fee in Victoria:

Melbourne is a fiercely competitive market, and the benchmark here sits around 6%.

How are Property Management Fees Calculated?

Your Property Management Fees are calculated based on a percentage of your weekly rental income.

As a reminder, the payment is for the following services you can expect a Property Manager to undertake:

– Marketing and leasing properties
– Collecting rent and deposits
– Handling maintenance and repair issues
– Responding to tenant complaints and concerns
– Enforcing lease agreements and ensuring compliance with relevant laws
– Keeping accurate financial records and preparing reports for the property owner
– Minimizing vacancy and maximizing rental income.

We have an excellent breakdown, including a calculator here. You can work out your expected fees if you know your percentage of management fees from the Property Management agency and your weekly rental income.

That’s all there is to it. Once you have confirmed the fees from your selected Property Management agency and signed up, there’s very little that you have to do.

The stress and responsibility are taken off your shoulders and you can enjoy hassle-free rental income from your investment or future home.

If Property Management doesn’t feel right for you yet because you have more questions get in touch with our team to discuss your needs and how we can help you.