Property Management Fees Explained

Usually when we buy something we look at the price and can easily understand the set price. Property management fees are not as easy to understand but are very crucial to your financial future.

Property Management Fees

The one most people know about.  It’s a percentage of your rent in most cases.  One or two percent can add up over the lifetime of your property. Have you done the maths?

Gold Coast Property Management

Advertising Fee:

The cost to advertise your property.  Some Property Managers don’t bother doing professional videos or pictures.  What kind of light does that leave your property in and what kind of tenants will poorly taken fuzzy pictures attract?

Professional photos, a 3D tour, a video and drone footage are costly but put your property in the best light to attract the best rent and the best tenants.

 

Admin Fee

It’s a little tricky to explain what this fee covers.  Administration?  Printing? Stationery?  In this day and age where paper, printing and stationery are not required it is essentially just an extra cost tacked on to the agreement.

 

Sundry Fee

As per the administration fee, another additional fee that serves no purpose other than to bump up the cost for owners.

 

EOFY Statement Fee

This is a fee charged to provide owners with the documents their accountant needs to claim all the deductions possible. With modern property management software, this is simply a matter of clicking two or three times inside the program.

 

Routine Inspection Fee

The cost to attend a routine inspection and create an inspection report.  These are the normal day-to-day tasks a property manager needs to perform. 

 

Letting Fee

The fee, usually around a week’s rent, is to find a tenant. This fee would include checking the property for compliance, advertising, and doing open homes.

Even checking tenants, receiving lots of phone calls and emails and making sure the right tenant is found, they understand their obligations and all the correct paperwork is completed.

 

Re-letting Fee

A similar fee to the above fee but charged when a tenant renews a lease and decides to stay at a property.  This would mean connecting with the current tenant, negotiating a rent increase and making sure the paperwork is signed, the bond updated and the new rent set up.

 

Share the Post:

Related Posts

Nathan Terry

Founder of Red Gum Property Management
Property Investor | Trusted Advisor | Property Manager

Nathan is the founder of Red Gum Property Management. A property manager, property investor and trusted advisor who supports property investors to maxismise their return on investment.