FAQS

Do I Need a Property Manager?

 

Given the risks and difficulties in managing tenancies, it is surprising that not all investment property owners choose to use a local real estate agent to undertake the management tasks on their behalf.

Not only is a thorough knowledge of the Residential Tenancies Act necessary to affect proper management and administrative process, the passing of a portion of risk to the agent in the principal and agent relationship justifies the agency fees alone.

Management fees are normally tax deductible and the stress and pressure attached to tenancies that go wrong is really not worth the risk. Furthermore, without access to the main real estate web site portals available to agents, finding a tenant in the first place is difficult; finding one that is subject to strenuous reference checks, almost impossible.

The day-to-day management of your tenant is not particularly arduous, however, the risks and potential difficulties compared to the relatively inexpensive management costs make the decision to use the arm’s length skills of an agent an easy one.

 

What Does it Cost to Manage my Property?

 

Most agents charge about 8.5% of the rent collected as a management fee. In addition to the management fee, an agent will charge between the equivalent of 2 & 3 week’s rent on each occasion the property is leased. Additionally, the agent will charge fees for inspections, condition reports, postage, petties, financial statements, etc.

As an overall percentage of rent, the additional fees can add up to representing over 18% of the yearly rent.

At dethridge Groves, our fees are calculated as an all inclusive flat percentage of the rent with no hidden or unexpected ancillary fees making it easier to budget your finances on a month-to-month basis.

Contact us on 9336 1166 for a chat about your Property Management needs. We can often tailor a fee structure to suit you.