Important Disclaimer: This article provides general information only about property management services. It does not constitute financial, investment, legal, or credit advice. For financial advice, speak to an authorised representative of Lifespan Financial Planning Pty Ltd (AFSL 229892). For credit assistance, contact FAA Group under its Australian Credit Licence. For legal advice, consult a qualified solicitor.
A rental property is one of the most valuable assets most people will own. The right property management team is focused on your interests. As a landlord, you should have high 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 guide covers key questions landlords and investors commonly ask about property management Sunshine Coast.
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:
- Marketing coordination
- Tenant communication
- Inspections and maintenance
- Legal compliance
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 Sunshine Coast can deliver the following services.
Preparing the property for market
A property must be prepared before advertising it for rent. This stage may involve:
- Performing a rental appraisal based on comparable listings in the area
- Organising professional photographs
- Crafting attractive online listings
Tenant screening
Property managers value predictability. Human beings can be unpredictable, which is why thorough tenant screening is essential. Successful screening is based on proven criteria that are applied consistently. Here are some key elements:
- 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
A thorough 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 covering 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
- Tenant communication
- Responding to inquiries
Routine inspections may be conducted up to every three months, unless otherwise stipulated in the tenancy agreement. The tenant receives an entry notice 7 days prior to the inspection date. Inspections cover areas such as:
- The general cleanliness of interior spaces
- The condition of fixtures and surfaces
- The condition of outdoor areas, if applicable
- Identification of any 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. A professional property manager typically maintains a network of licensed tradespeople and coordinates maintenance in line with safety requirements.
Managing arrears and disputes
The priority is to prevent arrears and disputes. You still need a plan if issues arise.
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
If a friendly chat doesn't help, 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, depending 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? Before approaching the Queensland Civil and Administrative Tribunal (QCAT), the parties must 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) or the tenant 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 checklist covering cleaning expectations
- Organise the return of the keys and other access devices
- Complete an exit condition report after the tenant has vacated the property
- Submit a bond refund request to the RTA
- Prepare the property for relisting
This process ensures a smooth transition between tenants. Agencies know it's important to get this right. Transitioning smoothly between tenants minimises the property's vacancy period.
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 charged as a percentage of the property's weekly rent. The average for the Sunshine Coast is typically 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 charged when the property management agency secures a new tenant. This fee covers work such as:
- Overseeing open homes or private inspections
- 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 can vary widely depending on the type of marketing. These fees can include the price of 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 that may be levied include:
- Preparation for dispute resolution or a tribunal appearance if needed
- Exit inspections and report preparation
- Organising significant renovation or insurance claims
Flat fees versus percentage fees
While most management fees are set as a percentage of the weekly rent, some agencies charge a fixed dollar amount. How does each stack up against your needs?
- 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. The first thing to look at is 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. Popular amongst retirees and lifestyle-oriented tenants
- Mooloolaba. Appeals to hospitality employees and other service workers as a hub of Sunshine Coast nightlife
- Buderim. Draws in young families looking at school catchments and established neighbourhoods
- Noosa. This trendy area suits high-income tenants
This is a simplified overview. However, local knowledge gives a property manager an edge in:
- Selecting the right kind of tenant for the area
- Setting appropriate rent rates
- The best marketing strategy to attract the best 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 are absolutely critical to effective tenant management. Problems can spiral if you're not on the ball. 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
The days of paper-based filing systems are long gone. Modern property management relies on digital systems. If an agency is still keeping client documentation in filing cabinets, you have to wonder about their efficiency. Modern property management agencies use technology to streamline service delivery. Online platforms can:
- Automate rent collection and provide arrears notifications
- Generate financial reports and rental income statements
- Keep documentation for tax time
- Store repairs and maintenance records
- Maintain photographs for condition reports
Modern online systems can provide many additional features beyond these examples. Proper integrations reduce delays and minimise errors.
Fee transparency
It is important to review a full schedule of costs in writing before entering a management agreement. You can expect pricing for:
- Management fees
- Letting fees
- Advertising fees
- Additional charges for tribunal appearances or inspections
Questions to ask when interviewing 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 would you recommend for my property?
Management processes
- How do you screen potential tenants?
- What's your average vacancy period?
- How often do you conduct routine inspections?
- Can I see a sample inspection report?
- How do you handle maintenance requests?
- Do you have preferred tradespeople?
- 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?
- Who handles after-hours emergencies?
Fees
- What's your complete 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. This trend may continue, but past performance doesn't guarantee properties will achieve future outcomes.
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).
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? If only it were that simple. You're going to face several potential problems:
- Pricing yourself out of the market as tenants look elsewhere for accommodation.
- Possible 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. Consistently setting rent below market rates may impact your long-term returns.
Rent pricing isn't a simple calculation. It depends on:
- Your property's condition
- The pricing of comparable properties nearby
- The type of tenant you'll likely be serving
This is general information and does not constitute personalised financial advice. For financial advice specific to your circumstances, speak with an authorised representative of Lifespan Financial Planning Pty Ltd (AFSL 229892). For credit assistance, contact FAA Group under its Australian Credit Licence.
Property managers can also suggest upgrades. Some tenants value properties that are well-maintained and upgraded.
Disclaimer: This is general information. It should not be considered personalised advice. If you require financial advice specific to your circumstances, FAA may refer you to authorised representatives of Lifespan Financial Planning Pty Ltd (AFSL 229892).
Tenant retention
Every time a tenant vacates the premises, a landlord faces additional expenses, 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: These testimonials represent individual experiences and do not constitute financial or credit advice. For financial advice, please speak to an authorised representative of Lifespan Financial Planning Pty Ltd (AFSL 229892). For credit assistance, contact FAA Group under its Australian Credit Licence.
Kayla & her team have been good since I was applying for properties. I was pregnant & stressed in the middle of a rental crisis & Kayla really came through for me & my family. Since renting through FAA Property we have not had one drama, the team are professional, easy going & approachable.
- Charlie Foster
Get Professional Property Management Support on the Sunshine Coast
You've been interested in investing in the property market and have acquired an investment property. You soon discover that property self-management isn't as easy as it seems. FAA Property (licence No. 4220395) provides property management services on the Sunshine Coast.
Contact FAA Property on (07) 5327 3469 or enquire to discuss your property management needs.
This article provides general information only and does not constitute financial or credit advice. For financial advice, please speak to an authorised representative of Lifespan Financial Planning Pty Ltd (AFSL 229892). For credit assistance, contact FAA Group under its Australian Credit Licence. All information is current as at the date of publication and subject to change. Individual circumstances may vary.
Written by
Michael Hehir
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.
