Property management fees in Sydney can help landlords to reduce the hassles that come with managing their properties. These fees are low and vary depending on the size of your property and the number of tenants.
Whether you want to become a property manager or are looking for one to manage your first investment home, you might be curious about how much they charge.
The usual fees range from 5-12% of the weekly rental amount. However, you must understand what services your agents are offering before making a decision on which one is right for you. Therefore, the property management fees depend on the services you require.
What should a management fee include?
Property financing as an investment involves a lot of different fees and you should take charge of your financial situation before deciding to hire an agent. A property management fee includes:
- Rent collection
- Tenant screening solutions
- Tenant maintenance
- Property inspections
- Advertising for tenants (including online advertising) and legal advice
How do I find local property managers?
With a professional property manager, you will be able to focus on other aspects of your business and not have to worry about things like:
- Finding tenants
- Collecting rent payments
- Handling maintenance issues
Professional property management fees
Property management fees can be high or low based on the value of your property. If you have a high-value property, you may have to pay more than an average-priced home.
Property management fees are based on the following factors:
- The size and location of your house or apartment building.
- Whether there are other buildings around it.
- The number of bedrooms in each unit (for example, two bedrooms = double room)
- The age of the building itself – older buildings tend to require more maintenance work as they age, which could mean higher costs for repairs over time.
Depending on your investment property, average property management fees range from 5-12%. Property managers ask for two kinds of fees, one is a management fee, and the other one is a letting fee.
1. Management fees
Management fees include day-to-day management fees for the rental property. It includes rent collection, maintenance requests cost, inspection, communication with tenants, and council rates.
Real estate management fees are a part of the weekly rental rates. Property management companies ask for 5-12% of the gross weekly rental amount. Moreover, it also depends on how many properties you own.
2. Letting fee
You pay this fee to property managers for different responsibilities such as they inspect the prospective tenants, completing all paperwork, preparing and collecting the rental checks, etc.
It also includes the routine inspection fees most of the time. The property manager can ask for the lease transfer fee, lease renewal fee, and other property management fees while providing you with property management services. Letting fees is usually equal to 1-2 week rent.
- Besides these above two, property management fees include a lease renewal fee, tribunal fee, annual statement fee, and other additional fees, along with an ongoing property management fee.
- Furthermore, most of the country uses two fee structures for ongoing property management fees: a flat fee and a percentage-based fee.
- Flat fee
A flat fee was less common, but now it is becoming famous among property managers. Property managers fix the flat fee with the landlord or property investor beforehand. It does vary according to the services but does not depend on the weekly rent charged by the landlord to tenants.
However, you should compare property management fees from different managers, check all-inclusive management fees, and also compare property managers’ reputations before committing.
Sometimes, rental property management fees also include a commission fee percentage charged by the property manager for finding tenants and other fewer services. However, some managers will ask for a separate fee for it.
3. Percentage-based fee
Percentage-based fee depends on the weekly rental price, which is what your existing tenant is paying you already. Many real estate agencies have fixed their percentage-based fee, but you should visit different local agents before hiring a property manager. It is important to know “how much does a property manager cost?”
Moreover, you should clear the property management costs before finalising the prospective property manager.
How to manage Property Management fees
If you want to manage property management fees, you must do so with a professional. The best way to do this is by hiring an experienced property manager who will help you track your finances and ensure they are being used wisely.
A good property manager can also advise on strategies for reducing costs while still maintaining high standards in terms of quality and service delivery.
With proper planning, there’s no reason why people shouldn’t be able to stay within budget when paying these fees – provided they know what’s going on behind closed doors.
What are the responsibilities of a property manager?
The roles of a property manager include:
Managing the property
This includes checking on tenants’ well-being, collecting rent payments, and managing any maintenance issues that arise.
You may also be responsible for collecting payments from tenants in advance of their move-out date or during regular visits to ensure everything is up to date.
Screening tenants
This involves ensuring they pass credit checks and background checks as well as having sufficient funds to pay their first month’s rent deposit plus any other associated costs such as utility bills.
Collecting rent payments
You should collect rental payments on time every month. The collection should be delivered to the owners by either handing them over directly or sending them through PayPal so that you can track them online.
FAQs on property management fees in Sydney
Why do you need a property manager?
Property management is often complex and time-consuming. Without the help of an experienced property manager, you may end up paying more than necessary for your rental property.
So why should you let a property manager help you? The most obvious reason is that they’ll take care of all the paperwork associated with renting out your home or apartment, including collecting rent payments on time and managing repairs when needed.
Moreover, they also make sure that tenants are happy with their living conditions by meeting housing standards set by law (such as having enough hot water to shower), providing regular maintenance checks on appliances like refrigerators and stoves/ovens, and if something breaks down during their stay at your place? It’s up to them.
What to expect from a property manager at an average fee?
If you want to rent your property, a property manager will help you find tenants. They will manage the rental process and collect rent on behalf of their clients. In addition, they can also help with maintenance issues, such as fixing leaks or replacing broken items in your home.
If you’re selling or buying a new place, then the agent who handles this process must have expertise in selling houses and managing properties of all shapes and sizes.
A good agent will know how much money they should charge per month, and if those fees seem too high or low compared with other agents’ rates, then perhaps there’s another way around them (i.e., finding someone else).
Conclusion
Property management fees can help to reduce the hurdles that come with managing your property. Therefore, you should hire a professional property manager to manage your investments.
Property managers are more than just property managers; they’re also accountants, lawyers, insurance experts, and maintenance specialists.
They have all of these skills under one roof. Just think about how much time would be wasted if you had to deal with all these tasks yourself.
