Disclaimer: This article contains general information only. It does not consider your personal circumstances and is not personal advice. Financial advice is only provided by authorised representatives of Lifespan Financial Planning Pty Ltd (AFSL 229892). Credit assistance is only provided by FAA Group under its Australian Credit Licence (ACL 388789). Past performance does not indicate future returns.
A rental property is a significant asset for many Australians so it's useful to understand how they're managed. The right property management team is focused on your interests. As a landlord, it's reasonable to have certain expectations of your Sunshine Coast property manager. Exceptional service includes:
- Local property market knowledge.
- Efficient tenant support.
- Streamlined technology solutions.
- Clear and prompt communication.
- And much more.
What can you expect from a property manager, exactly? And how much are they going to cost?
This information is general in nature and does not constitute financial or credit advice. For personalised advice, please contact an authorised representative of Lifespan Financial Planning Pty Ltd (AFSL 229892) for financial matters, or FAA Group under its Australian Credit Licence for credit assistance.
Understanding Sunshine Coast property management services
Once a property owner decides to get into the rental market, they have to consider whether they're going to hire a property management firm or attempt self-management. You might think, "Why waste money on a property manager? It seems easy enough." Landlords tend to quickly realise this isn't true once they realise they're taking on responsibilities, such as:
This is anything but stress-free. But you're saving money, so it's a success, right? Well, details like poor tenant screening may lead to financial loss. Your time is valuable. The hours you spend attending to your property are taken away from other activities. Without relevant experience, it may take you far longer to do certain tasks that a professional property manager could complete faster.
Reliable property managers on the Sunshine Coast can deliver the following services.
Preparing the property for market
A property must be prepared before advertising it for rent, including:
- Performing a rental appraisal based on comparable listings in the area.
- Organising professional photographs.
- Crafting online listings.
Thorough tenant screening
Human beings can be unpredictable. That's why tenant screening is essential. Successful screening is based on proven criteria that are applied consistently. Here's what it typically looks like:
- Verifying identity.
- Confirming employment and income.
- Researching rental history.
- Calling references to check their reliability.
- Checking databases like Tenancy Information Centre Australasia (TICA).
Tenant applications may contain inaccurate or incomplete information. A good property manager can deal with this by having a well-structured screening process in place. Screening must comply with privacy and anti-discrimination laws.
Entry condition reports and bond lodgement
An entry condition report protects the landlord and tenant from incorrect claims. The property manager may complete the report and sign it. A copy is provided to the tenant by the date of occupancy. The report should include extensive photo or video evidence.
The tenant pays a rental bond for four weeks' rent. The property manager lodges this with the Residential Tenancies Authority within ten days. The tenant will then be given the keys to the property.
Inspections and ongoing management
The property manager has various duties while the rental property is occupied. These include:
- Rent collection.
- Communicating with tenants.
- Handling inquiries.
Routine inspections may be conducted up to every three months. A different arrangement may be included in the tenancy agreement. The tenant receives an entry notice 7 days prior to the inspection date. Inspections cover areas like:
- The general cleanliness of interiors.
- The condition of fixtures and surfaces.
- The condition of outdoor areas, like pools.
- Identification of necessary maintenance or repairs.
- Lease agreement compliance for issues like unauthorised pets or indoor smoking.
Organising maintenance
Organising maintenance is one of the most laborious responsibilities a landlord can face. Spacious locations with outdoor areas to explore can take a lot to upkeep. A professional property manager typically partners with licensed tradespeople they know they can trust. They make sure that maintenance fits with safety standards.
Managing arrears and disputes
The law wants to make the process fair for tenants and landlords. This means providing reasonable notice for the issue to be resolved. Here are the steps.
Step one: Arrears are identified
Most property managers use an automated payment system to handle rent collection. If a tenant falls behind, the property manager will get an alert. The manager contacts the tenant promptly.
Step two: Friendly reminder
Remember when we said property managers are good communicators? They lead with friendliness. Rent issues could just be a problem with the bank. A friendly reminder could work.
Step three: Formal notice
After a friendly chat, it's time for the formal process. Once the tenant is seven days in arrears, they're sent a notice to remedy breach (Form 11). The tenant generally has seven days to cover the unpaid rent. This will depend on the rental agreement.
Step four: Notice to leave
What if the rent still doesn't arrive? The property manager issues a notice to leave (Form 12). The tenant now has seven days to leave. The tenant could pay the amount owed in that time. They may then seek written permission to remain. The property manager may rescind the notice. But this decision depends on:
- Is this going to happen again?
- How easy will it be to get another tenant?
- Has the tenant been good to deal with, otherwise?
Step five: Dispute resolution
What if the tenant still doesn't leave? The parties generally won't go straight to the Queensland Civil and Administrative Tribunal (QCAT). They usually have to seek dispute resolution through the Residential Tenancies Authority (RTA).
If the parties can come to an agreement through the conciliation process, the RTA will document the agreement.
Step six: Termination order
The RTA will issue a notice of unresolved dispute after failed mediation. This allows the property manager to approach QCAT for a resolution. QCAT may grant a termination order and a warrant of possession (WOP). The warrant permits the police to enter the property and give possession back to the owner.
Ending tenancy
A tenancy can be ended by the property manager through a notice to leave (Form 12). The tenant can end it through a notice of intention to leave (Form 13). Notice must typically be given at least 14 days in advance. The basic steps for ending a tenancy include:
- Review the entry condition report.
- Provide the tenant with a cleaning checklist.
- Organise the return of the keys and other access devices.
- Complete an exit condition report after the tenant has vacated the property.
- Request the bond be refunded by the RTA.
- Get the property ready for relisting.
This process smooths the transition between tenants. Agencies know it's important to get this right. The way your property transitions between tenants may affect how long it stays vacant.
Property management fees and costs on the Sunshine Coast
Fees depend on the services being provided and the property under management. These are the fees you'll likely face.
Management fee
Management fees are generally a percentage of the property's weekly rent. The average for the Sunshine Coast is between 6% and 12%.
Here's an example based on a property that's rented for $760 per week:
- $760 × 6% = $45.60 per week
- $760 × 12% = $91.20 per week
The property's annual management fees would fall between $2,371.20 and $4,742.40.
What affects the management percentage?
The property management agency will consider various factors when setting its fees, including:
- The type of property.
- The age and condition of the property.
- The amount of maintenance likely to be required.
- The location and market demand.
Letting fee
A leasing fee is a one-off cost when the property management agency gets you a new tenant. This fee covers work such as:
- Overseeing open homes.
- Verifying each prospective tenant's applications.
- Drafting lease documents.
- Completing the entry condition report.
The letting fee is usually equal to one to two weeks' rent plus GST.
Advertising fees
Advertising costs includes listing on websites like realestate.com.au and Domain. There's also the cost of:
- A professional photographer.
- Yard signage.
- Social media marketing.
In total, landlords typically pay between $200 and $500 for advertising.
Inspection fees and other costs
Most property management agencies include the cost of inspections in their management fee. However, sometimes they're charged separately. The charge is generally $50 to $100 per inspection.
Other costs may include:
- Preparing for dispute resolution or a tribunal appearance.
- Exit inspections and report preparation.
- Organising significant renovation or insurance claims.
Flat fees versus percentage fees
Some agencies charge a fixed fee. Here's how each method stacks up.
- Percentage-based model. The fee scales with the size of the rent and reflects the involvement required.
- Flat-fee model. A flat fee may be cost-effective for higher-rent locations. The lower the rent, the more expensive the fee will be in relative terms.
Choosing the right property manager for your Sunshine Coast investment
Property management agencies may bring different levels of experience. The Sunshine Coast has major franchise brands and small boutique operators. One starting point is looking at whether they have a valid real estate agent licence, such as FAA Property (licence No. 4220395).
It's useful to know where they're physically located. A locally-based business may provide faster response times. FAA Property is located at:
- Suite 3-7, Level 5, Tower 2
- 55 Plaza Parade
- Maroochydore.
We're in the centre of one of the Sunshine Coast's fastest-developing regions.
Local knowledge
You want your property manager to be knowledgeable about the local market. Understanding trends at the suburb level can give them insight into the dominant tenant profiles and rental demand. For example, here's a breakdown of a few Sunshine Coast suburbs:
- Maroochydore development of the new CBD is attracting young professionals and families.
- Caloundra is popular amongst retirees and lifestyle-oriented tenants.
- Mooloolaba appeals to hospitality employees and other service workers.
- Alexandra Headland is a short walk from the beach, the area appeals to working families.
- Buderim draws in young families looking at school catchments and established neighbourhoods.
- Noosa is a trendy area suits high-income tenants.
Property managers who know the area can:
- Choose tenants based on local demographics.
- Set rent rates that are suitable for the area.
- Marketing strategies to attract tenants.
Communication
One of the key personal traits a property manager should have is strong communication skills. Various queries and tenant concerns may arise at short notice. Prompt response times can make a meaningful difference to effective tenant management. Problems can spiral if you're not on the ball.
It's also crucial to speak to tenants about the landlord's concerns. There are situations that some landlords may not think about. For example, what if the tenant has guests stay for long periods? That may not be a problem. But it helps for the property manager to speak to the tenant about their friend to ensure the tenant is okay with them being on the premises.
A landlord should expect:
- Procedures for emergency after-hours communication.
- Direct contact with the property manager.
- Frequent updates based on the landlord's requirements.
Software integrations
Modern technology has made life easier in so many ways. Property managers can streamline how they deliver services using proper software integrations. Here's what an online platform may do:
- Make rent collection automatic.
- Send arrears notices automatically.
- Generate financial reports and rental income statements.
- Keep tax documents.
- Store repairs and maintenance records.
- Store photographs for condition reports.
Modern online systems can provide many additional features. Proper integrations reduce the risk of delays and errors.
Fee transparency
You may want to look at the fee schedule before signing an agreement. You'll likely get pricing that covers:
- Management fees.
- Letting fees.
- Advertising fees.
Questions to ask property managers
Experience and local knowledge
- How many properties do you currently manage on the Sunshine Coast?
- What's the current rental demand in my area?
- What weekly rent do properties like mine usually get?
Management processes
- How do you screen potential tenants?
- How often do you conduct routine inspections?
- Can I see a sample inspection report?
- How do you handle maintenance requests?
- What if tenants fall behind on rent?
Communication and technology
- How will we communicate and how often?
- Do you provide an owner portal?
- How quickly do you typically respond to owner queries?
Fees
- What's your fee structure?
- What's included in your management fee?
- What's the notice period if I want to end the agreement?
Understanding Rental Yields on Your Sunshine Coast Investment Property
Real Estate Investar shows that rent for Sunshine Coast houses is +7.91% and units are +8.92% since last year. Real Estate Investar is a third-party source.
Third-party data sources show rental price movements vary across property types and locations. Past performance is not a reliable indicator of future results. For advice about investment property returns, speak to an authorised representative of Lifespan Financial Planning Pty Ltd (AFSL 229892). Credit assistance is only provided by FAA Group under its Australian Credit Licence (ACL 388789).
Rent pricing
Rental yields are strongly connected with how the rent is priced. There are a few ways this can go.
- Set the rent high. The higher the rent, the better your yield, right? You can face problems, like:
- Pricing yourself out of the market.
- Disputes with tenants if they complain to QCAT about excessive rates.
- Long vacancy periods that cost you thousands over the course of the year.
- Set the rent low. Lower the rent to ensure you're never without a tenant. While you might reduce your vacancy periods significantly, you're still leaving a lot of money on the table. You may affect what return you get long-term if you set rents that are under the market rate.
Rent pricing depends on:
- The condition of your property.
- The pricing of comparable properties.
- The type of tenant you'll likely be serving.
Property managers may also suggest upgrades.
Disclaimer: This is general information and does not constitute personalised financial advice. Financial advice is only provided by authorised representatives of Lifespan Financial Planning Pty Ltd (AFSL 229892). Credit assistance is only provided by FAA Group under its Australian Credit Licence (ACL 388789).
Tenant retention
A tenant vacating a property creates costs, including:
- Exit inspections and cleaning.
- Relisting and advertising.
- New tenant screening.
Tenant selection and timely communication are factors that can influence tenant retention.
From our clients
Disclaimer: Testimonials are individual experiences and are not a guarantee of outcomes. They do not constitute financial or credit advice.
Kayla & her team have been good since I was applying for properties. I was pregnant & stressed in the middle of a rental crisis & Kayla came through for me & my family. Since renting through FAA Property, the team are professional, easy going & approachable.
- Charlie Foster
Get Professional Property Management Support on the Sunshine Coast
Are you interested in investing in the property market? You may have acquired your first home or apartment. A lot of people find that dealing with tenancy and property self-management isn't as easy as it seems. Professional services may help. But it's important to know what you're going to get and how much it'll cost.
Visit our property management team
FAA Property (licence No. 4220395) provides property management services on the Sunshine Coast. Contact our experienced team on (07) 5327 3469 or enquire on our website. We can discuss how our personalised service can meet your property management needs.
Disclaimer: This article contains general information only. It does not consider your personal circumstances and is not personal advice. Financial advice is only provided by authorised representatives of Lifespan Financial Planning Pty Ltd (AFSL 229892). Credit assistance is only provided by FAA Group under its Australian Credit Licence (ACL 388789). Past performance does not indicate future returns.
Written by
Director & Financial Consultant
Michael has worked in the financial services industry for two decades and has vast experience across multiple areas including Salary Packaging, Mortgage Broking, Investment Properties, Shares, Insurance and Superannuation. Through Michael's extensive Consulting career at FAA, he has specialised in working with State and Local Government employees on their long-term retirement goals. Michael has a young family on the Sunshine Coast and a passion for technology and sport for his kids.
