In this segment, the speaker outlines typical property management fee ranges and the factors influencing them. Residential management fees generally fall between 3% and 8% of rent collected, while commercial fees are more nuanced. Additional charges may include recoverable costs such as valuations, legal preparation, and depreciation reports, each priced according to the provider's time valuation. The speaker highlights the growing time and financial burden of tenancy disputes handled through NCAT, noting that documentation now often mirrors legal counsel standards. Leasing fees for residential letting are described as ranging from one to three weeks' rent, exclusive of GST. The discussion then shifts to client service preferences: some clients opt for minimal tenant‑administration services (rent collection, renewals, market rent adjustments), while others entrust the manager with comprehensive asset management duties, including strata meetings, land‑tax objections, insurance claims, maintenance planning, and lease renewals. The speaker emphasizes that full‑service management demands significant responsibility and time, which is reflected in higher fees.
Chapters
It will vary between 5 to 8% of rent collected. Commercial, commercial's another beast entirely, 'cause it's a lot more nuances, but really, really broadly speaking, and again, the income base is another thing that comes into it. Is it one tenancy? Is it several? The duration of your typical tenancies. But as a really rough guide, 3 to 7%, um, of rental income collected. Uh, and of course there are other fees that come into it, whether they're recoverable charges, uh, fees for things like valuations, uh, preparation for legal matters, coordination of depreciation reports, you know, fee for service if you will. Everyone does price their time differently. Um, I can tell you one that's a, a very, very current discussion is time required for this tenancy disputes such as NCAT. Uh, that's the, uh, the, uh, court, if you will, for retail and residential tenants. Um, that, that, that's becoming very costly, both time and, uh, financially. Uh, there's a lot invested the system itself was quite straightforward, is now almost morphing a local court matter and requires— and there are expectations of members that documentation is prepared in a manner that would almost replicate a legal counsel's file when entering a matter. It's, it's, it's becoming quite a, quite a thing. Okay, things like leasing fees. Leasing fees are when the agent is negotiating and processes tenancy applications. And again, we speak residentially. And then facilitates the letting. That can vary anything from 1 to 3 weeks. rent pending. And again, these fees, you know, are broad, and we're not talking about the GST applicable. Additional services will vary depending on what your needs are and how the given professional values their time for service and, and what's required. Look, we've, we, we've had some clients Whom have really wanted us to give them the least amount, for example, in which our responsibilities were mainly focused around tenant administration. What we mean by that is we're keeping an eye on the rent collections, we're dispersing it, we're leasing profiles, arranging rental renewals and market rent. They didn't want much else. They, they really wanted to be hands-on, so priced accordingly. We do have other clients who probably know less about their asset than we do, that we are basically, uh, privileged to be given almost an adoption of it, in which we may do everything from strata meetings to land tax objections to insurance claims valuations, lease renewals, maintenance plans. You know, it's a great position of trust, but it is an immense responsibility. And those clients that understand that value typically don't so much balk at what that fee requires that to be because it is quite time intensive. And it does require detail. Your responsibility.
