It is important to know exactly what services your property manager is responsible for providing you and what services are considered “extras”.
Each agency may have a slightly different definition of what ͚standard͛ services and ͚extra͛ services are so it is really important that you educate yourself before committing to having the agency manage your property.
By knowing what services your property manager will provide you, you can be guaranteed that your expectations will be matched to the services offered by the agency and that you understanding what you are being charged for.
Common “standard” services your property manager may provide can include the following
- Finding tenants if the property becomes vacant
- Collecting the rent
- Provide inspection reports (the frequency can vary from agent to agent)
- Ensure the property remains in a reasonable state of repair
- Provide you with monthly income and expenditure statements
- Terminate tenancies and issue breach notices for defaulting tenants
- Take legal action in your name against defaulting tenants
Additional, or “extra”, services can include things like…
- Attending meetings on your behalf
- Lodging insurance claims with your insurer
- Paying your outgoing expenses on your behalf
- Organising professional photography for your property
- Marketing your property (print, digital, online etc)
- Providing administration services to maintain your tenancy
Check your management agreement
A great way to ensure that you are getting the services promised to you and avoid nasty surprises is to check the Management Agreement.
A Management Agreement is a legally binding document signed by you and the agency and outlines the terms and conditions, services to be provided and the fees that you will pay for the itemised services.
Watch for hidden costs
Sometimes paying less in management fees will cost you more in the long run! Some agencies will charge a lower base management fee but charge a higher cost in addition to the base management fee to cover the additional services.