How much do real estate agents charge renting?
Are you planning to rent out your house in 2022? In exchange for a property management commission charge, a real estate agents that specializes in rentals (or property manager) will handle the rental of your home.
Continue reading to discover more about property management costs and how they differ across Australia and the property management service real estate agents fees that you can expect to pay.
What do property management costs entail?
Property management fees cover the costs of promoting your home and maintaining renters while they are residing there, and services include complete maintenance of the property.
It is also the real estate agents compensation for finding a renter for your home, and it is how a rental property agency generates money by managing a property.
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Property management costs, often known as real estate rental fees, are charged as a percentage of the property’s weekly rental amount. The national average for property management costs is 7.5% fees including professional property manager costs.
When the home is rented, there is also a letting charge that is normally indicated as a number of weeks’ rent. In Australia, the average is 1.4 weeks’ worth of weekly rent, and fees vary state-wise.
What is the “typical” commission rate for property management?
Commission rates vary by state and can range between 5% and 15% with additional any separate fee if required. What you actually spend will be determined by your property, the local market, and the services you choose.
It’s also worth noting that property management agency fees or real estate agents fees are subject to GST, so double-check that the suggested charge includes GST before hiring a good property manager.
Many agencies may impose additional fees on top of management fees, so it’s critical to scrutinise the tiny print when choosing a property manager to avoid any surprises.
A fee closer to 5% may indicate that you are only paying management fees, whereas an ‘all-inclusive’ fee may cost you up to 15% of your weekly rental income.
What are the different kinds of rental property management fees?
Administration charge
Management fees cover the property manager’s routine tasks with prospective tenants, which often include:
- Receipt of rent collection
- Repair and maintenance planning
- Key organisation for any inspections or tradesmen
- Taking care of the payment of council fees
- Communication between renters and owners
- Organising water readings
- Taking care of everyday administrative chores such as phone, tax, and email inquiries. If applicable, liaison with the body corporate.
What exactly is a renting fee?
A letting fee is the price that a property management charges for their services in finding a new renter for a vacant property.
You may also like to read: Can real estate agents check your rental history?
This includes conducting private and open inspections to select a suitable renter, executing rental checks on submitted applications, drafting legal documentation, collecting the bond, and lodging it with the RTVB. It also includes the service of preparing an investment property condition report.
Marketing expenses
This cost covers online marketing on real estate listing websites as well as a ‘for lease’ sign board to attract new renters. It may also cover the cost of professional photography.
Fee for lease renewal
Tenants often sign a one-year leasing agreement. If you wish to extend this contract at the conclusion of the lease period, the property management will charge a fee to sign the existing renter onto a fixed-term agreement. This fee is often calculated as a percentage of the annual rental return.
Fees for routine inspections
The property manager may inspect your rental property on a regular basis as part of the agreement to check on the state of your property and so charge a service fee.
Fee for Annual Statements
The price for obtaining your yearly summary statement for the previous fiscal year.
Fees for the Civil and Administrative Tribunals
If you need to take a tenant to court, you may pay service fees such as court preparation and travel charges. This is normally calculated on an hourly basis.
How much does it cost to hire a rental property manager?
The question “How much are property management fees?” should be on your list of queries for possible real estate agents to rent out your home, and this is where you can find out how much each agency deviates from the norm for each state and large city.
What are the property management costs in 2022 in Sydney, New South Wales?
Property management costs in NSW are far cheaper than the national average, and are the lowest in Australia at just 5.8%.
The rental fee is also lower than the national average, at 1.1 weeks. Property management costs are very cheap in Sydney, at just 5.4%, although the leasing charge is significantly more than the state average, at 1.2 weeks.
What are the property management costs in Melbourne, Victoria in the year 2022?
At 5.9%, property management costs in Victoria are the second lowest in Australia. The rental period is around 1.5 weeks.
Melbourne’s property management costs are at 5.8%, with the same average rental fees as the rest of the state.
What are the property management costs in Brisbane, Queensland in the year 2022?
Property management costs in Queensland are right on the national average at 7.5%, while rental fees are just one week’s rent on average.
The average property management cost in Brisbane is 7.3%, which is significantly lower than the QLD average, but the leasing charge is the same.
What will property management costs be in Perth, Western Australia in 2022?
Property management expenses in Western Australia are 8.7% more than the national average, while rental fees are 1.7 weeks on average.
Property management rates in Perth are comparable to those in Western Australia.
What will property management costs be in Adelaide, South Australia in 2022?
Property management or real estate agents costs in South Australia are 7.5%, which is in line with the national average, while the rental price is 1.9 weeks, which is somewhat more than the national average.
Adelaide property management costs are the same as the rest of the state.
