In Queensland your property management fees and charges are divided up in three seperate categories. There is the rent collection charge, the management fee and extra charges.
Comparing the charges of two different companies can be quite difficult. It is usual for property management companies to quote the rent collection charge and the management fee as one fee however occassionaly some companies will quote only the management fee to “appear” to be lower than they are. Significant variations can also be found in the extra charges which are not so easily apparent.
It’s important to understand two traps to be wary of when comparing property management fees. These are the Budget or discount property management services and the hidden charges property management service. We would strongly recommend you avoid either of these types of property management services as the increased risk to you as the property owner is far too high.
Premium Property Management Service
The general price range for property management services on the Gold Coast is 6% to 10% for a full service that covers all normal services. The only extras that should be charged are for things like court charges and project management when property managers handle major renovations on your behalf.
First National Real Estate provides a premium full service property management service for 8% if you have Landlord Insurance.
Should you choose your property manager base only on the Management Fees?
Just like purchasing any goods and services you need to assess the full cost of that service against the value you receive.
To put this in perspective for a typical investment property in our of $350,000 a saving of 1% in management fees only saves you $3.50 per week or just $182 per year. This represents just 0.052% of the value of the investment property. When you consider that management fees are tax deductible anyway net cost to the property owner should you really be making a decision to trust a major asset like a property on the basis of $180.00.
A great property manager who reduces your vacant dates by just 4 days or who maximises your rent by just $5 extra per week more than covers the extra investment in better property managers.
