What Are Property Management Fees For?
By Peter Gibson
If you’re considering hiring a property management agency to manage your rental property, you may be wondering why there are so many fees. Here’s what each fee is for and how it can help maximise your investment’s potential.
1. Management Fee
A management fee covers the ongoing property management service delivered by your property manager. As part of this fee, a good property management agency should do the following:
- Provide expert local market knowledge
- Set a competitive rental price
- Deliver effective marketing and advertising strategies
- Conduct regular property assessment inspections
- Collect rent and prevent arrears
- Facilitate tenant demands, complaints and emergencies
- Manage tenant evictions
- Arrange repairs and maintenance
- Manage vacating tenants
- Deliver accurate rental appraisals
- Understand the legislative requirements
At ManageMe, our management fee focuses on providing you with the best service. From positioning your property for success to increasing your returns, we are here to add value to your investment.
2. Marketing Fee
A marketing fee includes any promotional activities designed to secure a tenant for your rental property. As part of this fee, a good property management agency should do the following:
- Provide advertising tactics to attract the best tenants
- Deliver strategic marketing promoting your property’s appeal
- Supply professional photography presenting your property’s top features
- Offer 3D imagery and drone shots highlighting your property’s layout and surrounds
- Prepare property descriptions showcasing your property’s in-demand attributes
Be wary of any property management agencies offering free marketing. That’s because free usually means no strategic advertising that promotes your property to the right target market. At ManageMe, we deliver results-oriented marketing strategies. We will work with you to create a personalised marketing plan, so your property reaches the right tenants and achieves the maximum rental price.
3. Let Fee
A let fee covers other tasks carried out by your property manager to secure a tenant for your rental property. As part of this fee, a good property management agency should do the following:
- Advise on ways to boost your property’s appeal
- Prepare your property for occupation
- Set a competitive rental price
- Apply marketing tactics
- Manage enquiries
- Schedule and hold open for inspections
- Process applications and check applicants’ suitability and history
- Prepare ingoing property condition reports
- Negotiate tenancy terms, rent and requests
- Prepare tenancy agreements and documentation
- Induct tenants
- Ensure all monies are paid
- Lodge bonds
At ManageMe, we promise to find you the best possible tenant, in the shortest possible time, for the longest possible term and highest possible rent. As a result, we help reduce your vacancy period, mitigate the loss of rent and maximise your returns.
4. Tenancy Renewal Fee
A tenancy renewal fee is for any tasks carried out by your property manager to sign your current tenant onto another fixed-term tenancy. As part of this fee, a good property management agency should do the following:
- Prepare property analysis and comparison reports
- Forecast market movements
- Review tenant history
- Appraise recommended rental terms and amounts
- Negotiate rental term and amount with property owners and tenants
- Confirm instructions in writing with property owners
- Confirm offer to extend rental term and amount with tenants or issue notice to leave
- Prepare renewed tenancy agreements
- Increase bond if required
- Ensure rental increases are received
- Lodge increased bond following legislative requirements
- Process and send renewed tenancy agreements
- Update records
At ManageMe, we provide a comprehensive tenancy renewal service which gives you peace of mind that you have a fixed-term tenancy, and your rent is at market rate or better. In turn, this helps you achieve more stable and higher rental returns.
5. Inspection Fee
An inspection fee covers the property inspections conducted by your property manager. As part of this fee, a good property management agency should do the following:
- Carry out regular property assessment inspections
- Conduct ingoing and outgoing property inspections
- Provide detailed property assessment reports
- Identify and manage maintenance and repairs
- Advise on preventative maintenance and upgrades
At ManageMe, we carry out one onsite and two video complimentary property assessment inspections of your rental property every year. As part of this service, we also conduct ingoing and outgoing property inspections. If at any time you would like to arrange an additional property assessment inspection, we will charge you an inspection fee.
All our inspections make sure your tenant is taking care of your property. They also let us find and repair maintenance issues and advise on preventative maintenance and upgrades. This service ensures that your property is always well-maintained, which boosts its value and keeps your tenants happy.
6. Subscription Fee
A subscription fee includes all overheads a property management agency must have to manage your rental property. As part of this fee, a good property management agency should do the following:
- Use licenses, memberships and software to conduct property management services
- Prepare and send regular documents and reports
- Prepare and send monthly and annual statements
- Grant clients access to their owner portal
At ManageMe, we subscribe to many licenses, memberships and software programs, so that we can provide you with the highest quality property management services. As a result, this helps you increase your asset’s value and maximise its potential.
7. Tribunal Fee
A tribunal fee is paid if your property manager must represent you in court due to a tenancy dispute. As part of this fee, a good property management agency should do the following:
- Prepare and lodge hearing applications
- Attend tribunal hearings
- Represent you in court
- Cover court filings
At ManageMe, we communicate our policies to both you and your tenant to mitigate misunderstandings and avoid tribunal hearings. We believe that all clients should know theirs and each other’s rights and responsibilities to ensure that you and your tenant have rewarding experiences with our property management agency.
Working closely with you to understand and achieve your property investment goals, we are committed to providing you with the highest standard of professional property management. That’s why our property management fees are for designed to boost your results. If you would like to learn more about our fees and services, today.