Over the past decade, the Australian property management market has experienced huge growth, putting us well ahead of the rest of the world when it comes to expert property management.
Australians love bricks and mortar, and it turns out we also value a service that can protect our hard-earned property investments. It’s no surprise then that Australia is proving itself to be a world leader in property management. If we take a look at how other countries run their property management systems, it becomes clear that we are indeed the lucky country.
Sometimes property owners have to go to court to protect their rights as landlords. In some American states, the property manager is not allowed to attend court to take action against rental defaults or claim a tenant’s bond. They can prepare a file for the property owner, however the owner must seek representation from a solicitor in order to present the case in court.
Australian property owners, on the other hand, can call on an experienced property manager to represent them at the tenancy tribunal. This kind of ongoing legal support is a huge advantage for property owners who may at some point need to navigate complex tenancy laws.
Many property management companies in the United States still only distribute rental payments to owners once a month. Australian landlords can take comfort in the fact that their property managers offer a more flexible payment system. Monthly, fortnightly or weekly payments can be arranged, as requested by the owner.
Another regular occurrence in the United States system is the requirement that all tenants pay their rent on a common due date. Conversely, Australian landlords and their property managers can define weekly, fortnightly or monthly tenant payment arrangements, all of which is set out in the lease.
Property management fees
Fees do vary from country to country. In the United Kingdom, ongoing management fees are around 10 per cent of rental income, plus VAT (value added tax). In the United States, fees come in between 8 and 10 per cent.
Australian property management fees vary between states, but they generally offer significantly more value to property owners. For example, the average fee in Victoria costs between 5 and 8.8 per cent of rental return.
Interestingly, many of the property management agencies in the United States own the maintenance business that undertakes repairs on the properties. The risk with this system is inflated and sometimes unnecessary maintenance costs.
In contrast, Australian property managers handle maintenance and repairs with skilled, licensed tradespeople, meaning costs remain competitive and transparent. Most importantly, Australian landlords can put their trust in a property manager to maintain and protect their investment.
Owning property is one of the biggest investments you can make. Ensure you trust its management to the experts. Contact K.G. Hurst today to speak to a rental property specialist.