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Common Property management fees that you need to know.

For those new to the rental market, property management fees can have so many hidden extras it can be difficult to keep track of them and know what they are all for. Which ones should you pay for? Which ones are just extra charges? These questions should be asked if you want to get the most out of your money and your rental return.

Here are some of the most common property management fees that you should know about:

Commission Fees

In most instances, property management commission fees are a percentage taken off the total rental income of the property. It's perfectly normal for the agency to take the commission off the total rent that is collected from the tenants. Therefore, the forwarding balance already has the rental commission fee taken out of the balance before being sent to the owner.
These deductions are usually a percentage of the rent in total. In the Brisbane area and around Queensland, the typical percentage rate is somewhere between 7 to 9 percent. These commission fees can be negotiated with the agency and reflect the services they include.

Letting Fees

Letting fees constitute the work that property managers do in order to find the right tenant for the property. This includes the preparation of the letting documents for the new tenant and finding a tenant in the first place. One thing to keep in mind is that the letting fee may vary depending on the agreed length of stay written into the rental contract.
Fair Trading has defined the maximum allowable fees regarding property management fees, but the numbers could vary, depending on what was specified in the agreement. Letting fees are usually deducted from the first rental payment and is payable to the property manager once the rental contract is signed.

Lease Renewal Fee

A lease renewal fee may be charged by the property manager if the current tenants agree to a lease renewal. This leasing fee covers the costs associated with processing the lease papers. The lease fees can be deducted as either a percentage of the tenant's weekly rent or as a one-time fixed fee.

Administration Fee

Property management agencies may charge a nominal fee called "Administration fees" that you see every month on your statement. This fee covers costs associated with postage, phone calls and trust accounts.

End Of Year Financial Statement Fee

This fee is charged at an agreed and fixed rate. It covers the preparation of the end of year financial tax statement


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