Each property management agency may charge different property management fees for their services. You really do need to know what you are paying for.
Appointing the right property manager can mean a big difference to your property success. The right property manager can make your property a great investment. The wrong choice means the opposite, a possible loss maker.
You must be set on finding the best qualified property management agency. Furthermore you also need to know what the costs are that are associated with engaging an agency to manage your property.
So how much should you pay for property management fees in Brisbane, Qld?
As the saying goes, you get what you pay for! Not paying too much is important! But sometimes you need to pay for quality, to make sure you get everything that you really need.
At Position One Property, we can help you understand more about property management fees. You will be reassured that we will explain how our services can provide you with the very best outcomes for your property. We understand that investing in property is all about managing the costs on the property. This is precisely what we can help you with – at the same time as providing the very best service.
Just as important is knowing what you get for those fees. Therefore, our friendly property management team in Brisbane are ready and willing to discuss all your property management questions. We aim to deliver the best rental experience for our clients, and we strive to deliver the best return on your investment.
What are the common property management fees?
Fees charged by property management agencies vary in amount and nature. There are many reasoons for this, which we’re sure you’ll appreciate. Some typical examples of property management fees include commissions on rent, letting fees, administration fees as well as other maintenance and repairs related fees.
Here is a list of the rental fees you are likely to see on your tax statement:
Rental Commissions in Brisbane, Qld
Under normal circumstances, an agent will charge commissions on the rental income that property owners receive. The common practice is that they will deduct the property management commission from the rent collected. After that they forward the balance to the property owner. More often than not, these deductions are a percentage of the total rent, and the typical commission in Brisbane and around Queensland is between 7 and 9%.
Letting fee
The letting fee is payable to the property management agency at the start of a rental contract. This fee is usually deducted from the first income payment. It generally covers the costs associated with finding the right tenant for your property, as well as those associated with preparing letting documents for your new tenant. Also worth noting is that these fees can vary depending on the anticipated length of tenancy. Fair Trading cites the maximum allowable fees in all circumstances but may not reflect the exact fees charged under your specific property management agreement.
Lease renewal fee
When your lease is renewed with your existing tenant, the property management agency is entitled to charge a lease renewal fee to cover the cost associated with compiling the lease documents. The Lease renewal fee will be either a fixed fee or a percentage of the weekly rent.
Administration fee
You can reasonably expect to pay for administration costs which will usually be charged as a nominal sum per month. These are to cover ancillary costs associated with the trust account, phone calls and postage etc.
End of financial year statement
Preparation of the financial year tax statement is charged at fixed and agreed rate.
Advertising
Your property management agent will need to promote your property through the internet or print media. This will need to be charged as a fixed fee, dependent on the amount of advertising and promotion required for your property.
Holiday accommodation
Position One Property does not manage holiday accommodation. However, it does not hurt for you to have the understanding that this type of leasing also comes under State legislation requirements. Your agent, who is also likely to be the onsite property manager, can charge commission on earnings from letting out your property for use as holiday accommodation. This property management arrangement can tend to work out a little differently from the usual tenancy agreement. Do make sure you understand the terms and conditions.
Repairs and Maintenance
A rental agency will most certainly charge extra fees where repairs and general maintenance needs to be done. Consequently, there should always be a written agreement prior to work commencing. These go a long way to ensuring your property remains in good habitable conditions for years to come.
Queensland Government Fees and Charges
The link to the government web page that states what property managers are allowed to charge is here :
So how do you know if you are paying too much?
Here is the big question! Without bias, we at Position One Property believe that better outcomes for our clients are the number one property focus.
What this means is that we:
- find you the best tenant for your property,
- offer personalised management of your property, and
- regularly inspect your property to maintain high standards.
Our strong belief is in delivering the best rental experience for our clients, and that means a better return on your investment.
And here is how we do it.
We charge the standard fees expected by the industry in the Brisbane region. We do not try to undercut prices. The best outcomes are provided for our clients by delivering the best property management services through the best staff, with the best training. Rentals arrears are not tolerated. We actively manage the circumstances around the issue of late payments, and resolve these issues before problems arise.
We believe that you should expect the best quality inspection reports when we sign up new tenants. Additionally, regular routine inspection reports assure you that your property is consistently well maintained. We provide you quality maintenance services and records of all work performed at your property. At Position One Property we will actively manage all of your property requirements. You are provided with appropriate documentation so that you are assured of quality services. These assist with keeping adequate record for taxation purposes.
We strive to deliver the best property management services to all of our clients. Our belief is that high standards, high-quality service and attention to detail will provide you with a better long term rental experience. And as our clients will agree, that means a better return on your investment.
Position One is Brisbane’s highly professional Property Management service. We would love the opportunity to discuss with you how we can best meet your personal property management requirements. We can also assist you in understanding property management fees. Please call our friendly Team on (07) 3843 4511 to learn more.