How much does a Property Manager Cost?

Property Managers take the stress out of owning a rental property.

They oversee and manage the property by servicing tasks such as:

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

A Property Manager can also show a listing and screen and select prospective tenants.

And, if you’re on the other side of the relationship, as a renter, they provide you with a secure 3rd party who can manage and maintain the property. They liaise with owners and they’re aware of regulation and protections that you’re entitled to as a renter, as well as assisting with administration and leases.

If you’re in a circumstance where you think property management might be something for you, you’re probably wondering how much a Property Manager costs.

We’re going to explore how much you can expect a Property Manager to cost and some of the details around property management.

Who Pays for a Property Manager?

If you’re the owner of a property, then typically, you can expect to pay for the services of a property manager.

A property manager’s fee is generally paid by rental income collected from your tenants, but you, as the property owner are ultimately responsible for paying the fees.

What fees can you expect to be charged for property management?

A Property Manager in Melbourne will typically charge:
– a management fee,
– a letting fee

A management fee is an ongoing amount that covers the cost of managing the property. It is paid to the Property Manager, usually as a portion of the rental income and includes services such as collecting rent, organising maintenance and updating you on laws and changes to legislation.

A Letting fee is payable when a new tenant has been sourced by the Property Manager.

There can be other fees that occur such as:
– Annual Statement fees
– Inspection fees
– Advertising fees
– Administration fees
– etc

To give a quick summary, the answer is that it will depend on the property management company. It’s best to contact a Property Manager and ask them for the fees related to your specific circumstances and property as there isn’t usually a ‘one size fits all’ management fee.

If you are looking for management for your property, our team of experts can help, including providing fee information. Contact our team here.

What percentage do most property management companies charge?

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

Melbourne is a fiercely competitive market, and the benchmark here sits around 6% if you have a property in a regional area, you might find this figure higher.

And, a Letting fee in Melbourne is usually somewhere between 1-4 weeks rent.

How to calculate a property management fee

You can work this out when you have your:
– Management fees
– Weekly rental income

For example, if your property has a weekly rental income of $500 and your property manager requires a management fee of 5%:
0.05x$500 = $25 a week (excl GST)

The fee will be deducted from the rent collected and is generally collected monthly.

This excludes additional service fees, such as letting fees and inspections.

Do Property Management fees change by suburb?

Absolutely.

As we mentioned before, Melbourne is a competitive market, and as such the management fees can be lower here than in regional Victoria.

This also applies to suburbs as your location and the management competition in your area affects the fees you could pay.

Property Management in Melbourne is competitive and varied. If you’re looking for an experience Property Management team that can take the stress out of owning a rental property, or properties, then Eton Property Group can help.

Get in touch with our team to discuss your needs and how we can help you.