The property market in Melbourne is coming off the back of some amazing growth over the course of the year, with median house price now at $638,000, and median unit prices at $434,000.
South east of Victoria‘s capital city, the metropolitan suburb, Toorak, known for the shopping destination of Chapel Street, has shown a strong performance, with $23 million as the highest price paid for a property in the last 12 months. North west of the city, the rural, creek-lined suburb of Sunbury has seen a slight fall in unit prices, indicating a possibility for higher property management fees in the area.
What you need to know about property management fees in Melbourne
A property manager will normally take 1 – 4 weeks rent as an initial fee when managing your property, from then on, they may charge 5 – 10 % of the monthly rent, but this is dependent on several factors. Property managers generally take a smaller fee from their managed property in metropolitan Melbourne where house prices are higher, like in the northern suburb of Carlton, where the bubbling nightlife of Lygon Street boosts property prices. In rural suburbs, like serene Warrandyte in the north, there will be higher property management fees, because of their lower property values.
What to consider when finding the right property manager for your property
- Never choose a property manager by the fee alone; look at the other services they may offer. For example, a rental property in inner city Richmond, next to the MCG, may benefit more from a solid marketing strategy.
- Property management fees vary for homes in rural areas, so compare agents to find the average cost in your area.
- Higher property prices and greater competition amongst property managers exists in metropolitan Melbourne, so property management fees tend to be lower there.
Want to find out what property managers are charging in Melbourne?
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