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.