Understanding the difference between letting fees and lease renewal fees is important for any property owner working with a property manager in Brisbane. These fees are common in the industry, but they serve different purposes and apply at different stages of a tenancy.
Knowing what each fee includes and when it applies can help you manage your investment more effectively.
What is a Letting Fee?
A letting fee is charged when a property manager finds a new tenant for your rental property. It covers tthe work involved in running inspections, assessing applications and setting up the tenancy.
Letting fees usually include:
- Organising and attending inspections
- Screening tenants and checking references
- Preparing the tenancy agreement
- Lodging the bond with the Residential Tenancies Authority (RTA)
- Completing the Entry Condition Report with supporting photos
In Brisbane, most letting fees are equal to one week’s rent plus GST. Some agencies may charge slightly more or less depending on the level of service offered.
What is a Lease Renewal Fee?
A lease renewal fee applies when an existing tenant agrees to sign a new fixed-term lease. Unlike a letting fee, it does not involve finding a new tenant. Instead, it covers the time and work involved in reviewing the tenancy and preparing updated documentation.
This usually includes:
- Reviewing current rent against market rates
- Negotiating new lease terms with the tenant
- Preparing the updated lease agreement
- Coordinating the signing process and record-keeping
Lease renewal fees are often lower than letting fees. In Brisbane, it is common for property managers to charge around half a week’s rent plus GST.
Why Do These Fees Matter?
Understanding these fees helps you plan your property expenses and assess the value of your property manager. Retaining a good tenant can be more cost-effective than starting fresh with a new one. A lease renewal fee may help you avoid vacancy periods and advertising costs, while keeping rental income consistent.
Are These Fees Regulated in Queensland?
Yes. Property management fees in Queensland are governed by the Property Occupations Regulation 2014. Fees must be clearly stated in your management agreement. Agencies are required to disclose all charges up front, including letting and lease renewal fees.
It’s a good idea to check your agreement and make sure the fees align with the level of service you are receiving.
Want Clarity Around Your Fees?
At LOYLE, we offer straightforward, competitive pricing and full transparency. If you’re unsure about the fees you’re currently paying or are thinking of switching agencies, we’re happy to review your situation and offer advice.
Request a rental appraisal or contact our team today on 0405 602 619
