Why Good Property Managers Save You More Money Than They Cost
When it comes to owning an investment property, the idea of paying a property management fee can sometimes feel like another bill you’d rather avoid. But the truth is, a good property manager doesn’t just pay for themselves, they can actually make you more money than they cost.
Let’s break it down with some real numbers and show you how the right management can deliver a strong return on investment (ROI).
1. Reduced Vacancies = More Weeks of Rent in Your Pocket
Every week your property sits empty is money you’ll never get back. A good property manager knows how to keep those vacancy periods short with:
· Strategic marketing – professional photos, targeted online listings, and open homes that attract quality tenants quickly.
· Tenant retention – building good relationships with tenants so they’re more likely to renew their lease.
Example:
Let’s say your property rents for $600/week.
· The average landlord managing themselves might have a 4-week gap between tenants.
· A good property manager could reduce that to just 1 week.
That’s 3 extra weeks of rent: 3 x $600 = $1,800 saved.
2. Smarter Rent Reviews = Staying at Market Rate
It’s easy to fall behind on rent increases if you’re not watching the market closely. Good property managers conduct regular rent reviews, backed by comparable market data, so your property keeps earning what it’s worth.
Example:
If your rent is $20/week under market rate, that’s $1,040 a year in lost income.
A property manager who reviews your rent annually could identify that gap and adjust accordingly, and they’ll handle the conversations with tenants professionally to keep things on good terms.
3. Preventative Maintenance = Lower Repair Bills
In property management, early intervention saves hundreds, sometimes thousands.
A good property manager:
· Conducts regular inspections.
· Spots issues before they turn into major repairs.
· Uses trusted, cost-effective tradespeople to get the job done right.
Example:
· A slow-dripping tap left for a year could cause water damage, mould, and a plumber’s bill in the thousands.
· A property manager could have had that fixed in a $120 service call.
Multiply this approach across several small maintenance issues each year, and you could easily save $1,000–$2,000 annually.
4. Screening Tenants = Avoiding Costly Problems
The wrong tenant can cost you far more than a property manager’s fee. Missed rent, property damage, and tribunal costs add up fast.
A good property manager screens tenants thoroughly by:
· Checking rental history.
· Verifying employment and income.
· Reviewing references and conducting background checks.
Example:
Even one month of unpaid rent at $600/week is $2,400 lost, and that’s before any damage or legal costs. Preventing that scenario once covers years of management fees.
5. Legal Compliance = Avoiding Penalties
Rental laws change regularly, and not keeping up can lead to fines or disputes. A good property manager stays on top of:
· Smoke alarm compliance.
· Minimum housing standards.
· Lease agreements and bond lodgements.
Example:
A fine for non-compliance with smoke alarm regulations in QLD can be $774 per offence. Avoiding even one penalty more than covers several months of management fees.
6. The ROI on Professional Management
Let’s put it all together for a $600/week property with a management fee of 8% (+GST).
Annual rent: $600 x 52 weeks = $31,200
Management fee: 8% = $2,496 + GST ($249.60) = $2,745.60 per year
Potential savings/increased income from good management:
· Reduced vacancy: $1,800
· Rent reviews: $1,040
· Preventative maintenance: $1,500
· Avoiding one bad tenant: $2,400
· Avoiding a compliance fine: $774
Total benefit: $7,514
Even if you don’t hit every saving in one year, it’s clear the benefits outweigh the cost. In this example, the property manager’s fee is covered nearly three times over.
7. The Peace of Mind Factor
While numbers tell part of the story, the peace of mind a good property manager brings is priceless.
You have an experienced professional who:
· Protects your investment.
· Maximises your returns.
· Frees up your time for other priorities.
A good property manager is not an expense; they’re an investment in the long-term success and profitability of your property.
When they keep your property tenanted, your rent at market value, your maintenance under control, and your legal compliance watertight, you’ll find they save you far more money than they cost.
At Wings Real Estate, our property management team is committed to delivering that level of service, and those kinds of results, for every client. If you’d like to see exactly how much we can help you save, get in touch today.