Putting Value into Property Management

Property investors, do you ever wish that managing your investment was more profitable and less stressful?
Find out here how that's possible.

Letting fees are affecting your property’s profitability!

1st June 2012

Beware! Who's your Property Manager handing the keys to? Here's why Letting Fees could put your property into the wrong hands...Letting fees are a fee charged by some (but not all) property managers. It’s payable by tenants, and is equivalent to one week’s rent, plus GST.

The problem is that many property investors don’t realise (or don’t care) that their property manager is charging this fee. After all, it’s a fee paid by tenants, so why would it affect them?

Letting fees affect a property’s profitability in numerous ways

There are a number of ways in which letting fees affect the income on an investment property. Here’s an overview – and we’ll be covering each of these topics in more detail over the coming weeks:

1. Loss of income

A letting fee is a financial inducement for property managers to have a high tenant turnover rate, which means that your property could be vacant time and time again. This affects your income – while at the same time the property manager is increasing their income! This is a major conflict of interests. Discover how much letting fees could be affecting your rental income.

2. Loyalty

With the property manager making money from you, the property investor, and from tenants, whose side are they really on? Can you really be sure that they’ll be acting in your best interests at all times?

3. Bargaining

Tenants don’t like paying letting fees, and will often try to negotiate a lower rent instead. So the property manager cashes in, while you lose out. Find out more.

4. Second-tier tenants

Good quality tenants with impeccable references and a solid work history know their value, and will refuse to pay letting fees. So if you’re not getting these good quality tenants, then who is your property being let to?

Experienced property investors know that the tenant application process is like a job application where the best applicant gets the job. However, will the best applicant get the tenancy when the property manager is being paid by the tenant?

Learn more about the relationship between letting fees and tenant quality. 

5. Wear and tear

The combination of letting fees, second-tier tenants, and a higher tenant turnover rate means that your property is likely to suffer a good amount of wear and tear and damage… all because your property manager charges letting fees. Discover how you can avoid the hassle of a high tenant turnover rate.


As you can see, the topic of letting fees opens up a proverbial can of worms on a whole host of issues. Issues that are expensive and stressful to deal with.

By choosing a property manager who doesn’t charge letting fees, most (if not all) of these issues will just go away! It really is that simple.



Read more:

Discover exactly how much you could be out of pocket because your property manager is charging letting fees. Read on →