Property management fees can be difficult to comprehend at first. There are so many different fees, and so many different aspects to everything, making it difficult to know where your money’s going.
There are two distinct types of property management. We’re able to hire a property manager to seek appropriate tenants for us, or the alternative – we can hire the property managers to maintain our property after we’ve found the appropriate tenants.
When contacting a property manager for your property, no matter the location, there are several things to consider. One crucial element is knowing the fees and charges you’re going to be given.
While each agency may differ in fees, here’s a selection of property fees most commonly charged:
- Management fee (% based on rent collected)
- Leasing fee
- Internet marketing fee
- Ongoing inspection fee
- Property Condition report fee
- Routine inspection fee
- Administration fee
Questions to Ask
In addition to fees and commissions, every landlord should receive peace of mind knowing their property manager is taking care of their property. Questions which need to be posed before choosing a property manager include:
- How long has the property manager been working for?
- How many properties are they handling at this time?
- How do you handle repairs, modifications and alike requests from tenants?
- How often do you inspect repairs once they are complete?
- How would you handle a tenant who owes money?
- Do you have much experience, if any, with tribunals?
Making a property investment, given the right understanding and investigating, can be one of your smarter decisions. Ideally, you will be seeking to generate maximum return on any investment you make. But also consider that becoming a landlord is taking on board a massive role, and may soak up much of your time. Per this, property managers also offer professional services/solutions, such as:
- Timely collection of rental payments
- Timely banking directly into your account
- Property statements offering thorough detail
- Regular suggestions on making greater returns
- Annual reviews
- Organisation of renovations or refurbishments
- Organisation of quotes or trade resources
Changing Property Managers
Changing property managers can be a tricky process, but not as hard as some may have you believe. In order to do so, you can need to firstly go over your contract. Contracts will vary, some call for 30, 60 or even 90 days notifications. Whatever the case, you need to provide the property manager with a notice of your intention until the period ends. If you’re keen to get along with things, and cannot wait the duration, there is the option of paying out the management fees and switching property managers more promptly.
There is an easier way of dealing with these disputes, however. If you switch to Leasi, they will help you change property managers in two weeks or less, wherever your location. Offering experience in the field, Leasi hold a genuine understanding of how to handle any situation, whatever the state.
If you are looking to start your investment journey from the start, make sure you give the experts at iBuildNew a call to discuss your options. There are still affordable and well located house and land properties for smart book a call online.