What’s involved when working with a Property Manager
So, you’ve secured a decent investment property and you’re ready to receive the benefits of a rental income – fantastic! Above all else, you need a Property Manager to assist you to take care of business.
Underneath we’ve outlined what types of fees and services you should expect from a Property Manager from Paul Hill Realty:
Management fees are charged on a percentage of the rent money collected, therefore the amount charged will depend upon the actual rent amount.
These charges are related to general management duties these include:
- Rent collection and managing rental arrears.
- Paying and recovery of water consumption from tenants.
- Conducting regular rent reviews.
- Collating relevant information for the owner’s statement.
- Organising maintenance repairs and quotes.
- Liaison and regular follow-up with maintenance contractors.
- Organising special water readings when required.
- Organising keys for inspections and tradespeople.
- Copying/scanning of invoices.
- Attending to the payment of general property expenses such as council rates.
- Liaising with owners and tenants.
- Liaising with insurance companies.
- Attending to the daily telephone, email and fax enquiries.
- Liaising with the strata company if applicable.
- Processing notices to vacate.
- Disbursement of the vacated tenant’s bond.
- Legislation updates and compliance.
- Administration of advertising tribunal hearings.
- Some advertising activities.
As you can see for this exhaustive list of services, Management fees are a small price to pay for peace of mind.
A letting commission (letting fee) is a one-off payment that you make to your real estate agent at the start of a new tenancy agreement. This will usually come out of the tenant’s first rent payment.
This fee covers the agent’s costs for advertising your property and setting up the tenancy agreement with your new tenant.
If a tenant leaves their contract early, the outgoing tenant as compensation for terminating their agreement early generally pays the letting fee. Furthermore, the amount charged relies upon the actual rent amount.
The letting fee is for services includes:
- Arranging, placing, recording and administering advertising.
- Organising, taking and uploading photographs of your property.
- Administrating and processing applications for tenancy (100-point checks).
- Processing the application for tenancy, including reference checks.
- Co-ordinating and conducting personal viewing appointments with prospective tenants.
- Negotiating the terms of the lease with both owner and tenant.
- Attending to the preparation and processing of lease documentation, including bond lodgement, general information for tenants, photocopying, keys, and the emergency plan for tenants.
- Compiling the entry inspection including photos (approximately 200 photos are taken for a standard size house).
Other fees may apply for important tasks relating to your property management, however, this varies from one agency to another.
These additional fees may include:
- Administration fee – also referred to as a statement fee.
- Advertising fee.
- End-of-financial year statement fee.
- Lease renewal fee.
- Routine inspection fee.
- Tribunal representation fee.
- Maintenance project fee (for substantial renovations).
If you try cutting costs by not hiring a good Property Manager. Means you are cutting corners, which consequently will increase your risk as an investment property owner.
Remember experienced property managers can save you the landlord time, money and headaches.
If you are looking for experienced property managers with your best interests at heart. You won’t find a team that is more respected, reliable and trusted in residential property management.
Paul Hill Realty’s office is located in Hope Island and we manage residential properties anywhere on the Northern end of the Gold Coast. Paul Hill Realty Hope Island is your best choice in property management.