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Fixed Rate v Commission Based Property Management Fees

Fixed Rate v Commission Based Property Management Fees

A property manager is your agent, looking after your important investment. Property managers collect fees for services to keep your property occupied by a reliable tenant and to take the day to day hassle out of being a landlord.

Most property managers charge a commission based fee for this work which is a percentage of the property’s rental price. Some agencies such as Nest offer a fixed fee because they believe property management is a fixed service and that many investors on commission based fees are paying more than they need to.

Fixed Rate Property Management Fees

Certainty

When comparing the different fee structures, it’s clear that one of the key advantages of a fixed fee is that it provides certainty. A flat fee makes it possible for you to plan ahead. If you need to make decisions about your property investment you can, based on accurate figures.

Transparency

Another significant benefit of a fixed fee structure is they are inherently simple, transparent, and easy to understand. With percentage based fee structures, potential fees for property management often include extra costs for their services. Fixed fees are ‘all inclusive’ and cover everything required to professionally manage your property.

Value

A fixed property management rate is great value and makes great sense, especially for higher priced rentals because agencies like Nest recognise there is no correlation between levels of service and fee type. Whether the price of a rental is $500 or $1000 a week, everyone pays the same flat rate for the same professional property management services. Also, a fixed fee structure is laid out in such a way that if you choose to raise your rent, that rise rewards you rather than the property management company.

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Despina Raei

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