Managing property is a lot of hard work, which is why many landlords hire property managers to do it for them. If you’re looking for Adelaide homes for sale to add to your portfolio, you can get a property manager–a professional who deals with the sale, maintenance, and upkeep of homes–in exchange for a percentage of your weekly rent as commission.
What Does a Property Manager Do?
A property manager does several different tasks, and some do more or less than others depending on the specific services they’re hired for. The basic responsibilities of a property manager include:
- Determining the value of a property
- Marketing a property to renters (which may include helping with staging property in Adelaide)
- Screening prospective tenants
- Conducting regular property inspections
- Collecting rent
- Organising trades to perform repairs and maintenance work
- Liaising and dealing with tenants
Pros and Cons of Property Management
A property manager helps owners and landlords take a step back from real estate duties, removing a load off their backs. Their experience and expertise can give property investors a better bang for their buck and generate the best value for their rentals.
Plus, they usually have a range of contacts and suppliers that they can connect landlords with when needed (such as when a landlord needs to hire someone for the right price to build a house in Adelaide or experiences a property-related emergency).
That said, property management can cost a lot (though property management fees are tax-deductible), and the fees paid are usually an ongoing expense that needs to be budgeted for.
What Are Property Management Fees?
Property management fees, also known as real estate rental fees, represent what landlords pay to a property manager for marketing their property, managing tenants, and maintaining the home. It’s also the commission the property manager gets for acting as an agent.
Property management fees usually amount to a percentage of a property’s weekly rental amount. In Adelaide, this averages from 7.5% to 11% for basic services, such as collecting rent, organising the payment of costs, handling maintenance and repairs, liaising between landlords and tenants, and other administrative tasks.
Property managers can also charge extra for additional services (though they’re optional). These include:
Leasing or Letting Fees
The letting fee is charged for the manager sourcing and assessing rental applications, negotiating lease terms, collecting bonds, and drawing up documents to finalise lease terms. It typically costs the equivalent of one to two weeks’ rent.
Advertising or Marketing Fees
Some property managers offer services to market a listing online or prospective renters. They may charge a fee for it, which may include writing the ad and taking photos of the property.
Routine Inspection Fees
Property managers may charge a fee for regular inspections to check on the condition of a property and identify any potential issues to ensure that it’s well-maintained.
Civil and Administrative Tribunal Preparation Fees
In the rare occurrence that a tenant gets messy and results in a trip to the Tribunal, a property manager may charge fees to prepare documents needed for the case. This cost ranges widely, but it’s often charged hourly at a flat fee.
Annual Statement Fees
The annual statement fee is paid to the property manager for preparing an annual summary statement at the end of a financial year.
Lease Renewal Fees
Tenants generally sign a one-year lease agreement, but if they want to extend the contract, the property manager will charge a fee (usually one week’s rent) to prepare the contract renewal.
Admin Fees
The admin fee covers miscellaneous fees such as postage, spare key creation, storage, etc., and should just be a little over $10 a month.
Find a Property in Adelaide With Soho
Anyone looking to buy or rent a property will often have to deal with a property manager, so it’s good to know the extent of their tasks so that you can better communicate with them, whether as an owner of a rental property or a person leasing one. If you’re in the market for homes for sale or rent in Adelaide, find the best one for you on Soho today!
