THE COSTS INVOLVED WHEN ENGAGING A PROPERTY MANAGER
Finding the right tenant with a good rental history, stable income, and a track record of treating rental properties with respect is the aim of every property investor. It’s also the primary role of the property management team at McAdam & Turnbull Realty. Whilst some investors choose to manage their own properties, most property owners prefer to use the services of a skilled property manager to ensure the best possible outcomes.
Like all professional services there are costs associated with the ongoing management of rental properties, and in today’s blog our business manager Bronwyn Evans will broadly outline the costs associated with engaging a property manager like McAdam & Turnbull.
Starting at the beginning, agencies will charge a ‘Letting Fee’ (often equal to one weeks rent) to find and put in place a new tenant. The Letting Fee usually covers:
- Marketing the rental property. (realestate.com.au, rental lists, signage etc.)
- Escorted inspections of the property by prospective tenants.
- Coordination of tenancy applications and tenant selection.
- Verification of information and ID provided by each tenancy applicant.
- Checking of all applicant references including relevant on-line tenancy data bases.
- Preparation of lease documents and bond lodgement forms.
- Collection of Bond and disbursement to the Residential Tenancy Authority.
- Coordination of a detailed Entry Condition Report.
The main ongoing property management costs include the ‘Management Fee’ which is often charged as a percentage (%) of the weekly rental amount. The management fee usually covers:
- Collection and receipting of rent payments from tenants and disbursement to the owner.
- Answering tenant enquiries regarding the lease and any tenancy matters.
- Undertaking scheduled and other inspections of the property with a report to the owner.
- Rental arrears management.
- Managing routine maintenance and urgent repairs according to property owner instructions.
- Rent reviews including adjustments to Bond money held.
- Exit condition reports.
- Support to property owners with any insurance claims and refurbishment of the property.
There are some additional costs that may be required on an ‘as needed’ basis depending on events and circumstances associated with the tenancy. These additional costs include:
Lease renewal Fee – Usually covers a range of services relating to the renewal of an existing tenancy agreement including document preparation and signing.
Subscription Fee – Usually covers a range of software/computer subscriptions needed to keep the agency at the forefront of techologny in managing your retnal property.
End of Financial Year Statement Fee - Usually covers the preparation and distribution of annual statements to property owners for accounting and taxation purposes.
Change of Shared Tenancy Fee - Usually covers changes to a shared tenancy agreement relating to the replacement of an existing tenant. (Usually covered by the tenants requesting the change.)
QCAT Representation Fee - Usually covers the cost of property owner representation by agency staff at the Queensland Administrative Appeals Tribunal if/when required. Does not include Tribunal fees and charges.
It’s very important to note that property management services offered by local real estate agents aren’t all identical. When exploring property management options with different agents we recommend thoroughly investigating the services offered and what is covered by each fee quoted.
When it comes to property management services it’s important to compare ‘apples with apples’. – Bronwyn Evans
This blog is intended to give you a broad understanding of the costs associated with property management. It is not intended to be a complete list as some agents may charge additional fees for their services. Our property management team led by Bronwyn Evans are focused on tailoring rental and tenancy solutions to meet your needs, and keep the experience as stress free as possible. McAdam & Turnbull Realty are your local real estate professionals and property management specialists in Toowoomba and nearby surrounds. You can follow our Principal and agent Lachlan Evans at www.linkedin.com/in/lachlan-evans-621bb583 or view our current rental and sale listings at http://www.mcadamturnbull.com.au and LIKE us on Facebook @
https://www.facebook.com/McAdamandTurnbullRealty/
This publication covers real estate, property market, finance and legal related issues in a general way. It is intended for general information purposes only and should not be regarded as professional finance or legal advice. McAdam & Turnbull Realty recommends that professional legal and/or finance advice should be obtained before taking any action on the basis of the general information presented in this publication.
Written and Published by www.presentprofessionally.com.au