Every agency sets their own management fee which can range anywhere from 5% to 12% or more! It’s the elephant in the room. So this begs the question of why? And what’s the difference between a 5% agency and one that’s more expensive?
The answer is often in the fine print. An agency may offer a lower management fee, however may charge additional fees (annual statements, routine inspections, admin etc) which, when calculated over an annual period, may be on par with an agency with a higher rate and less additional fees.
It’s important to consider all of these elements.
Case Study
A house in Moorooka, Brisbane rents for $700 per week. The landlord considers two agencies:
Errigal Property has a management fee of 8% and Agency B has a fee of 6.6%.
If based purely on the management fee, you might well ask why not take the cheaper option?
However when factoring in the hidden fees and calculated over an annual period, the results can look very different.
In fact, Errigal Property, with our higher management rate, may well come in at a lower cost overall.
