property management fees - Changing Places

There are some agencies that will offer discounted property management fees. You always need to look at the number of properties the property manager is looking after. If someone is charging cheap fees, the manager is often looking after 180, 200 or even 250 properties at once. This is unsustainable. The property manager will either crack under the pressure and leave, or not be as detailed as required, and you and your property will suffer. Thorough tenant checks will not be carried out; condition reports not checked when they come back from a tenant resulting in problems down the track, routine inspections will not be carried out and rents not increased in line with the market.


Related Article: Why Use A Property Manager?


I have some people come to me and say, “Cameron, so and so agency has offered to manage our property for 6.6% with the GST but you’re charging 7.7%”. Whilst 1% sounds a lot, it is only $1 in every $100, so if your property is let at $400 per week, its only costing you $4 extra per week to have an experienced property manager properly manage your property and the cost is tax deductable! For the extra $4, you have a superior property manager who might only be looking after 100 – 150 properties rather than someone who is looking after 180 or more. Yes, $4 per week costs you $208 extra per year but if your property is vacant for longer periods, or you’re not even informed your tenant has vacated, or the rent is not increased in line with the market or the tenant trashes your property, it could cost you many thousands of dollars. Percentages sound big: WOW 6.6% compared to 7.7% that’s a huge saving! It’s not. It’s literally only a few dollars per week.

For more information on Property Management Fees watch the below video:


For more information on how the Changing Places Property Management team can help you click here or call 1300 130 998.



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