What do Property Management Fees Include?
Dec 13, 2019
Property Management Fees in Perth
Do you have a property that you want to rent out? Consider the services of a property manager to oversee the rental in exchange for a property management fee.
Property management fees and charges in Perth usually consist of a commission that ranges from 7 percent to 15 percent. At 7 percent, you typically only pay for property management, where fees of around 15 percent are all-inclusive.
A property management company may also charge a flat-rate management fee, depending on what the service includes.
What are the Different Types of Fees?
Property managers charge an ongoing fee for carrying out all activities related to management. Among others, these activities include:
- Arranging repairs and maintenance,including quotes
- Daily administrative tasks such as making phone calls, sending emails, and making enquiries
- Collecting rent
- Chasing rent arrears, issuing of breach notices or terminations
- Legislative requirements and knowledge
- Issuing tenant invoices for water usage or other applicable items
- Organising water readings, saving Owners a Water Corporation meter read fee, usually $16+
- Experience and expertise
- Arranging keys for inspections or repairs
- Paying council rates and other invoices for work completed
- Communicating with the body corporate when necessary
A letting fee is a fee that the property manager charges for all activities pertaining to the leasing of the investment property. These activities include all inspections to find your ideal tenant, drawing up documents, performing rental checks on potential tenants, booking ingoing property condition report.
It also includes meeting tenants onsite the day of handover to provide keys, going through how things work at the property and reminding them of expectations and their lease conditions
Property managers charge marketing fees to have professional photos taken, write property descriptions, and list the property on real estate websites.
Routine Inspection Fee
Routine inspections are necessary to prevent structural defects to your property as well as damage caused by tenants. Property managers typically include a fee for doing these inspections and providing an electronic report the day of inspection.
Property Condition Report Fee
Legislation requires the prescribed form is completed and provided to the Tenant within 7 days of the lease start date. This fee covers the cost of having this report done prior to the tenant moving in, checked by your property manager and sent electronically. It also includes photographic evidence of the condition of the property. You will receive a report the same day as the tenant electronically, including all photos. You’ll also receive any amendments by the tenant electronically
Lease Renewal Fee
Property managers charge a lease renewal fee to sign an existing tenant onto a fixed-term agreement at the end of their lease period to avoid any vacancy.
Tenant Enquiry Fee
It’s essential the right checks are done to minimise risk to property owners before approving an application. We are looking to establish ability to pay but also character. This included Tenancy databases, TICA and NTD. A debt collection agency, Barclays MIS, Social Media Accounts and an E-Court Portal check. This will establish any criminal activity, (arrest warrants, driving under the influence of illicit drugs, possession of stolen property are just some of the items that come back in this search)
Annual Statement Fee
A property manager typically charges an annual income and expenditure statement fee to collate your property’s financial year statements, ready to provide to your Accountant.
Talk to Home 2 Home Today
If you have a vacant property that you want to rent out, Home 2 Home in Mt Pleasant and Rockingham can help. Our property management services are affordable and transparent. We also use innovative property marketing strategies to maximise your return on investment.
Get in touch with Home 2 Home today for help with your property management.