A newly formed property management company based in Perth has established a flat rate model, charging its clients a set fee of $355 a month including GST to manage their properties.
C-Vue Property Managers managing director Honor Borg told Elite Agent her company would be focusing on properties that were let out for $500 or more per week to help investors save a small fortune in property management fees, annually.
“For those in the lower range (of rental fees of below $500 per week), this flat fee charge will not work for them,” Borg told Elite Agent in a telephone interview.
At present, landlords in Western Australia were charged a letting fee, advertising, ingoing and outgoing property reports, routine inspections, professional photography, lease renewal and finally a monthly management which can cost thousands of dollars each year.
“Transparency is the key to our new structure.
“In the past, if you were receiving $500 per week in rent, you would be charged $50 per week in management fees.
“If you were receiving $1000 per week on another property, your management costs would be $100 per week.
“But at C-Vue we know there isn’t double amount of work to manage the $1000 per week property, so why charge double the amount to landlords?
“We firmly believe that all landlords should be charged one flat fee, C-Simple,” Borg said.
Borg said she expects this new model to ruffle some feathers and create controversy in the Perth property scene but plans to go all out promoting it.
“Another advantage of C-Simple is that when the market rents start to rise again, the landlords will receive the full increase into their back pocket.
“With the traditional property management fee model, the agency would also take a cut.
“We know that C-Simple is going to make landlords happy and we are so thrilled to be able to offer this new structure to them.”