When you own an investment property, you are looking to minimise your costs and save money. We have a very transparent flat rate for management fees and the reason we can offer this is not just because its fairer, but because we don’t feel the need to spend huge amounts of money on fancy cars and office fit outs. At Green Kite Property Management we have adopted a flexible work approach which means we can work anywhere at anytime (as long as there is internet!). Its important for us that tenants have a property which they love and want to continue to stay and be part of the community into the future, its all about what attracts a great tenant. We believe maintaining good relations with the tenant is important as this results in better communication between the investor, property manager and tenant. This approach also encourages the tenant wanting to look after the property. In this article, we delve into the fees a property manager may charge and break it down for you.
Management fees – why does Green Kite Property Management charge a flat rate?
Traditionally a real estate agency or property management agency will charge a percentage of the rental value for their management fees. Whilst there are no hard and fast rules as to what an agency will charge, we believe that the most fairest way to charge management fees are a flat rate. This is because regardless of whether the property rental value is $300 per week or $1,000 per week – the same amount of work is required. We charge a flat rate because realistically if a property has been tenanted properly, there should be minimal time each week spent on that property. We charge $25 plus GST per week which in “time” speak is ½ an hour each week spent on one investment property or over the course of 52 weeks – $1,300 (plus GST).
This is the one time that Green Kite Property Management charge the traditional fees and there is good reason for this! The letting fee which we charge (one week’s rent plus GST) encompasses our time spent attending open homes, private inspections, getting to know tenants and getting a good feel of what type of tenant will fit that property. It includes negotiating between owner and tenant and preparing the relevant forms and ensuring the property meets the legislated compliance.
Green Kite Property Management does not charge for routine inspections. At Green Kite Property Management, routine inspections are covered under the management fee. In Queensland, routine inspections should be conducted four times per year and we believe in saving money for our investors where we can. Our routines cover all aspects of the property including photos.
Green Kite Property Management refuses to charge a maintenance fee. There are some agencies out there that charge for every time a maintenance issue arises and adds a percentage on top of the maintenance invoice. We don’t feel that this is fair and we believe maintenance is part of managing the property. As an investment owner, your property manager should be advising you of any upcoming maintenance that may be required in the future and flagging these costs with the owner at each routine inspection.
Reletting / renewal fees
We begin talking to the tenants approximately three months before their lease is due for renewal. It doesn’t take long, it’s a yes/no answer or we commence negotiations. In all honesty it can be as little as 3 telephone calls or emails. Green Kite Property Management doesn’t charge for this service. There is minimal paperwork and we don’t feel that its fair for this service to be a fee to our investors so we have incorporated this into our management fees.
Advertising and Marketing fees
Our advertising and marketing fees are simple– we charge you what we get charged! There are some agencies out there that will charge the investor a percentage above the real cost. There are some that charge an exorbitant flat rate which will also include writing the property’s advertisement for www.realestate.com.au. Green Kite Property Management does not charge that and we even write the advertisement for free!
If you are wanting to know more about fees and the costs associated with your investment property or would like a free appraisal, then give Green Kite Property Management a call on 0421 757 100 – we are only more than happy to help you achieve your investment goals!