What Do Property Managers Charge? Here’s a Fee Break-down

Working out what a property manager charges is complicated. With so many prices and service lists, how can you accurately compare property management fees? This article helps you evaluate your options with the appropriate criteria.

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How much should you pay for a property manager? How will you know if you’re paying a reasonable amount for the services you’re getting?

Different property managers have different charging policies. If you compare one to another, you’ll notice how some property managers charge high for an all-inclusive package, while some offer low commission rates with higher additional charges. There’s no straightforward answer to which is better, but there is a way to evaluate them to get the best bang for your buck.

Managing a rental property can be expensive, so it’s important to compare the costs of different management fees and services. This article compares these two things to help you make better-informed decisions when choosing which property management company to work with.

How Does a Property Manager Charge?

There are two fee structures all property managers in Australia use:

For both of these fee structures, the property manager should include the following costs:

These fees all depend on the level of service you require. For example, if your new property managers are coming on board in the middle of a lease, they shouldn’t charge a letting fee for finding new tenants.

In the same thought, if you see that a property manager is offering you a price that’s way too good to be true, they might exclude some of these tasks and charge it to “additional costs.” You’ll end up paying more than you bargained for to get the holistic service you expected. For example, they may charge extra for routine inspections, property repairs, or providing annual statements.

How Can I Compare Costs Between Property Managers?

It’s difficult to give a straightforward cost comparison of the different property management fees, as every agency has its own terms and inclusions. What you really need to do is review the contract carefully, so you know what you’re paying for and what services you won’t get.

In my opinion, the bare minimum property management fee should cover the following:

Then, my advice is to check if these common add-ons are part of the contract or not.If they aren’t charging for these services, will they actually do it?

Regardless of what services you’re looking for in a property manager, you need to go through the proposal with a fine-toothed comb, so you won’t be surprised if anything is missing, overpriced, or inapplicable. Doing so makes it easy for you to compare property management prices and find your ideal agency.

How Much Can I Expect to Pay for a Property Manager?

While charging policies vary per property manager, it also greatly varies per state. Here is a chart that shows you the cost comparisons of each state in Australia:

Average 

PM Fees

Other Fees Additional Information
Sydney 

(NSW)

5% to 12% Letting fee is 1-2 weeks rent in Sydney and 4 weeks rent in rural NSW Lower fees are available in high-density areas; higher fees, particularly in rural areas
Brisbane

(QLD)

7% to 12%

(Brisbane is 9%)

Often separates rent collection and management fee; letting fee is 1-2 weeks rent Average property management fees available in the suburbs; both flat and percentage-based structures are common
Melbourne

(VIC)

5% to 10%

(Melbourne’s inner suburbs is 6%)

Letting fee is 1-4 weeks rent in Melbourne and across Victoria Melbourne is a competitive area with relatively low property management fees; those that offer less than 5% are “bare-bones” managers with minimal services
Adelaide 

(SA)

9% to 15%

(Adelaide metro areas are at 9% to 11%)

Letting fee is 2 weeks rent across South Australia Said average fees usually only includes general management and can charge extra for inspections and repairs
Perth 

(WA)

8.5% to 11%

(higher in regional or rural areas across WA)

Letting fee is 2-3 weeks rent across Western Australia Property Condition Reports may add a thousand dollars to your annual fee; make sure to ask for the full list of possible fees
Canberra

(ACT)

6% to 8%

(higher in regional ACT)

Letting fee is 1-2 weeks rent across Australian Capital Territory Lower fees are available in Canberra metro areas; higher fees, particularly in rural ACT
Hobart 

(TAS)

5% to 10% Letting fee is 1-4 weeks rent across Tasmania Lower fees available when closer to Hobart and other key cities; higher fees, particularly in rural areas of Tasmania

 

Don’t Sign Until You’ve Double Checked Everything!

Price isn’t everything when it comes to choosing a property manager. But based on my experience, I’d rather choose one that is fully equipped (and paid!) to completely manage my rental properties instead of finding out half way through a tenancy that an overworked, unexperienced Property Manager has not been keeping a close eye on the details that end up costing a whole lot more to fix. After all, property managers are supposed to make your life easier.

Our team at Benchmark is more than willing to help you with property management. Get in touch with our expert property managers today for more information using this link.

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