Introduction:
Investing in real estate can be a lucrative venture, but it comes with its fair share of responsibilities. For property owners, the decision to enlist the services of a professional property manager often revolves around the question of property management fees. In this blog post, we aim to clarify what you get for the fees you are paying and shed light on the value that comes with having a time served professional manage your property.
Understanding Property Management Fees:
Property management fees in Perth, like in many other regions, typically include a range of services provided by property management companies. These fees can vary based on factors such as the type of property, its location, and the extent of services required. Commonly, property management fees are charged as a percentage of the property's rental income.
Key Components of Property Management Fees:
Management fee (or rent collection fee):
This is usually charged as a percentage of the weekly rent. This can vary from 7.7% to 9.35% for a standard fee structure. This fee ensures that the rent is collected, receipted and transferred to you as per your instructions. This covers rent arrears procedure, calling tenants when rent is late, sending breach and termination notices in order to ensure that the rent is paid. It also covers all of the tenant and landlord communication as well as all the maintenance, triaging the repair, quotes, instructing the work and payment of the invoice. Payment of the water, council rates and any other invoices.
Leasing fee:
This is charged at the start of every new tenancy. This is usually 2.2 weeks rent and includes, organising and attending home opens (coordinating this with the current tenant if they are still at the property), ensuring that the applications that are submitted contain all the information required and then referencing these applications to ensure employment, previous rental and personal references are obtained. Checking income affordability and conducting a search on TICA or NTD to ensure the tenant is not listed on any tenancy databases with a negative history in rental properties. Once the applications have been presented to the landlord and they have chosen the tenant most suitable, drafting up the lease, securing the first 2 weeks rent upfront and the bond which is then lodged with the bond administrator in line with legislation in WA.
Releasing fee:
Once the initial fixed term period is coming to the end, contacting both landlord and tenants to see what their intentions are. We then conduct a CMA (comparative market analysis) which will show us what the rent is in the current market and submitting this to the landlord for consideration. Once the rent for the new term has been agreed, drafting the lease for the tenants, sending it out for signing, monitoring the return of this lease and providing all parties with a signed copy. If there is a rent increase, requesting the increase of the bond in line with legislation and submitting these funds when they are received.
Marketing:
This involves taking professional photos of the property as in order to obtain the maximum rent for your property it needs to present on the internet as best it can. Once the photos are taken, the description of the property is drafted and added to the advertisement that will go on realestate.com.au The property will also be marketed on my website and on social media.
Property Condition Report (PCR or ingoing report):
This is a very important document that notes the condition of the property at the start of the tenancy. These reports are very important to protect you against any discrepancies at the end of the tenancy. By law the tenant is responsible for returning the property to you in the same condition as noted in this report. If the report is not detailed it could cost you when a claim cannot be substantiated against the tenant
Final Bond Report (outgoing report):
The final inspection will be conducted when the tenant vacates the property and using the Property condition report, we will check to make sure that the tenant has left the property in the same condition as the PCR less wear and tear. This report has to be conducted within 14 days of the tenant vacating and if there are any disputes then this is report that will be provided to the courts to determine any deductions from the bond.
Routine inspections:
These are inspections that are conducted 4 times a year (as per legislation) in order to ascertain if the tenant is maintaining the property to a satisfactory standard. These are vital for insurance claims if the tenant does damage the property, the insurance company will want to know what you did to mitigate this damage and the routine inspections are a good way to do this. We are checking for any obvious maintenance issues such as leaks.
Administration fee:
This fee covers all communication charges, production of the monthly statements, and processing fees.
There are various ad hoc charges that your agency may charge also, such as Court attendance, insurance claim preparation, TICA/NTD checks and end of financial year statements.

In Perth, Western Australia, property management fees are an investment in the long-term success of your real estate venture. By understanding the breakdown of these fees and recognising the value they bring, property owners can make informed decisions to safeguard and optimise their property investments. Ultimately, the decision to enlist professional property management services is not just a financial one but a strategic move towards ensuring the prosperity and longevity of your real estate portfolio.