Cost Vs Value - The Secret To Better Value!
Choosing a new Property Manager to manage your biggest investment is never an easy decision, and there are certainly a lot of factors that come into play. Whilst everyone wants to select the best Property Manager, it can be hard to distinguish between the different services, and more often than not price is a big consideration. This makes perfect sense; it is after all an investment.
When you consider all of the tasks that are involved in quality property management, the cost factor is quite an insignificant consideration. Most agencies within Melbourne will offer a fee structure that is somewhere between 5.5% and 8.8% of rent collected, with additional infrequent and minor fees for leasing and sundry activities.
More often than ever before, we are seeing agencies within the marketplace, who are offering cut price services that almost seem too good to be true – and it’s becaause they are. As a knowledgeable investor, it is important to consider the overall return on your property and the benefits that a higher quality agent might offer – this will generally outweigh the minor difference in cost.
The cheapest agent is the agent who will put the most money in your pocket, not the agent who charges the least. Maximising revenue for our owners is paramount managing an investment property, and agencies who charge a higher fee often earn so much more for their clients than they cost. Ultimately, if an agency is offering much lower fees, they need to cut their service levels to accommodate that.
Consider this, a rental property at $400 per week will cost you $4.40 extra per week in management fees if you pay 6.6% instead of 5.5%. That’s less than a cup of coffee. A tax deductable cup of coffee. Of course, a great agency will get you extra rent, but additionally, by engaging a quality Property Manager, they should increase your revenue by educating their clients on the importance of:
- Negative Gearing
- Tax Depreciation
- Increasing Rental Income
- Property Compliance
- Maintenance Plans
- Rent Reviews & Lease Renewals
- Refinancing
- Insurance Reviews
- Business Partnerships
Ultimately, this income will far outweigh the cost of the cup of coffee.
At Visser Estate Agents, we consider ourselves to offer a competitive fee structure, but also focus on the return that our clients receive on their investment properties. We assist by offering quality service that educates our clients, minimises risk and increases their income to assist in the overall value growth of their portfolio. Through years of experience, we have come to understand that this is of far more value to our clientele.
