Have you just bought your first Investment Property or are you thinking of buying one? I had a vague idea how much it was going to cost to have it managed by a Property Manager but i had not thought about all the costs involved. I had only thought of the monthly fee to the agent and not the setting up costs of the tenancy.
The following costs are what you can expect to pay to start a new tenancy.
The letting fee which is two weeks rent plus GST,based on rent at 435 dollars a week will be 957 dollars.
A Property Condition report will cost 150 dollars plus GST,making it 155 dollars.
A Tenancy Data Base check 20 dollars plus GST,making it 22 dollars per person. For two people on the lease 44 dollars.
The agents fee which will be around 8.5% of the weekly rent plus GSE taking it to 9.35% so that will be around 160 dollars a month.
Advertising cost,basic Internet Profile 55 dollars .
Total cost on a weekly rent of 435 dollars will be 1371 dollars.
If you have a six month Tenancy and the Tennents do not want to renew the lease then
you will have these start up costs again with the new tennants.
You need to budget for these costs and save some money for the start of a new Tenancy