How much does a property manager cost?

The average property management fees are 7% to 10% of the weekly rent of the property. In some areas, rental property management fees can be as low as 4%. In contrast, upscale regions can cost as much as 15%, which doesn’t always include GST. The fees can cover two property inspections that are completed each year, weekly rent collection, and maintenance that must be performed on the property over time.

City	Weekly rent of property
Sydney	5% – 10%
Melbourne	6% – 8%
Brisbane	7% – 12%
Perth	8% – 11%
Darwin	5% – 10%
Adelaide	9% – 11%

Property management is the overseeing of residential or commercial properties, which can include apartments, condominiums, and shopping centres. The property manager works as the middle man to interact with the tenant and owner of the property.

Property managers are responsible for finding tenants, collecting rent, and maintaining the property to ensure it’s safe and habitable for tenants. Most property owners choose to hire a property manager to save time and energy. The responsibilities can be a full-time job, which many people don’t have time for each day. It can also help the owner avoid legal hassles.

Type of property – The type of property rented out is one of the main factors that influence how much a property manager will charge. Residential properties are easier to manage due to their size compared to commercial buildings.

Location of property – The location is the primary factor influencing the cost of the rental agent fees. The area establishes a baseline rental rate, who the target market is, as well as the overall demand. The specific property and the number of days on the market also influence the average cost for a property manager.

Additional fees – Additional real estate property management fees can also increase the cost to hire a property manager. This can include if pets are allowed, the building’s curb appeal, appliances, and additional amenities that are included.

Management fee – The management fee is the typical property management cost. It is based on the type of property that is managed, as well as the location of the property. It is generally an average of 10% to 15% of the weekly rent. This depends on the location and the type of property that is managed.

Letting fee – Letting commissions is a one-time payment made to the property manager at the start of a new tenancy agreement. The letting fee can cover the cost of advertising the property and creating a new deal with the incoming tenant. It is typically $300 or less.

Marketing fees – Marketing fees vary and are dependent upon how much demand there is in the local area. This influences how much the property manager needs to advertise the residential or commercial property.

Lease renewal fee – Lease renewal fees are similar to a performance bonus to property managers if the tenant agrees to continue to live at home or use the office facility. It is an average of 25% of the rent.

Admin fee – Admin fees include duties like cleaning fees, contract registration fees, garbage collection services, condominium taxes, and contract registration fees. The more admin tasks that are required, the more the agent fee for rental property will increase .

Annual statement fee – The annual statement fee is added to the price property management. It covers the day-to-day management of the property, which includes processing rent and conducting inspections. It can also include responding to emergency maintenance calls and coordinating repairs.

Insurance claims – The residential property management rates can include insurance claims that are filed if damage occurs to the property as the agent manages it. The price varies, depending on the cost of the claims.

Inspection fees – Inspection fees are charged each time the property is inspected and is an average of $100 for each visit. The cost can increase if inspection videos are recorded.

The property management cost for a holiday home/rental is typically higher than a regular rental property. They average around 15% to 20% of the rental revenue. This property management fee structure may or may not include additional costs associated with rental properties such as welcome packs and stocking the home with essential items. Holiday rental property management is more expensive than typical property manager fees due to the extra tasks involved in maintaining holidays homes.

Rental management includes using a professional to work directly with tenants. A rental manager is responsible for collecting rent, processing the payment, handling maintenance and repair issues, responding to complaints from the tenant, and processing evictions.

A rental manager is a professional who is responsible for managing a residential or commercial property when it’s rented out to tenants. A property manager is responsible for maintaining the entire property, which includes the landscaping.

What is the price comparison?

The cost of rental property management can be several hundred dollars less compared to hiring a property manager because they have fewer responsibilities. The rental management fees and the property management rates are determined by the size, type, and location of the property.

How to Create an Accurate Estimate

• Research the value of the property.
• Consider the size of the home or office.
• Research rates of local rentals in the surrounding area.
• Review the property manager’s level of experience.

Licencing and Qualifications

• Request to see their license in advance.
• Research their license by contacting the state and checking for any complaints.
• Ask for references to ask former customers of their experience working with the property manager.
• Read online reviews from former customers.
• Review how quickly they respond to your phone calls or emails to determine their level of professionalism.

How to Save Money Hiring a Property Manager

• Property management fees can be reduced by hiring a new manager with less experience in the industry.
• Ask for a discounted rate if you need multiple properties to be managed.
• Look into specials or promotions that are available throughout the year.
• Ask for a discount if you refer another property owner.
• Use the services for cheaper properties that you own.
• Request their services during the off-season to obtain a lower rate.

 

 

* The cost data is based on Oneflare and third-party sources