As September 2010 passes, renters in Victoria have again seen a month with no sign…
If you are looking to rent your property, a real estate agent who specialises in rentals (also known as a property manager) will oversee the rental of your property in exchange for a property management commission.
(If you want to compare commission fees and other information between property managers in your area, you can click here to use our agent comparison service. Fee and commission information can’t be found anywhere else online.)
Visit our article here if you’re looking for information on selling your property instead.
What we’ve learned
The only statistical report in Australia showing property manager commission rates for each state is collated by LocalAgentFinder. Having connected property managers with property owners for over five years, and with over $2 billion properties registered on the service in the past twelve months, we have the historical data to provide you with an “average” for your state and help you understand what’s included.
What is the “average” property management commission?
Commission levels vary from state to state. What you actually end up paying will depend on your property, local market and the property manager / services you select.
How do I calculate the dollar amount?
The commission is calculated as a percentage of the weekly property rental figure. See below for how to work it out using your calculator:
Property Price x Commission Rate (%) = Property Management Commission Payable
On a $400 per week property at 7.66% commission, the following equation would apply:
400 (dollars per week) x 0.0766 (7.66 %) = 30.64 (dollars per week commission)
But keep in mind, this isn’t the only fee you’ll pay. A Property Manager will provide you with a comprehensive management of your property – not just rental collection. For an overview of the services they will provide you with and other potential fees you may incur, visit our article here.
Why do I need a Property Manager?
A survey of investors by Woolcott Research found that two out of five self-managing landlords interviewed had experienced tenants defaulting on rent. It also found that landlords who used Property Managers to manage their relationships with tenants faced fewer problems.
What do they charge in my area? Find the right agent to sell your property here!
The easiest way to find out what agents charge in your suburb is to use LocalAgentFinder‘s agent comparison service to compare local property managers. Remember, you can compare commission, fees and backgrounds using our free online service. It’s transparent, impartial and obligation free. Click here to give it a try now!
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The only place to compare agent fees online.