A tactic sometimes employed by agencies is to have a low upfront management and rent collection fees so as to entice investors into using their service however the extras charged can be substantial.
Some agencies charge up to 2 weeks rent for a letting fee, 1 weeks rent for a relet, bond inspection fees up to $250 per time, interim inspection reports up to $80 per time, postage and petties up to $10 per month, court attendance fees up to $260 per time and statement charges up to $30 per year.
Just the let fees and bond inspection fees under this sort of arrangement can skyrocket what seems like an attractive 5% property management charge to an a very unattractive equivalent of over 12% and more.
You should always get a full schedule of charges that are applicable rather than just relying on percentage management fee that can often be misleading.
