Fees
Money Matters
Simplified Fee Structure with Us
At UrbanNest Property Mangement, we believe in transparency and simplicity when it comes to property management costs. Our fee structure includes:
$45 per property inspection
6% monthly management fee (no hidden charges)
We also charge a letting fee for finding new tenants for your rental property. We have two fee structure choices:
An increased management fee percentage to spread the letting fee cost over the tenancy OR
A one-off charge of one week’s rent
*Fees exclude GST
Understanding Property Management Costs
When it comes to managing your rental property, a professional property management company can be a lifesaver. Their knowledge of the local market and experience in handling various property-related challenges can transform complex situations into manageable tasks, allowing you to focus on other priorities.
However, as with any service, property management comes at a cost.
Understanding property management fees is essential before you sign any agreements. Different companies have different pricing models, and being informed will help you make the best choice for your property.
Types of Property Management Fees
Property management costs can vary greatly depending on the service provider. While each company has its own fee structure, there are five main types of fees you should expect:
1. Initial Setup Fee
Some property management companies charge a one-time fee to set up your property with their service. This fee may include an initial inspection of the property, reviewing its condition, and informing tenants of the change in management. Not all companies charge this fee, so be sure to ask before you sign on.
2. Tenant Placement or Leasing Fee
This fee, also known as the letting fee, is charged when a property management company secures new tenants. It covers tasks like marketing the property, reviewing tenancy applications, conducting background checks, and facilitating the lease agreement. It’s a common charge when leasing out a property to new tenants.
3. Monthly Management Fee
Most property management companies charge a monthly fee to oversee the ongoing management of your property. This fee can either be a fixed amount or a percentage of the rental income.
Flat Fee: A fixed monthly rate that covers all services.
Percentage of Rent: Typically ranges from 6-10% of the monthly rent. For example, if the monthly rent is $2,000 and the management fee is 10%, you’ll pay $200 per month.
It’s important to note that the monthly management fee typically does not cover the initial setup fee or the cost of tenant placement, which may be charged separately.
4. Maintenance Fees
Property managers may charge additional fees for maintenance and upkeep of the property. This can include routine services such as lawn care, cleaning, or minor repairs. For more extensive repairs, you may need to pay for tradespeople to address issues like plumbing or electrical work. Be sure to ask if these fees are included in the monthly management charge or if they’re extra.
5. Additional Property Management Fees
Some property management companies may charge additional fees for services like tenant placement, eviction, or contract termination. These fees can vary depending on the complexity of the task. Common examples include:
Tenant Placement or Eviction Fees: Charges for advertising, screening tenants, or handling tenant evictions.
Contract Termination Fees: A fee charged if you end your agreement with the property manager before the contract period is complete.