When you have decided to hire property management services for your investment property, you are now probably wondering how much that will cost you on a monthly basis. We have done the research on the average property management fees for you.

 

Property management services in a nutshell

Property managers mainly take the hassle out of the day-to-day management of your investment property. It is much more than just collecting rent. We’ve explained property management services before, but they are especially handy when you are an interstate of overseas investor. It would be a tough job to organise open houses, inspection reports, and communicating with tenant or maintenance providers when you are not physically there. Not to mention the time needed to follow-up payments, manage bills, and ensure that you are compliant with the rental property legislation. A qualified property manager will give you peace of mind and ensures your rental property is generating revenue for you.

 

Costs of property management services

Recurring property management fees depend on the location and value of your property. But also the experience of your property manager can play a role. Here is our breakdown of the average costs of property management services:

  • Management fees are on average 5-7% of all rent collected
  • Letting fees or leasing fees normally equate to 1 – 2 times the weekly rent amount)
  • Lease renewal fees is usually 1 times the weekly rent amount
  • Monthly statements are around $5.50, if offered by your property manager
  • Great property managers will offer you a yearly EOFY statement (costing around $55) as well

Other costs that can occur:

  • Advertising with professional photography – $330
  • NTD check – $15.90
  • Key cutting – varies
  • Routine inspections – free
  • Insurance claim – $250
  • Builder handover fee – $250
  • Rent review fee – $55

Victorian civil & administrative tribunal charges:

  • Tribunal prep & appearance fee – $220
  • Application fee ($67.40 or $96.30)
  • Warrant of possession – $199

The breakdown of these costs will make you think about the value you will get in return for these fees. Wyndham is still a great area to invest in, and tenants are very eager to live in this booming region. A good property manager that provides high-quality services, will maximise your rental income and minimise your costs. Plus, they will also provide you with information on how to claim some of your investment related costs back on your tax return.

 

Tax deductable costs

The ATO has a list of all the expenses you can claim on your rental property that relate to the property management and maintenance of your investment. Some of those are:

  • Property management fees
  • Advertising costs
  • Body corporate fees and council rates
  • Repairs, maintenance, cleaning, and gardening costs
  • Insurance costs
  • Interest expenses
  • Legal fees

Claiming your property management services and other costs related to your investment property, will lower the amount of tax you have to pay. Hence why we, at established property, provide you with an end of financial year statement to make this process easier for you.

 

Looking for property management services?

Our experienced team at established property would love to help you. Request a rental appraisal today and get in touch with one of our team members.

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