Managing a rental property sounds simple, but it takes time, effort, and a good eye for detail. That’s where property managers come in. They handle the day-to-day work, from collecting rent to dealing with repairs. Of course, this service comes at a cost. If you’re a landlord in South Australia, it’s important to understand how these fees work, what they cover, and what to expect. Let’s break it down.
What Do Property Managers Actually Do?
A property manager takes care of your rental on your behalf. Their job includes finding good tenants, collecting rent on time, sorting out repairs, handling complaints, and checking on the condition of your property. They’re also responsible for keeping all paperwork and lease agreements up to date.
In short, they act as the middle point between you and your tenant. And they charge for each of these services in different ways.
The Main Fees You’ll Pay
The most common cost is the management commission fee. This is usually a percentage of the weekly rent your property earns. In Adelaide, this rate often falls between 7% and 11%. On average, most landlords pay somewhere around 9% to 11%. In a few rare cases, it might go as high as 15%, especially if the property requires more attention.
Then there’s the letting fee, also known as the leasing fee. This is a one-time payment when a new tenant is found for your property. It usually costs about one to two weeks’ rent. This fee covers things like advertising, open inspections, and checking tenant applications.
Some managers charge for routine inspections too. These checks are done to make sure the property is in good shape and that tenants are looking after it. An inspection fee can be between $50 and $100 each time. Some property managers include this in their overall service, but others keep it separate.
You might also see a small administration fee. This helps cover rent processing, emails, paperwork, and calls. It’s not a big amount, typically $5 to $10 per month.
Extra Charges You Should Ask About
It’s not just about the main fees. There can be additional costs that catch you off guard. For example, if something breaks at the property, and the manager needs to organize repairs, they may charge a coordination fee. Sometimes this is a flat rate. Sometimes it’s a percentage of the repair bill. Either way, it’s something you should ask about upfront.
Also, remember that GST (Goods and Services Tax) applies to most of these fees. Make sure to check whether the quoted prices already include GST, or if it will be added on top.
Why Fees Vary So Much
Not all property managers charge the same. A big part of the price difference comes down to where the property is. In popular parts of Adelaide where properties are in high demand, managers might charge lower fees because there are more properties to manage. In quieter or more rural areas, fees can be higher because managing fewer properties means each one needs more attention.
Another reason for the variation is what’s included in the package. Some managers offer a bundled service with no extra charges, while others list every service and charge separately. Neither is right or wrong. What matters is what works best for your property and your budget.
Choosing the Right Manager
When comparing services, don’t just look at the price. Ask what’s included. Read reviews. Speak to other landlords. A cheap service might seem like a bargain, but if they don’t chase late rent or miss inspection deadlines, you’ll end up paying more in the long run.
Being clear about the costs will help you avoid surprises and stay in control of your rental income. Knowing the full picture also helps you find the right balance between affordability and quality of service.
If you’re a landlord looking to understand property management fees in Adelaide, take the time to read the fine print. Don’t be afraid to ask questions. A good property manager can make your life easier, but only if their fees are fair and their service is reliable.