By Published On: January 24th, 20248.1 min read

During our consultation with interstate investors, we often receive feedback like, “Why is the property management fee rate in Queensland so high? In Sydney, we only pay 5% or 6%.” or “What  makes your service different and competitive when the management fees are similar in QLD?”

In this video,  we will interpret the different fees that may be involved in the property management service and what differentiate us from others. If you’re interested in this topic, do not miss out!

2 Types of property management fee

Generally, management fees are divided into two parts: Letting Fee + Rent Collection Commission.

The Letting Fee is a one-off payment incurred when a rental agency finds a new tenant for the landlord. Services include open house viewings arrangement, tenants reference checks, screening suitable tenants, signing lease contracts, collecting bond and rent, and conducting entry condition reports before the tenant moves in. The letting fee in QLD is generally one week’s rent plus 10% GST. For example, if the rent is $700/wk, the letting fee would be $770/ wk. However, each state may have different practices. In New South Wales and Victoria, the letting fee is usually one to two weeks’ rent. In some remote areas, it can be as high as 3-4 weeks’ rent. In South Australia, Western Australia, and Canberra, the letting fee is generally between one and a half to two weeks’ rent. Specific fee charged and services provided depends on the location and type of property.

Rent Collection Commission, also known as property management commission, involves managing the property after a tenant moves in, including collecting monthly rent, confirming rent payments, arranging maintenance and repairs, conducting regular & exit inspections. The commission charged based on a percentage of the rent. For example, in Queensland, South Australia, and Western Australia, property management commissions typically range from 7% to 12% + GST. If the rent is $1000/wk, at the common rate of 8% + GST, the commission would be $88/wk (including GST). New South Wales has the lowest property management commission rates, ranging from 5% to 12%, while Victoria ranges from 6% to 10%. Commission varies depending on the type of properties, for example, fees for managing service apartments or student accommodation normally is over 10%. 

Letting Fee + Rent Collection Commission are the main management fees. While some cities may have slightly lower property management commission rates but higher in letting fees, so the overall difference is not significant. It’s essential to consider the overall costs within a reasonable range for the property type in the area. Additionally, there is a renewal fee which includes reviewing market rents, communicating and negotiating new rents with landlords and tenants, signing lease renewal agreements etc, usually is one week or half week’s rent + GST depending on different states.

Other related expenses of property management

  1. Advertising fee

Before advertising your property, landlords will be notified for the advertising fees. Different companies have different pricings, and the services provided may vary. For instance, some well-known platforms like REA offer various advertising options, from basic ads to top-tier premium feature listing ads with maximum exposure, with different pricing. Midas offers advertising services with the best cost effectiveness, ensuring that all advertisements are top-tier, maximizing visibility. Unlike most agencies that charge separately for advertising, professional photos, videos and signboards, we provide professional photography, drone shots and films, even sign boards, all included in Midas’ advertising fee.

Our advertisement of rental listings strictly adheres to the standards of property sales advertising, providing potential tenants with comprehensive information. Some agencies may charge a regular marketing fee on a monthly basis, these hidden costs need extra attention. Regarding property viewings, many agencies used to schedule open houses on Saturdays, while we arrange private inspections promptly based on enquiries and applications, sometimes even before or after office hours to accommodate tenants’ schedules, securing the quality tenants as soon as possible.

2. Regular Inspections

According to Residential Tenancies Authority (RTA) regulations, property managers can conduct routine inspections maximum 4 times a year. Some agencies offer one or two free inspections a year, extra charges may incur for additional inspections. At Midas, we provide at least three routine inspections every year, ensuring that the property is well-maintained. If any issues or damages are found during inspections, we will inform landlords immediately and provide solutions.

3. Bill management

Managing bills can be time-consuming, therefore some agencies do not offer bill management services. Midas provides bill management services with no additional charges, we deduct bills directly from rental income to save time of landlords on categorizing bills and streamline the process for future tax return.

 

4. Maintenance and repair fee

Some rental companies charge an additional 10-15% service fee on top of the quotation invoice when arranging repairs through contractors. At Midas, we maintained long-term relationships with reliable contractors and tradies, ensuring reasonable charges without additional hidden fees.



5. Financial year-end report

When landlords are applying financial year-end reports for tax deduction, some companies may charge extra for this service. As mentioned in our previous video, Midas provides free and customizable financial year-end reports. Landlords may request specific rent income allocations according to their tax requirements to minimize their payable tax.


6. Management termination and transfer fee

When terminating management services or transferring to another company, additional termination fees may incur in some cases. This transfer service, including preparing all the relevant documents for the new agency who take over, is already included in Midas’ services. In other words, if a landlord is not satisfied with our service and wishes to transfer to another company, we do not charge any additional fees.



7. Additional Value-added Services

In addition to the services mentioned above, Midas landlord clients will not only benefit from rental appraisal for all the properties, but also property market updates and cash flow strategy for all the properties. We assist in optimizing loans and taxes to maximize investment returns at no costs. Furthermore, we provide assistance with insurance claims and depreciation reports etc.

Would you like to learn more about our tailored and client focus property management service? Contact us for more details!

Wondering what sets Midas apart?

At Midas, our property managers are also landlords with multiple investment properties. This unique perspective allows us to understand landlords’ needs and offer mutually beneficial solutions for the long term. We excel at resolving issues promptly, especially during emergencies. For instance, Christmas season is the low season for lease. Midas is proactive. We prepare for photo shoots and advertisements well in advance, ensuring readiness even before property settlements.


Some properties are leased out within 2 days after handover. Despite having over 15 listings before the holiday season, we consistently lease out 3-4 properties weekly at competitive rents, showcasing the efficiency of our Midas team and our commitment to prioritizing owners’ interests.

Conclusion

That’s all for today’s video. If you have any questions or would like to know more about our service, feel free to reach out. I hope this video has been helpful, thanks for watching and see you next time!

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