Twelve Different ‘Add-On’ Fees To Consider
(7 minutes)
Property managers often overlook key opportunities to charge for valuable services.
This article highlights 12 additional fees that you can implement to ensure you’re fairly compensated for the work you do.
From monthly administration fees and tribunal attendance charges to renovation fees and rent increase fees, these add-ons can significantly boost your revenue.
Each fee addresses specific tasks outside the usual scope of property management and helps you get paid for the extra work.
Learn how to implement these fees confidently and ensure you’re never leaving money on the table. Discover more in PM Fee Scripts Secrets today!
I want to run through 12 general fees that you, as a property manager or agency owner can charge. Now, these aren't your typical leasing, management, inspection, or marketing fees—we've covered those in other videos.
Instead, we’ll focus on a range of additional fees that are just as important. These insights come directly from my book, PM Fee Scripts Secrets, where we detail 34 fees and fee packages that have been successfully implemented across Australia, New Zealand, and the United States.
Remember, the book is free, and all you have to do is cover shipping. Go to StopDiscountingFees.com or IGTCentral.com to grab your copy.
Let’s dive into these general fees:
1. Monthly Administration Fee
This is one of the most common fees. It covers petty expenses like phone call charges, admin costs, and more.
Recently, we’ve seen this fee evolve into calling it a technology/subscription fee, reflecting the added value of tech solutions.
You might charge anywhere from $5 to $15 a month, but I’ve seen some agents charge up to $33 a month. If you believe in the value you provide, you can justify this easily.
- Standard Marketing Fee This fee covers the costs of listing properties on portals. In Australia, you’re likely familiar with the two major portals that charge fees. New Zealand has its own marketing portal costs as well. Make sure you’re covering those costs, and if you haven’t updated your fee recently, ensure you’re adjusting it, as portal charges tend to increase on a regular basis.
Don’t forget to factor in any additional marketing efforts, such as Facebook or LinkedIn campaigns. Always check your local legislation to ensure you can on-charge these costs. - Professional Photos If you’re taking professional photos for listings, you should be charging a fee to cover those costs. It’s a straightforward service, but make sure it’s reflected in your fee structure.
- Video Walkthrough Fee Offering video walkthroughs is becoming increasingly common. If you’re walking through the property with a camera or phone, narrating as you go, that takes time—editing and uploading included. You should be charging for this service, and the suggested fees are detailed in the book.
- Virtual Tour Fee Using high-tech tools like Matterport or 360-degree cameras to create virtual tours can be time-consuming and require expensive equipment. This is another service where you should be charging a fee for the value you provide.
2. Annual Statement Fee
This is a value-added service where you provide owners with a single annual summary of all their monthly statements, saving them hundreds of dollars in accountant fees.
If the alternative cost to the owner is $500 to $600, why would you charge nothing for this service? A fee of $99 is still fantastic value for the client, and you deserve to be compensated for your effort.This is a value-added service where you provide owners with a single annual summary of all their monthly statements, saving them hundreds of dollars in accountant fees.
3. Annual Technology Fee
This fee covers the same services as the monthly administration fee, but is charged annually. We’ve seen agents charge up to $120 per year for this.
It’s a great way to recover the cost of providing tech solutions without adding a monthly bill for your clients.
4. Tribunal or Court Attendance Fee
This covers your time and effort when attending tribunal or court, including file preparation, drive time, and the hours spent waiting.
I’ve seen agents charge up to $997 for this, even if they rarely attend tribunal. It’s essential to set a fixed fee—$450 to $550 is common.
This fee also helps discourage owners from pushing for tribunal attendance over trivial matters.
5. Insurance Claim Processing Fee
Processing insurance claims can be time-consuming, so why aren’t you charging for it? You can easily charge up to $450 for this service.
Owners expect you to do the work, so make sure you’re getting paid for it.
6. Payment Disbursement Fee
This fee applies when you’re paying bills on behalf of the owner, such as water or council rates.
Typically, agents charge $2 to $4 per disbursement. It’s a small but necessary charge for managing these payments.
7. Special Payment Fee
If an owner requests a payment outside your normal payment cycle, you can charge a special payment fee. It’s an added service, and you should be compensated for the extra work.
8. Water Collection Fee
In most regions, you’re responsible for collecting water payments from tenants, unlike in Victoria where tenants pay water costs directly to the supplier.
If you’re managing this for your clients, you should either include it in your management fee or charge a separate water collection fee. This ensures you’re being paid for the extra work.
9. Repairs and Maintenance Fee
When I mention this, many agents immediately ask, “But what’s the management fee for?” The answer is simple: Whatever you say that it is!
Many agents successfully charge a repairs and maintenance fee, even in markets where their rivals don’t. Typically, this is charged as a percentage of the invoice—often matching or exceeding the management fee rate (e.g., 8% or 10%).
10. Renovation Fee
When you’re managing a renovation project, it’s an entirely different ballgame from standard maintenance. Many agents charge a higher fee for renovation work—often 10% of the total cost.
You can either have a separate renovation fee or charge your repairs and maintenance fee for projects over a certain amount.
11. Rent Increase Fee
If you increase the rent by $20 a week, that’s $1,040 extra in the owner’s pocket each year. Why not charge a small percentage—say 10%—of that increase as a fee for your service?
You’re helping the owner earn more, so it’s reasonable to get compensated for your work in managing the rent increase.
12. Outside of Normal Duties Fee
This fee covers anything that falls outside your regular duties, such as attending the property for a bank valuation, meeting a sales agent, or dealing with a loss adjuster.
It’s entirely discretionary, but it’s there to prevent owners from asking for trivial, time-consuming tasks without offering compensation.
When these requests come in, you can say, “Yes, Mr. Smith, we can do that. This will be covered under our ‘Outside of Normal Duties’ fee.”
Get compensated for what you do!
These 12 fees are just a sample of the many ways you can ensure you’re being fairly compensated for the work you do. If you’re not charging these, you’re leaving money on the table.
Remember, these fees and many more are covered in detail in PM Fee Scripts Secrets, where we also provide responses to over 50 common fee objections.
The book is free—we’ve already covered the printing costs. Just pay for shipping, and it’s yours. Go to IGTCentral.com and get your copy today.
Take care!
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