Do you have a property in the Sydney area that you would like to rent or lease? If so, you may be considering getting a real estate agent or property manager to help you manage the property. RealConnect provides a simple and effective way to find & compare local property managers. We source quotes from multiple real estate agencies to help you find the best property manager in Sydney to rent your property, or to provide a free rental appraisal. Of course, there is the option to manage your rental property yourself but you should not underestimate the amount of time and energy it takes to manage a property effectively.
The job of a good property manager is to handle a lot of tasks on your behalf. Here is a list of the main ones:
Your property is valuable (perhaps it is an investment property) so you want it to be well looked after but you also don’t want to be paying excessively for the service because obviously this will affect the return on your investment.
So, how do you find the right property manager and how much can you expect to pay for the service? Let’s find out.
When selecting a property manager, you firstly need to ensure that they are going to deal with all the tasks mentioned above. But there are also other considerations because not all property managers offer the same services. There are also differences in the way they charge. It is therefore very important to consider and compare a number of different property managers before making up your mind.
Finding property managers so that you can compare what they have to offer is what we do at
RealConnect – and it is a service that will cost you nothing at all. RealConnect will provide proposals from a number of property managers that operate in your area for you to consider. The great thing about going this route is that all these property managers will now be competing for your business by submitting proposals to you. This enables you to take a closer look at what they are offering so that you can make an informed decision.
Before taking on a property manager you need to meet and talk to them. Here are some questions
you might consider asking:
This last point is obviously very important and needs to be looked at in more detail. When you are speaking to property managers it is vital that they supply you with a detailed list of their fees including what is covered in their basic management fee and what services will attract an extra charge. When it comes to fees you need to read the fine print!
Before we look more specifically at property management fees in Sydney, it is important to understand some of the different ways that property managers charge for their services.
o Internet marketing fee – up to $300
o Lease renewal fee – 1 week’s rent
o Admin fee – $5-$10 a month
o Photographer’s fee – $75-$150
o Tenancy database check – $10-$12 per person
o Property condition report – up to $100
o Routine inspection fee – $10-$30
o Annual Statement fee – $25-$30
o Lease transfer fee – up to $500
o Court or tribunal attendance – billed per hour
All of these costs can add up which is why it is important to ascertain which are included in the property manager’s basic management fee.
Now let’s look more specifically at the property management fees in Sydney.
In Sydney, property managers typically charge between 5% and 10% of the rent on your property. One source who claims to have recently canvassed over 200 Sydney property managers puts the average at 8.8%. Interestingly, the closer the property is to the CBD/metropolitan area the lower the fees. This is because the property prices are higher and there are more property managers competing for them. Conversely, the fees are higher in suburban, rural and regional Sydney where property values are lower.
Another point worth mentioning here is that property managers will often charge lower rates if you give them more properties to handle. For example:
Once again it is important to stress that some or all of these charges may be included in the basic management fee. But if that fee is low then it is likely that some of these costs will be charged separately.
This is another reminder that it does not always make sense to go with lowest management fee and always insist on a list of exactly which costs are covered.
One final word must go to a fairly new method of property management fee which is charging a flat fee rather than a fee based on a percentage of rental. Typically this fee could be $100 a month regardless of the amount of rent the tenant is paying. Some of the property managers who charge a flat fee do have additional charges so once again it is important to get a breakdown of the quote.
Click the button below to get free proposals from your local real estate agencies and start comparing...