Comparing property management fees in Perth? Here’s everything you need to know…
When considering using a property manager, the first thing many landlords research is fees.
After all, your rental property is an income stream — and a property manager shouldn’t blow your budget!
However, figuring out how much you’ll have to spend can be easier said than done. Many agencies hide unexpected fees in the fine print, or itemise every cost down to the last paperclip!
In this blog, we’ll break down common property management fee structures used by many agencies, to help you make an informed decision:
- non-inclusive, itemised fees
- “all-inclusive” fees (but not always…)
- the We Love Rentals fee structure.
Itemised property management fees
Traditionally, many property managers itemise their services and charge each item individually.
Landlords may be charged a fee for:
- management – usually a percentage of rent collected, but some agencies charge a percentage of all money collected, which can mean extra every time your tenant pays a bill!
- letting/leasing (often 2-4 weeks rent)
- pre-letting inspection and mandatory Property Condition Report (up to $450)
- routine inspections (up to 4 per annum) and reports
- final inspections and bond reports
- lease renewal (often 1-2 weeks rent)
- administration charges
- annual tax statements.
Because every tenancy is different, you can’t know upfront what services you’ll need or the total cost. You can, however, pay attention to what items you’ve agreed to pay for, and the fees for each item.
Alternatively, many agencies charge:
“All-inclusive” property management fees (but are they really…?)
Many agencies offer an “all-inclusive” fee, charging a percentage of rent (or money collected) as high as 11%. In theory, this covers everything.
In reality, it’s difficult for every aspect of property management to be covered by a single fee.
Fees outside regular management can spring up, for example for:
- court appearances
- any extra advertising/marketing
- processing insurance claims
- inspecting work by tradespeople
Clarify whether these items are ‘extras’, or you’ll end up paying more than you bargained for!
So, what do we charge at We Love Rentals?
We Love Rentals has a team of experienced property managers dealing with rental properties only. We understand that you want value when paying for property management services.
We’re proud to say our fees are truly all-inclusive — we charge three fees only. These are:
A LETTING FEE
This covers the cost of finding new tenants and is fixed throughout the letting process. It includes:
- professional photography
- featuring your property on multiple sites: e.g. realestate.com, reiwa.com
- vetting applicants via all three leading tenancy databases
- the initial property condition report
- all activities needed to find your ideal tenant (for example, home-opens.)
A MANAGEMENT FEE
Our management fee covers everything, from quarterly property inspections, arranging repairs and maintenance, down to postage and administration.
It also pays for services like:
- processing insurance claims
- searching tenancy databases
- attending strata meetings
- preparing statements / EOFY summaries.
We charge one flat management fee so you won’t have unexpected charges!
FEE FOR COURT APPEARANCES
Even with the best intentions in the world, sometimes there’s no way to avoid disputes with tenants. If you need us to appear in court for you, this fee will cover court fees and your property manager’s time.
What do we recommend?
We might be biased, but we think our property management fees structure is one of the best in the business – as our clients always know what to expect.
Each month you’ll know what is going into your account, and when. (Mortgage stress, begone!)
If you like to keep things simple and know where you stand, why not give us a call on (08) 6254 6300 to chat about managing your property?
Brendan, Janine and Sarah in our management team would love to talk to you!