Limited Time Offer

Save on Investment membership.

Buy Now

Advantages of hiring a property manager

Advantages of hiring a property manager

As an investor, you can cut costs by managing your property yourself as you don’t need to pay management fees.

However, if you lead a busy lifestyle, and don’t reside close to your investment property, hiring a good property manager can end up freeing up your time and the reduce the stress of owning an investment property.

For example, I purchased two family apartments in Melbourne while living in Perth. I hired Motion Management Property to manage everything on my behalf from rent collection to:

  • Organising keys for any inspections or tradespeople
  • Organising repairs and maintenance
  • Attending to the payment of council rates
  • Liaising with tenants and us
  • Attending to daily admin tasks such as phone, fax and email enquiries
  • Liaising with and attending the corporate body meetings and the matters
  • Disbursement of the bonds
  • Organising water readings

Why do I need a Property Manager?

Property managers are trained for the job and look after landlords, tenants and investment properties on a daily basis. DIY property management can be a great money saver if you’ve got the time to spare. However, you may not have the same level of expertise or network of useful contacts as a property manager to manage your property efficiently, and emotional involvement can be a risk. If you don’t have the time and patience to deal with any delayed or missed rent payments, complaints from neighbours and any damage to your property, the safe option would be to hire a property manager who can deal with these issues for you.

Now let’s look at other types of managing fees that can apply to you.

A letting fee

A letting fee is the fee charged by a property manager for their services involved in sourcing a new tenant for a vacant property.

Marketing fees

This is the fee for internet marketing on real estate listing websites and a ‘for lease’ signboard to secure new tenants. It may also include a professional photography fee. It would be best if you did your own due deligence on different companies for the charges.

Lease renewal fee

At the end of the lease period, if you want to expand this contract, the property manager will charge a fee to sign the existing tenant onto a fixed-term agreement.

Property Price x Commission Rate = Property Management Commission Payable

A Property Manager will provide you with comprehensive management of your property – not just rental collection.

Flat-rate property management fees

This means all fees are rolled into one management fee. However, some of these services often don’t provide the same level of accessibility and may not allow for personalised service and local expertise.

If you’re after information on selling property, you can visit our real estate agent fees and commission guide.

Routine inspection fees

As a part of the agreement, the property manager may inspect your rental property on a regular basis to check on the condition of your property, and therefore charge a service fee. With the advent of Covid-19, management companies are now conducting virtual inspections, especially in Melbourne, where we had a second wave of Covid-19.

Annual Statement fee

The fee charged to obtain your annual summary statement covering the last financial year.

Civil and Administrative Tribunal fees

In the rare occurrence that you need to take a tenant to court, you may incur service fees, including court preparation and travel costs. This is usually based on an hourly rate.

I have an excellent relationship with Motion Property, and their fees are competitive on the market and have the advanced App to connect you to your account and view all the activities 24/7.

Testimonials

Newsletter Subscription

Sign up for our newsletter for all the latest updates and offers.

Loading