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What Brisbane Property Management Agencies are Doing to Increase Fees.

Being the Principal of a property management agency I get a lot of emails or spam from property experts and trainers trying to sell me their services or offering ways to get more business.

A lot of the emails give away tips on different ways to increase property management fees to maximise our income. So the other night I added my email address and received the property management tips on increasing fees.

Some of the main tips were about just adding a small fee every year like postage and petties of $5.5 or end of year fee of $27. The bigger ones included charging 1 weeks rent for a lease renewal  and $200 for advertising fees.

The point these tips endeavour to make is that if a property management agency increases fees every year to the maximum of $10 extra per month, per property, then the agency stands to earn enough additional revenue that it won’t matter if the fees cause some owners to take their business elsewhere.

For example, the average Brisbane property management agency  manages approximately 300 properties. Increasing fees by $10 per month will earn the agency an additional $36,000 in one year.

They claim that if you send this increase in fees out to your 300 investors, the majority will not respond and you may lose 1 or 2 managements from unhappy owners.

The response to losing these managements is that if they are only worth $1500 each, then the increase is justified because the agency is still ahead. Their perception is that if an owner complains, then the agency doesn’t need the business anyway.

It’s a devious mind set our industry has and I for one hope property investors respond by moving to a property management agency that is ethical and transparent with the service and fees they charge. It is industry experts such as this that give property management a poor reputation.

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