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Rental Property Management Fees In Newcastle

22/10/2018

When considering turning a home into a rental property in Newcastle, one of the first questions asked by a new landlord will be "How much will the rental property management fees be?".

As we advise each investor we meet, property management fees should be considered alongside a mix of many other aspects. The old saying "cheapest is not always best" certainly applies to rental property management fees.

Why? Here a just a few reasons (but don't worry, we also answer the question...!).

Rental property management fees - why cheapest isn't best

A management fee alone provides no indication of the level of service, expertise or motivation you will experience from the property manager you will be entrusting with your investment
There are endless online property management companies which will offer a basic service for very low cost (some with management fees as low as 2.2%). You get what you pay for, with much of the more challenging and less-automated work being left to you as the owner (such as legal compliance, maintenance management, rent reviews, regular inspections, and so on) . We cover this in more detail in the article "Should I Use An Online Property Management Service Instead of Hiring A Property Manager?"
Often you are not "comparing apples with apples". Rental property management fees will vary between agencies, with a significant portion of the difference in costs being made up not from the property management fee itself but in the additional costs which may be incurred throughout the management of the property. These include various costs for lease preparation, lease renewal, monthly and end of financial year statements, admin fees, and even maintenance management fees. Not all agencies charge these fees and those who do may charge different rates.

What are rental property management fees in Newcastle?

We have created an article to help answer this question here: "Newcastle Property Management Fees and Charges - A Comparison".

In this article we compare the differences between our own rental management fee structure and that of a typical alternative property management company in Newcastle. We transparently outline our own fee structure and provide a typical alternative cost structure for comparison.

Note that we are one of very few property management companies in Newcastle to publicly list our fee structure online. Most companies will shelter this from you until you are further along in making an enquiry.

The difference between management fee structures may seem quite minor, but as we show, our own property management fee structure can result in an annual cost of less than $2,000, including renewing a tenant for an additional lease term. This same service may cost in excess of $3,000 from another property management company.

Importantly, as mentioned at the start of this article, fees should be taken into account alongside a mix of many other factors when considering the right property management company in Newcastle for you.

So, how do you choose the best property management company in Newcastle?

We've provided a suggested approach in 6 Steps To Find The Best Property Management Company In Newcastle.

We trust this information has been helpful to you. If you are seeking experienced, transparent and professional property management in Newcastle, contact us now. We'd love to meet you and discuss your investment.