If you are a property owner looking for a reliable and affordable property manager, you might be tempted to compare different agencies based on their management fees. After all, that is the main cost that you will have to pay every month, right? Wrong.

Many property management agencies have other “hidden” fees that they either refuse to disclose or are very reluctant to disclose prior to you signing with them. These fees can add up to a significant amount over time, and they can make a big difference in your return on investment.

We are going to reveal some of the most common hidden fees that property managers charge, and how they can affect your bottom line. We will also show you how Homes4Rent, a trusted and transparent property management company, can save you money and hassle by knowing exactly what you have signed up for so that the cash you think that you have, is the cash that you actually have.

Administration Fees

Administration fees are the charges that property managers apply for the general administration of your property, such as preparing statements, invoices, receipts, and other documents. These fees can range from $5 to $10 per month, depending on the agency. While they may seem small, they can add up to $60 to $120 per year, which is money that you could have saved or invested elsewhere.

Lease Renewal Fee

Lease renewal fee is the fee that property managers charge when they renew the lease agreement with your tenant. This fee is supposed to cover the cost of negotiating the new terms, updating the contract, and conducting a property inspection. However, some property managers charge up to half a week’s rent for this service, which is excessive and unfair. For example, if your rent is $500 per week, you could end up paying $250 every time your lease is renewed, which could happen once or twice a year.

Marketing Fee

Marketing fee is the fee that property managers charge for advertising your property to potential tenants. This fee covers the cost of taking photos, writing descriptions, posting ads, and conducting viewings. However, some property managers charge up to $300 for this service, which is way too high considering the availability of free or low-cost online platforms for property marketing. Moreover, some property managers charge this fee even if they fail to find a tenant for your property, which is a double loss for you.

Closure Fee

Closure fee is the fee that property managers charge when you terminate your contract with them. This fee is supposed to cover the cost of finalising the accounts, transferring the bond, and handing over the keys. However, some property managers charge up to $495 for this service, which is outrageous and certainly a fee that you need to be informed about prior to any contracts being signed.

QCAT Fee

QCAT fee is the fee that property managers charge when they represent you in a dispute resolution case at the Queensland Civil and Administrative Tribunal (QCAT). QCAT is an independent, accessible tribunal that efficiently resolves disputes on a range of matters, such as tenancy issues, bond disputes, and damage claims. However, some property managers charge up to $150 per case for this service. 

So Why Choose Homes 4 Rent?

These are the most common fees, but individual agencies may have additional fees that are less common. As you can see, there are many hidden fees that property managers don’t want you to know about, and they can significantly reduce your profit and satisfaction as a property owner and catching you buy surprise leaving you out of pocket for much more than you expected. Many agencies will not reveal these costs to you until you are at the point of signing the contract, at which time you may feel that it’s too late to go back and change your mind; that you may as well follow through now that you are so far along in the process. That’s why you should choose Homes4Rent, a trusted and transparent property management company that has a transparent fee structure.  What you see is what you get! We provide a high-quality service that includes finding and screening tenants, collecting rent, conducting inspections, arranging repairs, and handling disputes. To speak to one of our friendly team contact us and we will more than happily discuss your property management needs.