Property management fees typically cover services outlined in the rental agreement between the property owner and the rental agents. These services include screening and sourcing good tenants, marketing vacancies and managing your lease on a daily basis. To find out more continue reading or contact a Joyce Property Manager.
The management fee is the basic fee you pay your property manager and a major aspect of your rental agreement. It encompasses all day-to-day tasks that need to be done to manage the lease and is usually charged as a portion or percentage of the weekly rent.
In Perth, property management fees typically range from 8.5% to 11% of the total rent collected.
Since the management fee comprises a substantial portion of the fees you’ll be paying your property manager, make sure you partner with a reputable and experienced establishment. They should ideally have an excellent service record and established connections with various service providers.
Property management companies typically compete against each other based on the price/fee structure they charge a client or the quality of their service.
A good property management company would find the ideal balance between the two; that is, providing reliable and efficient property management services at fair rates.
Aside from the management fees, there are certain costs and inclusions you need to consider. These may vary significantly, so it’s crucial to know and understand what other fees will be included in the rental agreement. Other fees to be considered include the ones listed below.
When there’s a vacancy in your property, the letting or leasing fee covers the period where the property manager has to source a new tenant. This fee is usually equivalent to two weeks’ worth of rent plus the Goods and Service Tax (GST).
A good property manager knows that one of their primary tasks is to ensure your property is always occupied and rented out at fairly negotiated rates. The lease renewal fee is applied when existing tenants plan to stay beyond the term of their original lease, so a new fixed term lease needs to be drawn up.
At Joyce Property, we’ll assess current market conditions to check if we need to negotiate lease terms with a current tenant who wants to renew their lease, so your property remains occupied and generates a continuous revenue stream.
Designed to ensure tenant safety, preserve the condition of your property, identify maintenance issues and document how your tenant is taking care of your property. According to the Residential Tenancies Act, a maximum of four routine inspections may be scheduled in a year. Fees can range from $77 to $99.
A final bond inspection is done once the tenancy contract is finished and your former tenant delivers a vacant property. This inspection is carried out carefully and checked against the property condition report. The results of the bond inspection will determine whether any repair or replacement work needs to be charged against your former tenant’s bond.
The property condition report (PCR) is a document used to describe the condition of your property at the start of a tenancy. This document needs to be done carefully and should ideally include photographs of the property as it serves as a legal basis for bond disposal when a tenancy agreement is concluded. This legally required document must be given to the tenant in the required format within 7 days of the beginning of the tenancy.
PCR fees can range between $250 and $500, depending on how big your property is, the number of furnishings included and whether you have a garden.
Administration fees charged monthly include all day-to-day administration costs. These include text messaging, telephone/fax communication, postage, photocopying or scanning and other related fees.
The annual tax statement details all financials (income and expenditure) for the applicable year. At Joyce Property, we’ll charge you a small fee to cover this expense.
Aside from the aforementioned fees, other costs might add up due to unexpected incidents or unplanned expenses, such as:
Whatever the case, always make sure you understand all the fees you need to pay for, and don’t be afraid to ask questions.
At Joyce Property, we always encourage our clients to share their queries with us. We value open communication and honest feedback because these are crucial to bettering our business.
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