Why the fixed fee?

One of the most common questions we receive at Managed Property is Why the fixed fee?’

This is understandable – our fee structure is different and we are programmed to think that different is bad.

But different can be good, different can save you money and sometimes different eventually becomes normal.

So, why the fixed fee?

Simple, we do the same tasks and spend the same amount of time managing a property whether it be $1000 a week or $10 a week.

Once a tenant is in, the rent gets paid, inspections get done, maintenance is organised and the usual day to day issues come and go.  We know how much it costs to provide this service, we know how many properties each of our property managers can handle whilst providing the service level we want, we have certainty in our cost base.  With this in mind – we can price our service with certainty.

Remember back a few years, we used to not know how much our phone bill was going to be as it was based on phone calls?  Now every person I know is on a fixed plan.

As soon as interest rates go up everyone automatically fixes their home loan – we like to know how much our repayment are going to be.

We do not see fixing management fees as a big deal, we think it makes sense.  We think it is transparent and reflects the job that we do each and every day.

SOOOOO – why do we not fix let fees you ask?

They are fixed – at one weeks rent plus GST.

The task is not fixed, it could take us a day or a month to lease a property, the rent is not determined until a lease is signed, the fee paid reflects this uncertainty of outcome, similar to the uncertainty of outcome of how long it takes to sell a house and how much it will sell for.

So if you are like me and you like to know how much money you are going to spend each year on phone, investments, loans, fixing your management fees is not a far fetched idea.

You are not going to miss out on an essential service, you are just going to know regardless of your rent increasing or decreasing how much you are going to be paying for the convenience of having a professional look after your property.

You know how much your rent is, you can fix your home loan repayments, Why not get a fixed price on property management?

Everyone loves certainty.

We buy property and believe with certainty that it is going to go up in value, we believe with certainty that our property will be attractive to tenants and will be rented at the rate that we want.

Having constants in our life and in our property investment strategy is very important.

At Managed Property, we often get questions from other agents, investors, clients – how come your management fees are fixed?

The simple reason – we know what our costs are, we know how much we need to spend to provide our service, we know the margin we need to make to ensure a sustainable successful business so we can with certainty put a price on our product.

Our product is a fixed service – it should have a fixed price.

If you rent goes up or down, you still expect the same amount of inspections, email and management from your property manager!

Don’t you?

You would not (and should not) put up with a manager saying, ‘due to the fact we get a % of your rent and your rent is going down, I am not going to do your next general inspection’.

Having a fixed cost allows you to plan ahead, work out what your yield is and make decisions about your property investment with facts.

Fixing how much each week you pay your manager to look after your property is a good way to start.

managedproperty.com.au 07 3139 1701

Rents are down, vacancy is up, WHAT IS GOING ON!

2014 was a year of change in the inner city Brisbane rental market.

A quick snapshot :

Rents: Down

Vacancy: Up

Council Rates: Always up

Body Corporate: Always up

Maintenance bills: Continual

Interest Rates: Better than ever


Rents are down as there is a lot on the market to choose from, developers offer rental guarantees to purchasers buying at seminars focussed on yields, flood the market with sub lease stock and the broader market suffers.

Rents are down as wages are flat and life is expensive.

Vacancy is up due to supply increasing,

Council rates and body corporate costs are always up and interest rates is a different discussion altogether.

I see so many peoples investment strategy based on yield rather than property value as the rental return enables us to fund the property purchase.

There is no point purchasing based purely on yields, rentals are not fixed, tenants are not likely to stay for life and buying purely to either solve a tax problem or achieve a set yield can distract an investor from the fundamental questions we should ask such as:

1: Why am I buying a property?

2: No seriously, why am I doing this?

3: Can I afford it?

4: Am I being told to buy or do I really want to do this?

5: Why does this property work for me?

6: Why would someone buy this from me when I am on the other side of the transaction?

Being clear about your investment strategy and looking at all elements not just yield is always a good idea.

Property is a long term play, it is about owning a location, not about reducing tax, think about what and why you are buying.