The Hidden Extra's in Property Management 

As a property owner, you may have heard of property management services that promise to take care of everything for you and the management percentage seems competitive and fair. However, you may not know that hidden fees can be involved that may not be immediately apparent. Here are some common add-on fees to look out for in property management services:

Maintenance Fees: Some property management companies charge a maintenance fee not included in the monthly management fee. This fee can be a percentage of the cost of the maintenance work or a flat fee. Some agencies also employ in-house contractors to attend maintenance which is never ideal because it creates a conflict of interest and potential for overcharging.

Inspection fees: Some property managers have a fee for each inspection conducted. This can be a considerable cost if inspections are carried out regularly as they should be for best practice risk management.

Financial year summary: Some agents charge for this report which can be provided at the end of a financial year to consolidate income and expenditure. The fee for this report can vary.

Monthly sundry fee: Some agents charge a monthly fee for sundries. Look for the fine print.

Advertising Fees: If your property is vacant, some property management companies may charge a fee in addition to the letting fee. This fee is intended to cover the cost of advertising and professional marketing, often outsourced.

Lease Renewal Fees: Some property management companies charge a fee when a lease is renewed. This fee can be a percentage of the rent or a flat fee.

Administrative Fees: Some property management companies may charge an administrative fee for paperwork, accounting, and other administrative tasks.

Early Termination Fees: If you decide to terminate your contract with the property management company early, they may charge a fee. This fee can be a percentage of the remaining contract or a flat fee.

Commission on a future sale: Some agencies who operate a sales department will claim that the tenant is an office lead in the event of a sale to the tenants. Look out for this clause because it is not a reasonable expectation for the agent to claim a full sales commission if you agree to sell the property to the tenant in the future.

It's important to read the contract carefully and ask the property management company about any additional fees that may be involved. If you're unsure about a particular fee or feel that it's excessive, consider finding another service provider.

In addition, it's important to understand what services are included in the management fee because the extras can add up quickly and eat into your profits. Ensure you read the contract carefully and ask questions about any fees that may not be immediately apparent. You can find a property management company that offers transparent pricing and high-quality services by doing your due diligence.

If you want to know about our management services and fee structure, please get in touch. We assure you that there will be no hidden surprises; better still, we deliver value!