PROPERTY MANAGEMENT FEES

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Most agencies on the Sunshine Coast and Moreton Bay Region  charge property management fees between 7% 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.

There are agencies who charge either a fixed annual fee or less than 7% 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.  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  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.

•  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.

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. 

 
                    $400       $500       $600        $700       $800       $1,000      $1,500       $2,000

5.50%       $22.00    $27.50    $33.00    $38.50     $44.00     $55.00      $82.50        $110.00

6.60%       $26.40    $33.00    $39.60   $46.20     $52.80      $66.00      $99.00        $132.00

7.70%       $30.80    $38.50    $46.20    $53.90    $61.60      $77.00      $115.50     $154.00

8.80%      $35.20    $44.00    $52.80    $61.60    $70.40      $88.00       $132.00      $176.00

9.90%      $39.60    $49.50    $59.40    $69.30    $79.20      $99.00       $148.50      $198.00

11.00%   $44.00    $55.00    $66.00    $77.00    $88.00      $110.00     $165.00      $220.00
 

Rent Collection:                                                                              On Request

Management   :                                                                               On Request

All Letting Fees:                                                                              Equal to one weeks rent + GST

Monthly Administration Fee:                                                    $5.00 + GST

Tribunal Representation:                                                           Included in management

Maintenance Fee:                                                                          Included in management

Lease Renewals:                                                                             Included in management

Routine Inspections (conducted every 18 weeks):         Included in management

Financial Year Statement:                                                          Included in management

Preparation & Processing Insurance Claims:                     Included in Management

Advertising & Marketing:                                                            $90.00 per vacancy + GST

(Advertising includes,  listing on realestate.com.au , feature listing on domain.com.au, @realty, realestateview, rent.com and Sohoapp, Gray Property Services, Facebook and Instagram)