property management fees
property management fees

How Much Should I Pay In Property Management Fees?

Amy Simpson

One of the most frequently asked questions we are asked by landlords is “how much are your property management fees?” For a Property Management Agency, there’s a fine line between being market competitive and proposing unsustainable management fees. It’s important that a prospective agency gives you a thorough outline of what services they provide. Without knowing this, you cannot determine who is providing the best value for money. You need to ensure that you are comparing apples with apples.

A good property management agency will ensure they deliver on their promises to you. These include :

  • Thorough screening processes of potential tenants
  • Happy and well trained staff members
  • Processing of all bill payments and paperwork
  • Strategies and processes in place that ensure shorter vacancy periods

An investment property that is not managed effectively leaves you exposed to unnecessary risks. These risks could be costly and could therefore affect your bottom dollar.  For our six reasons why hiring a professional property manager is crucial to the success of your investment, see here.

Property Management Fees : What Rate Can You Expect to Pay?

Most agencies in Brisbane charge property management fees between 7.5% to 12% plus GST. This is for the management fee, including the rent collection commission. In Brisbane, there are agencies who charge either a fixed annual fee or less than 7.5% to manage your property. To run an effective property management agency and to maintain a high level of service, we are unsure of how these business models are sustainable.

property management feesCalibre’s Senior Property Manager, Kathleen Gillard, is fairly black and white when it comes to agencies who are constantly cutting their fees, “You get what you pay for” says Kathleen, “training staff costs money. Being kept up to date with legislation costs money. Running a business costs money. If an agency drops their rate to 5.5%, the property manager is under the pump to take on more properties in order to ensure the business is sustainable. This results in corners being cut and mistakes being made. For a landlord, it’s just not worth the stress and will ultimately end up costing them more money in the long run.”

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