Unlocking the Secrets of Property Management Fees

Investing in real estate can be a profitable venture, promising returns that often outweigh the initial investment. However, managing a property is no small feat; it demands time, expertise, and an understanding of the market dynamics.

As a landlord, you’ll need to find and qualify tenants, conduct repairs, and understand all the legal requirements associated with leasing properties. You also need to manage tenant issues, comply with property safety standards, protect tenant rights, and negotiate lease agreements. For some landlords, the day-to-day management of their properties can become overwhelming, especially when balancing tenant needs, maintenance issues, and regulatory compliance.

This is where a property manager becomes indispensable, as we act as the intermediary between the landlord and tenants, ensuring a stress-free tenancy. Our responsibilities include finding and vetting tenants, collecting rent, handling maintenance issues, and even navigating the complex legal landscape of property laws. 

Do You Need a Property Manager?

There are many reasons why investors decide to work with a property manager, but it generally comes down to the following:

• Wanting an easier and more effective way to handle their rental properties.
• Wanting to maximise their investment and minimise their risk.

At Melcorp Real Estate, we are well-versed in the Melbourne real estate and property management markets. We offer valuable experience and expertise essential for enhancing your rental income and maintaining the value of your investment.

We take the day-to-day tasks and tenant issues off your hands, allowing you to step away and relax, knowing your properties are in good hands and everything is handled professionally.

Understanding the Fees

If you’re considering hiring a property management firm to manage your investments, you must get value for money. This means you need a clear idea of these fees and how they relate to your investment properties. So, here’s a brief overview of how we manage rental properties for our clients.

Advertising the Property for Rent

This encompasses a range of marketing efforts to make the property appealing to potential tenants. It includes listings on various online platforms, placement of signboards, and engagement of professional services such as photographers, copywriters and staging firms to showcase the property in the best light possible.

Managing Rental Property Viewings and Screening Tenants

We arrange, conduct and manage all open houses or private viewings. Our team follows up with all potential tenants and performs a thorough screening, which includes reference checks and reviews of rental history to ensure prospective tenants are reliable. Once the screening is complete, a list of qualified potential tenants is presented to our client, who will make the final decision.

Condition Report Process and Tenancy Agreement Management

A detailed condition report is prepared at the start of a new tenancy, which is vital for managing expectations when the tenancy ends. We also handle the tenancy agreement signing process, field any questions, and manage the property’s financial accounts, including issuing regular financial reports to our client.

Routine Inspections, Maintenance, and Repairs

Regular inspections are conducted to ensure the property is well-maintained and complies with the lease terms. We also coordinate maintenance and repair work, negotiating with tradespeople on behalf of our client to maintain the property’s condition.

Additional Responsibilities

These may include attending to late or unpaid rent, managing rental transfers and renewals, reviewing and adjusting rent based on market conditions, facilitating safety checks (such as for gas, electrical, and smoke detectors), and liaising with building management on broader issues. In cases of disputes, we may also represent our client in hearings, adding another layer of value to our services.

In essence, property management fees cover a broad spectrum of activities and responsibilities. These are aimed at maintaining and enhancing the value of your investment property while ensuring smooth operation and compliance with legal requirements.