Owning an investment property is a great way to build a nest egg for the future. But you don’t want to see that egg swallowed up by the many and varied fees it can cost you to manage your property. Understanding your management fees can make a big difference to your future returns.
What are the management fees?
Property management fees are the costs your property manager charges you for the service they provide. Fees are usually charged as a percentage of rent collected, and will vary depending on your property manager. On average you can expect to pay 7% of rent.
What other costs are there?
On top of the management fee, you might also be charged a range of other common fees. These can be charged as a flat fee or based on the rent collected. Average common fees you can expect to pay include:
- Letting Fees – 1.5 weeks rent
- Internet Marketing Fees – $300
- Lease Renewal Fees – 1 weeks rent
- Lease Preparation Fees – $55
- Monthly Admin Fees – $11.50
- Annual Statement Fees – $55
- Professional Photos – $150
- Signboard – $99
- NCAT Fees – $110 per hour/$260 flat fee plus costs.
The real cost of management fees
Let’s look at the fees in real terms. Based on an average rent of $550 per week for a Sydney apartment, and a management of 7%, a traditional property management agency will charge $167.29 per month. Add to that all the other fees and charges and, based on the property being leased out to new tenants once during that year, you’re looking at $4,439.50 in fees during that year. That’s over 8 weeks’ worth of rental income you’ll never see.
"On average you can expect to pay 7% of rent"
Want to know how much you could be saving? Just use our savings calculator to find out how much more you could have in your pocket each year.
:Different specialises in making world-class property management services available and easy with our team of local experts operating throughout Australia. Here at :Different, we combine the convenience of a one-stop online property management solution with the security of real, on-the-ground property maintenance & management teams. With a 24/7 tenant app + owner app, property inspections, free rental appraisal and excellent customer service, :Different gives you more control over your rental property, without high fees or hassle.
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