When talking to a prospective owner, 90% of the time the first question they will ask is “what are the property management fees?”.
While it’s important to understand the fees that you will be charged for someone to manage your investment property, there are several other factors to consider before deciding on and hiring a Property Manager.
I have listed some of these questions that you should be asking your potential management agency before considering the fees they charge for management.
Compare Property Management Fees
To get a better understanding of the management fee percentage structure, we have created the below table to show the difference between a property being managed at 5% compared to 11% and everything in between, in a weekly dollar amount. All fees shown include GST to assist in an even comparison of a particular Agency’s fees.
When you compare the management fees on a weekly basis, there is a surprisingly small difference between property management fees based on the 5.5% and 7.7% tiers.
Property Management Fees around Brisbane
Being a specialised Property Management Agency in Brisbane for over 10 years, I have seen property management fees as low as 2% and as high as 12%. Though the standard across Brisbane is more often closer to 7.5% or 8.5% plus GST. I’ve always been a big believer that it is not the percentage that you are paying but the dollar amount per week that determines the percentage you should be paying.
A $300 a week property being managed at 6.6% is a dollar amount of just $19.80 a week, while the same Property Manager could be managing a property at $600 at 6.6% per week that costs the owner $39.60. The average property management fees as a dollar amount per year work out to be roughly $1600 to $1800, or $30 to $35 per week. As you can see it’s important to do your research and also crunch the numbers before deciding on the Managing Agency for your valuable investment.
Additional management fees commonly include:
The investors will often be charged a letting commission by most Agencies as well. This is a fee charged to the landlord to retain or secure the premises for letting. Agencies set their own letting commissions, but an average fee will often be the equivalent of one to two weeks’ rent, as well as GST.
Leveraging Pure Real Estate to Manage Your Investments
Pure Real Estate are specialists in property Management and Sales. We are an experienced team and can help you get the maximum return out of your investment. Our team receives priceless training and industry experience, along with constant mentoring to guarantee your investment is in very capable hands.
You have built your real estate portfolio up as an investment for your future, and your wealth, and we strive to make sure you see your properties valued and maintained well. Effective property management takes skill, experience, the right personnel, and most importantly, time. We have the resources and the drive to put in the time needed to ensure you maintain maximum value and income from your properties.
No matter if you own one rental property, or buildings comprising hundreds of individual rental units, you deserve the attention and management skill of our Team. In addition to managing the physical property, we ensure that you are renting only to top-tier tenants that have been pre-screened to assure a good fit.
We are currently running a promotion if you switch to our Agency for property management services. The promotion is to help us grow our property management portfolio and we have a limited number to give away. The value benefit of this comprehensive property management package is unrivaled.
The package includes all the following services at no additional charge to you for the first 12 months:
Our management fees are market rate with no other fees or charges.
Included in our fees are:
If you would like to have a no-obligation chat about our promotion or property management process,
Please give me a call on 0406 743 965 or submit an online enquiry.