Are you looking for a property manager to manage your investment property in Brisbane and not sure what you should be paying? Or are you confused by all the different fees property managers charge?
We don’t blame you if you find it confusing. In many cases it’s intentional and low commissions are used to lure clients by drawing attention away from hidden fees. Each agency has a different fee structure, so we recommend you calculate your total annual fees to get a true idea of what you’ll be paying.
“CALCULATE YOUR TOTAL ANNUAL FEES!”
Don’t just focus on weekly fees such as the management fee. Remember to factor in any one off advertising costs, letting fees, lease renewals, incidentals or any other reoccurring fees your property manager may charge.
Typical annual property manager cost in Brisbane
For an average property receiving $400 per week in rent, you’d typically expect to pay anywhere from $1,400 to $2,500 annually for a property manager in Brisbane. This price range factors in all the regular ongoing fees and regular letting costs, so you can expect the fees to be less for following years if your tenants stay on and letting is not required. This price range does not factor in one off expenses that may be charged by some agencies – for example, professional photography, maintenance fees, tribunal fees, upgraded advertising etc.
We won’t go into too much detail about the levels of service offered by various agencies in this article, but keep in mind that there can be a HUGE difference. A property manager at a cut-price agency will be managing a larger portfolio and simply cannot offer a premium service – this becomes evident whenever you or your property requires some extra attention… But to be fair, paying full price doesn’t guarantee good service either, so make sure you do your research! Decide if price or service is more important in your situation and go from there.
You may find this article helpful to determine the level of service a property manager offers:
21 questions to ask when choosing a property manager
Now we’ll break down all the common fees that are charged by property managers in Brisbane and we’ll separate them into three main headings (start of lease, ongoing fees, incidentals).
START OF LEASE
Letting Fee:
The letting fee is charged when a new tenant is sourced for a vacant property. It covers all the work involved in the letting process, such as open homes, admin, processing applications, background checks, reference checks, tenancy database checks, entry condition reports etc. In some cases it will cover advertising as well.
What’s common in Brisbane? The vast majority of property managers in Brisbane charge 1 weeks rent plus GST. Some agencies charge 2 weeks rent plus GST. There is a few that charge a fixed price instead of basing it off the weekly rent. There is also a handful that don’t charge a letting fee, but expect the difference to be made up by other fees.
What we do? We charge 1 weeks rent plus GST. We also include not just standard, but UPGRADED advertising on RealEstate.com.au and Domain at no extra cost (this alone would usually cost hundreds of dollars).
Advertising Fee:
An advertising fee covers advertising costs when listing your property on the major portals (such as RealEstate.com.au and Domain). It’s usually a fixed cost.
What’s common in Brisbane? Most agencies will not charge for standard advertising. Some charge up to $200.
What we do? We don’t charge for standard advertising. In fact, we use upgraded advertising for all our clients and don’t charge for that either!
Upgraded Advertising:
When marketing your property, you’re given the option to use upgraded advertising (priority in the search results and more exposure) – In some highly competitive suburbs upgraded advertising is vital to ensure shorter vacancy periods.
What’s common in Brisbane? Most agencies will charge cost price for upgraded advertising. It depends on the suburb, but this is usually between $200-$400 to list on the two major portals.
What we do? We use upgraded advertising for all our clients and don’t charge for it!
Photography:
You’ll require some photos to market your property online. Most property managers will provide amateur photography at no charge, but you’ll usually need to pay if you want professional photography.
What’s common in Brisbane? Most agencies will charge cost price for professional photography – it’s usually fairly competitive at around $100 or so, but some charge more. Some agencies will throw in professional photography as a sweetener.
What we do? Mention this and we’ll include professional photography at no cost.
Signage:
Some agencies will charge a fee to install ‘for rent’ signage at your property during the letting process.
What’s common in Brisbane? It is not common to be charged for standard signage, but there is some agencies that charge. Some agencies don’t install signage as part of the standard marketing either. There is usually a fee for premium signage which can vary depending on the type of sign and whether it requires a custom design etc.
What we do? Signage is provided for all our landlords and we don’t charge for standard signage.
Tenancy Database Checks:
Some agencies will charge a fee to check the history of prospective tenants on a tenancy database.
What’s common in Brisbane? Most agencies do not charge a fee for this, but some will charge $10-$20 per search.
What we do? We don’t charge for tenancy database searches.
Inventory Management Fee:
This fee is only relevant for properties which are rented furnished. It covers the work required by the property manager to catalogue all inventory and ensure broken or stolen items are replaced.
What’s common in Brisbane? Most agencies do not charge a fee for this. The ones that do range up to a few hundred dollars depending on the amount of inventory.
What we do? We don’t charge for this – it’s covered by the management fee.
Title Search:
When signing a new management agreement, your property manager will need proof of ownership and will conduct a title search.
What’s common in Brisbane? Most agencies charge cost price for a title search – around $20-$30.
What we do? We don’t charge for a title search.
ONGOING FEES
Management Fee (commission):
This fee covers all the day-to-day work that’s involved in managing a rental property. The vast majority of agencies will charge a percentage of the rent that’s collected each week, but there are some that charge a fixed fee.
The management fee usually garners the most attention, but it can be misleading. Keep in mind that there are many agencies that have a headline management fee of 5% plus GST, but work out to be more expensive than another agency with an 8% plus GST management fee – Always work out your total annual cost!
What’s common in Brisbane? Most agencies charge a commission of 7% to 9% plus GST. Some cut-price agencies go as low as 5%, but there is usually some hidden fees. There are some agencies that charge more than 9% plus GST.
What we do? If you’d like some more details about our fees, just reach out in the live chat window, or visit our contact page.
Administration Fee:
This is charged on an annual or monthly basis and is to cover bank fees incurred from tenants paying rent, trust accounting, monthly and annual statement preparation, postal costs and various other expenses.
What’s common in Brisbane? Most agencies charge a small fee each month – $5 plus GST is very common. There are some agencies that charge more and some agencies roll their admin fees in with their management fee.
What we do? If you’d like some more details about our fees, just reach out in the live chat window, or visit our contact page.
Bill Payment Fee:
Most property managers can process bills such as water and sewerage, rates or strata on behalf of their landlords, but there is often a fee involved.
What’s common in Brisbane? Some agencies charge 5%-10% of the total bill cost, some charge a small fixed fee per bill and others don’t charge any extra for the service.
What we do? We don’t charge to process bills for our landlords.
INCIDENTALS
Routine Inspections Fee:
Routine inspections are carried out by your property manager to ensure your investment is looked after and you are informed about any maintenance items. A good property manager will conduct 3-4 routine inspections per year.
What’s common in Brisbane? A lot of agencies don’t charge for routine inspections, although there is a reasonable amount that do. The fee typically varies from $25-$100 per an inspection.
What we do? We don’t charge for routine inspections.
Maintenance Fee:
The Maintenance Fee is charged when tradespeople are booked for repairs or maintenance items. It is usually charged as a percentage of the final invoice cost.
What’s common in Brisbane? Most agencies don’t charge this fee, but there is quite a few that charge 5%-10% of the invoice cost.
What we do? We don’t charge a maintenance fee.
End of Financial Year Statement:
This is a fixed fee some agencies charge to prepare an end of financial year statement. The EOFY Statement shows all of your income and expenses over the financial year and will be required at tax time.
What’s common in Brisbane? Most agencies don’t charge this fee, but a sizable amount charge anywhere from $20-$100.
What we do? Another fee that About Property Management does not charge.
Lease Renewal Fee:
This fee is charged when a new lease is signed by your existing tenants. Usually leases are signed for 6-12 month terms. There is actually quite a bit of work involved with lease renewals and the process starts 3 months out by liaising with the owner and tenants (to keep in line with legislative requirements). There can be some back and forth and appropriate notices may need to be sent to the tenant in order to avoid the lease falling into a periodical agreement – which can affect landlord insurance in some cases.
What’s common in Brisbane? Many agencies will charge half a weeks rent plus GST. There is a decent amount of agencies that do not charge a fee for lease renewals also.
What we do? About Property Management does not charge a lease renewal fee. We see lease renewals as a fundamental part of managing a property and roll this in with our management fee.
Tribunal Fee:
In some cases there are tenancy issues and you will need to take your tenant to court. Your property manager will need to represent you at tribunal.
What’s common in Brisbane? Most agencies will charge an hourly rate between $40-$90 for preparation and attendance. Some may charge a fixed fee instead.
What we do? If you’d like some more details about our fees, just reach out in the live chat window, or visit our contact page.
We are property management specialists and we pride ourselves on the level of service we provide our clients. If you’re unhappy with your current property manager, please give us a call and see how we can help!
