Read this blog to get an in-depth view of Perth’s property management fees.
How much do Perth’s property managers charge? – One of the most common questions asked by landlords when considering using their services for rental purposes. To answer your question – there are no fixed fees. The charges of a property manager may vary from one real estate agency to another. Several agencies – offering property management services – usually hide unexpected costs in the fine print. In such cases, you should always rely on unbiased, real-life property management reviews in Perth to make an informed decision.
In this article, we’ll break down the common property management fee structures used by most agencies in Perth.
First, let’s understand
What Does a Good Property Manager Do?
Most real estate agencies offer property management services throughout Perth. However, their cost and level of service may vary from one agency to another. Property management services are not standardised. Generally, the duties and responsibilities of a good property manager include:
- Advertising the property and screening prospective tenants
- Arranging trades to perform general repairs and maintenance duties on the property
- Dealing with challenging tenants
- Determining the accurate rental value of the property
- Ensuring that tenants pay the rent on time
- Inspecting the property regularly and providing an update on you its condition
- Liaising with the tenants to deal with any complaints or potential issues
How Much Do Property Managers Charge?
There are two main types of property management fees – the leasing or letting fee and the ongoing property management fee. Let’s get an overview of both the fee structures.
Leasing or Letting Fees
Leasing or letting fees are often 2-3 weeks rent, depending on the time property managers have spent on communicating with prospective tenants, showing around the property, processing applications, reference-checking prospective tenants, drafting and signing the lease, processing rent payments, and lodging the security deposit. Most property managers may offer initial property inspection and property condition reports based on the law.
Property Management Fees
Property management fees are a percentage of the entire amount collected by the agency on your behalf. Usually, the fees can be anywhere between 8.5% to 12% of the rent from the property, which is deducted every month.
What Is Included in the Property Management Fee?
As mentioned earlier, property management services are not standardised and will vary from one another. Most agencies may initially offer a moderate management fee but later charge for additional services, including administration, property inspections, arranging repairs and maintenance for your rental property, lease renewals, and preparing property condition reports.
Itemised Property Management Fees
Most rental property managers itemise the services provided and charge each item separately. Property managers may charge their landlords for:
- Administration fees
- Annual tax statements
- Final inspections and bond reports
- Letting/leasing (often 2-4 weeks rent)
- Lease renewal (often 1-2 weeks rent)
- Management (usually a percentage of rent collected)
- Pre-letting inspection and mandatory Property Condition Report
- Routine inspections (up to 4 rounds) and reports
However, not every tenancy requires the same services or has exact property management costs. Therefore, always pay close attention to the items you have agreed to pay for and the individual cost of each item.
All-Inclusive Management Fees
Other agencies may offer an all-inclusive management fee, charging a percentage of rent. All-inclusive fees – also known as flat management fees – may seem higher (8% to 12%) but can be more cost-effective than other fee structures in the long run and ensure good property conditions. However, a single fee structure cannot cover every aspect of property management. The additional management fees can be for court appearances, processing insurance claims, inspecting work by tradespeople, and any extra charges for advertising/marketing.
Whichever fees structure you follow, make sure you understand the overall cost you may have to pay each year before signing the dotted line.
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