Short answer: 4% and upwards.
If you’re renting out your property, your options are to handle the day-to-day management yourself, or hire a professional property airbnb manager to do it. By doing it yourself, you save on rental agent fees, however, you take on the time commitment and risks yourself. Rental costs for landlords vary, but hiring a professional saves time and money in the long term.
So what are property management fees? How much does a property manager cost? And what do you get for your money? Hannah Gill, Managing Director of Independent Property Management, shares her insights on how property management fees are structured, what you can expect to pay and why it’s an investment that pays off.
When looking for a Property Management Agent there are a number of factors that should be taken into consideration before committing with any Real Estate or Property Manager.
Fees: Generally there are 3 separate fees that a landlord will be charged for the management of their investment property. These fees are:
- A leasing or letting fee. This is an amount charged by the Agent to locate and vet any new tenancy application. This will happen fairly quickly if your property is well maintained and presented and priced at a fair market rate.
- Marketing or advertising fee. It is important to make sure you are only being charged for what you are receiving. Agents will charge from nothing to thousands of dollars to market and advertise your property. It is imperative for the property to be available for all tenants to locate and review the details of the home if it meets the description of their needs.
- The management fee will be the largest of the 3 costs and this is the amount charged for the agent to manage the day to day needs of the property for the landlord. It includes the collection of rent and disbursement of this rent to the owner, following up on any maintenance items and organising trades people to attend and quote for needed repairs & of course chasing tenants for late payment of rent and making sure they keep up with their responsibilities regarding upkeep and cleanliness.