The range of services provided by a Managing Agent can be quite extensive. How much you pay and which fees you are charged may depend on which services you require them to perform on your behalf.
When people compare fees, they typically only mention the ‘Management Fee’ which is a percentage of rent collected. However, it is vital to obtain a list of ALL fees and charges so you can make an informed decision as to which agent will provide you value for money.
The following is a list of the most common fees you may encounter when comparing agents, and a rough guide of how much you can expect to pay. Note that GST needs to be added to all figures:
- Management Fee (for day-to-day management): 7% – 9% of rent collected
- Administration Fee (to cover postage, photocopying, bank fees, etc): $5 – $10 per month
- Letting Fee (to place new tenants): Equivalent of one week’s rent
- Marketing Fee (to cover online portal fees): $50 – $200 when your property is listed online
- TICA Database Check Fee (to cover TICA membership fee): $5 – $10 per check
- Property Inspection Fee: $20 – $50 per 4-monthly inspection
- Lease Renewal Fee (for re-signing tenants): $50 – equivalent of one-half week’s rent
- Maintenance Co-ordination Fee: 5% of invoice
- Project Management Fee (for a major refurb): 10% of total cost of work
- Insurance Claim Processing Fee: $50 flat fee or per hour
- Mediation and QCAT Representation: $50 – $100 flat fee or per hour
- Meeting Valuer / Representative onsite: $50 – $100 flat fee or per hour
- End of Financial Year Statement Fee: $25 – $50 per year
- Statement re-print fee: $25 – $50
- File Closure Fee (at termination of management): $90 – $200