Why You Should Be Charging a Routine Inspection Fee (6 minutes)
Charging for routine inspections is not only fair but essential for property managers, yet many hesitate, thinking owners won’t pay.
This article explains why routine inspections are time-consuming and valuable, and how owners will willingly cover this fee—just like they pay plumbers or electricians.
The real issue isn’t the market; it’s the mindset that routine inspections should be part of the management fee.
Learn how to confidently charge for these services and get compensated for your time.
Discover more strategies in Win Your Worth Secrets and PM Fee Scripts Secrets to boost your revenue today!
Let’s address one of the most common points of resistance I hear from agents—especially those on the East Coast of Australia or in New Zealand—when I suggest they should be charging for routine inspections.
The response I usually get is, "But Darren, what’s the management fee for?"
Here’s the thing: owners will pay for a routine inspection, and thinking they won’t is simply unreasonable. The real issue isn’t the market—it’s our mindset. Let me explain why.
Routine Inspections Are Time-Consuming
Let’s face it, inspections are a time-heavy process. They take a lot of effort, and if something requires that much time, it's fair to charge for it.
Now, think about why you charge a leasing fee. If I asked you, "Why isn’t leasing included in the management fee?" you’d say, "Well, Darren, we have to drive to the property, show it multiple times, process applications, do the ingoing inspection, and handle all the paperwork."
Exactly—it’s all about time. The leasing process is time-intensive, often taking 8 to 12 hours per letting. That’s why you charge a leasing fee.
And the same applies to routine inspections.
- 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.
The Real-Time Commitment of a Routine Inspection
Most agents I ask in seminars tell me they think a routine inspection takes 15 to 20 minutes. But what about booking time, driving to the property, completing the inspection, handling additional tasks that come up, and preparing the report for the owner?
In reality, it’s at least an hour, sometimes longer. Now, here’s the real question: What are you worth per hour?
Let's Break It Down:
• If you hire a cleaner, what are they charging you? Around $40 or $50 per hour.
• A gardener? About the same.
• A handyman? $60 or $70.
• An electrician or plumber? $100 to $110 per hour.
• Need a computer technician to fix your office? That’ll be $150 to $200 per hour.
• Your accountant? $300 to $400 per hour.
• A lawyer? $500 to $600 an hour or more.
Now, considering you’re managing potentially millions of dollars’ worth of properties, are you worth less per hour than a cleaner or plumber? Absolutely not.
Why $99 for a Routine Inspection is Too Cheap
When I suggest agents charge $99 for a routine inspection, they often think it’s too expensive. But in reality, it’s not. In fact, it’s still too cheap. Here’s why:
A plumber can come out, change a washer in 15 minutes, and hand you a bill for $140. And you’ll pay it without hesitation because that’s the going rate for a plumber. When you give that bill to the property owner, they’ll accept it just as easily because that’s what a plumber charges.
So, why are we so convinced that owners won’t pay for a routine inspection? They will.
Owners Focus on the Management Fee—Not the Extras
Here’s where you need to understand the law of the main game. Owners are generally only fixated on one thing—the management fee.
They’re not worried about smaller, additional fees like routine inspection charges. This is why you can successfully introduce and charge a routine inspection fee even when none of your competitors are doing it. It doesn’t matter to owners.
My Challenge to You: Just Do It!
Here’s my challenge: Just start charging for routine inspections. When you introduce the fee, do it confidently.
Don’t let doubt show on your face, and don’t hesitate—just act like it’s something you’ve always done.
When you say, "Our routine inspection fee is $X," say it with certainty, and you’ll see owners won’t push back. They understand the value and won’t make a fuss about these fees.
Stop letting the mindset of "But Darren, what’s the management fee for?" hold you back. That’s just a barrier in your thinking, not the owner’s.
How to Get Owners on Board
Of course, you’ll need to know how to justify this fee, and that’s where we come in. In my books Win Your Worth Secrets and PM Fee Scripts Secrets, I cover everything you need to know about implementing and justifying fees like these. Both books are available now, and they’re free—you just need to cover the shipping costs.
Head over to igtcentral.com to get your copies and start charging what you’re worth.
Take care!
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