Property Management Fees: How to Know What’s Fair by John Sage Developer Queensland
Maybe you’re considering employing a property manager for your growing portfolio, or perhaps you already have one and want to know if what you’re paying is appropriate.
John Sage, an expert realtor, understands how difficult it is to find clear information on property maintenance fees. Also, he knows it is hard to choose the most exemplary service from among the numerous choices available.
In this post, John Sage will explain the traditional pricing strategy and how to calculate property management costs, allowing you to make more informed decisions.
The conventional property management pricing strategy
If you’re new to the industry, or if this is your first time, it might be challenging to determine how much you should anticipate paying or the estimated cost of property management. Property managers typically charge a commission of the weekly rent and GST for their services. Several factors may affect the amount you are set, and determining how to assess these fees can be difficult.
According to John Sage, one of these criteria is the location of your property. While property managers in Sydney charge an average of 5.5%, property managers in Melbourne charge an average of 6%, while fees in Perth easily reach the 8–10% range. Fees can also vary within a state, and it is not uncommon for large metropolitan areas to have cheaper management fees than outlying areas.
Another item to consider is real estate management fees are adjustable. Owners who have many properties with management can frequently negotiate a cheaper cost. Property owners with a specific investment can also benefit by negotiating ‘extra fees’ in the standard rate that may or may not make economic sense in the long run.
For these reasons alone, John Sage maintains that finding accurate, up-to-date data on the cost of property management fees is quite tricky. You can have difficulty making a basic comparison or shopping around for the most incredible deals.
