What are the Property Management Fees in Brisbane?
One of the most frequently asked questions we are asked by landlords is “how much are your property management fees?”. Our team at Calibre Real Estate is dedicated and focused on taking the worry out of investment property ownership. An investment property that is not managed effectively leaves you exposed to unnecessary risks and costs which could affect your bottom dollar.
We have compiled some additional questions to ask when enquiring about the management of your investment:
What are the Property Management Fees in Brisbane?
Most agencies in Brisbane charge property management fees between 7.5% to 12% plus GST for the management fee, including the rent collection commission. It’s integral that you understand what services are included in this rate, without knowing this you cannot determine who is providing the best value and knowledge.
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.
In addition to asking the above questions also ask to review an Entry Condition Report (ECR)– these reports are your protection when a tenant vacates a property. The ECR should include detailed descriptions on every applicable section, click here to download an example of a detailed ECR. When engaging a discounted agency to manage your investment, we find that the entry condition reports are not detailed enough to protect landlords when their tenant vacates, this could leave you out of pocket for a figure far greater than the initial savings in property management fees.
We also find agencies with discounted property management fees put their property managers under enormous pressure, managing any more than 140 properties. This means less care and due diligence, consequently resulting in poor management of your investment property. Quite simply, poor management costs the landlord money.
In Queensland, a letting commission is also referred to as the either the letting fee or let fee. This is the fee to the investor for the letting service of the premises. Agencies are able to charge any amount for this fee, which generally ranges from one to two week’s rent plus GST.
Tribunal representation fee – representing the investor in the Queensland Civil and Administrative Tribunal (QCAT)
Lease renewal fee – conducting a rental appraisal, negotiating with the tenants on the landlord’s behalf to secure further fixed term agreement & preparation of a new General Tenancy Agreement.
Administration fee – this is also referred to as a sundries fee. This includes payment of accounts, mid-month and end of month processing
End of financial year statement fee – a summary of expenses & income from the financial year to assist with your tax return
Periodic/routine inspection fee – a fee for the agent to carry out an inspection of the property during a tenancy.
The following common expenses may be included in the management agreement:
We have prepared a table which shows standard weekly, tax deductible, management fees including GST to assist in comparing the costs of an agency’s fees. The difference between a high-quality agency and a cut price agency could be less than the cost of a coffee a week.
As an investor we understand your primary objective is to maximise income and optimise capital growth on your investment property. At Calibre Real Estate, we understand the value of your investment property and the time required to successfully manage it. We have adopted modern and innovative concepts to exceed our clients’ expectations of service, keeping our landlords up to date with the market and how their investment is positioned in the current market.
As part of our service to you, we conduct rent reviews when a tenant is vacating and when a tenancy agreement is coming up for renewal. At Calibre we don’t just focus on managing the property, we focus on managing your asset.
Calibre’s professional experience and diligence not only ensure you receive high rental returns, but also secure quality tenants. We focus on maximising your return on investment to ensure you reach your property investment goals.
Our dedicated team receive ongoing training and mentoring. We are constantly tweaking and improving our service based on conducting regular client surveys to ensure that we keep delivering a high level of service that we would expect to receive with our own investment properties.
As a boutique Property Management agency, our service is highly personalised and tailored to your needs. The provision of a high quality Property Management service is paramount in ensuring your most valuable asset is well managed and protected. This takes time, resources and many years experience.
Changing managing agents is simple, fee-free and can be taken care of by our property management team on your behalf at any time. Our hands on, personal and caring approach to owners and tenants is one of the unique points of difference that set Calibre apart from our competitors.
Ensure your investment is protected by contacting our office for an introduction to our property management team and to obtain full details of our property management services and fees.
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