Let's Talk About Fees

Generally speaking, companies that charge lower fees (or heavily discount their fees) will not be able to provide the level and range of services as others. Why?... because they will not have the financial resources to attract, train and retain appropriate professional staff and/or provide the technology, systems and backup required.

The key to securing a good financial return on your property is having it let in the shortest possible time frame, for the best possible rent, to the best possible tenant and having it pro-actively managed during the tenancy.

Property management fees vary, with some companies having higher management commission and monthly fees but lower letting fees, or vice versa.

To get a total picture of the cost of managing your property, you need to calculate the total annual cost for each property management firm (i.e. management fees, letting fees, advertising, statement/postage fees, maintenance fees, court appearance fees, insurance claim fees etc etc).

Comparing these fees across various property management firms may show an annual variance of up to say $300.00 per annum so on a $300.00 per week property this is equivalent to one week's rent, therefore, if the company charging the lower fee takes one week longer to secure a tenant for the vacant property, any saving in management fees has already been eroded. A prime example of this is where some agencies hold "rental open homes" if a prospective tenant is asked to wait a week for the next open home that's a weeks rent lost simply because the agency is saving time rather that considering the loss of income and arranging the inspection quickly at the convenience of prospective tenants

Therefore, finding out what resources they put into letting properties and asking about their vacancy rates (i.e. the % of vacant properties in their rent roll), is an important first step in choosing the right property management company.