What is the ‘average’ commission?
Management fee commissions can vary dramatically from agency to agency and region to region. In Metropolitan Melbourne, it is likely that agencies with established systems, marketing and leasing practices, pro-active management and quality outcomes may charge fees that are higher than agencies with lower quality practices. Typically, a variation of 1.00% in management fee equates to about $250 per annum in overall cost differences to a landlord over the course of a year. Higher quality agencies like MRE ensure that clients receive proportionately more value for fees than is typical of a low-quality, low-fee agency.
How do I calculate the dollar amount?
Taking the management fee percentage and multiplying by the annual rental income will provide you the approximate dollar amount. For example 7.00% management fee x $400 per week rent (x 52 weeks) = $1,456 per annum.