Policy: Project Management Fees & Charges for Owners, Guests, and Tenants

Purpose:

The purpose of this policy is to establish a clear guideline and understanding for charges associated with Project Management and Labor provided by the agency which is outside the normal scope of Property Management.

Background:

Property Management and Project Management serve distinct functions within the rental industry.

Property Management focuses on normal day-to-day activities and routine operational tasks such as owner and tenant relations, property maintenance, and compliance.

Project Management involves overseeing more complex initiatives that require a broader or more intensive scope of work, requiring dedicated, focussed effort, structured planning and execution, and specialised experience and coordination between multiple parties and trades. Additionally, Project Management requires Senior Staff involvement, oversight and supervision with specialized expertise, involving some strategic decision-making to ensure adherence to industry standards and quality assurance.

Given the complexity and financial scope of these projects, structured management is essential to maintaining efficiency, quality, and fairness.

Objectives:

Clearly define Project Management services it’s associated costs.
Establish consistent and fair fee structures.
Ensure fairness and transparency in project-related charges.
Maintain high service standards and protect owner investments.
To implement a framework that aligns/supports our company values of passion, performance and partnership.

Policy

Project Management charges will apply to any activity where Property Providers’ are engaged to handle or resolve outside of usual Property Management activities, which are more complex require additional resources and that typically exceed $2,500 in total gross charge (including GST), and/or where labour exceeds 4 hours, and/or involve multiple external trades, partners or suppliers.
Charges for Project Management Project management fees will range between 10–15% plus GST of the total gross invoices. The percentage (%) will be determined based on the complexity, number of touchpoints and length of time required to complete the project. The nominated percentage (%) will apply to both invoices that Property Providers pays from the Owner’s ledger, as well as any invoices associated with the project that the owner pays directly.
Property Providers’ reserves the right to charge and owner/guest or tenant for Labour associated with Project Management at the Agency’s Rate Card should actual hard costs of external providers be less than or equal to $2500 incl. GST and the resolution requires an investment of a significant amount of time with a general expectation that the labour involved to deliver the project will exceed 4 hours.

Mechanics:

Project Management fees can only be charged for initiatives that are outside what is generally considered out of scope for regular Property Management. This may include but is not limited to: Major repairs or renovations; Major compliance upgrades (e.g. Getting a pool compliant); emergency interventions requiring specialized oversight; or coordination of styling or furnishing a property for rental; Insurance claims; and provision of financial documentation for auditors, accountants or tax assessment.
Guests and tenants may incur charges for damages requiring project-level intervention depending on the nature of the project:
- Owner/Investor Charges: Fees will apply when the project involves upgrades, renovations, insurance claims, improvements, or structural modifications that enhance or restore the property’s value, functionality, or longevity. These projects are considered an investment in the asset and fall within the owner’s financial responsibility. Fees also apply where significant work is required to resolve or restore significant compliance issues, or to support owners mitigate risk by providing financial statements, summaries or other documentation requests for audits, tax or other purposes. Charges will be allocated to the owners’ property ledger. Where there are not adequate funds to cover the cost of the project in its entirety, the agency will invoice the owner for the owner to pay the cost to the trust account so that the Project Management Charge can be captured in the Owners ledger for tax purposes.
- Guest/Tenant Charges: Fees may be incurred if the project results from damage caused by tenants or their guests, requiring specialized coordination beyond standard maintenance. This includes extensive repairs due to a lack of care or negligence, unauthorized modifications or usage; or damage exceeding routine wear and tear. These charges ensure fairness and accountability in maintaining the property. For a guest, where the total amount of the security deposit cannot cover the cost of the project, the agency will deduct the amount payable from their nominated credit card. Should it not be possible to use a credit card for payment, the agency will raise and invoice to be paid with 7-day payment terms.
Execution & Oversight: Speed and quality are both important, therefore Property Providers will source and coordinate trades, monitor progress, ensures compliance, and oversees quality control in its entirety, unless it is otherwise agreed in writing by all parties.
Billing & Reporting: A transparent reporting and invoicing communication is available and can provide itemized costs upon project completion, ensuring accountability and clarity for owners, guests and tenants.

Rationale:

This policy ensures that project management services are conducted professionally, efficiently, and with financial clarity. By distinguishing Project Management from routine Property Management, Property Providers maintains service quality while protecting owner investments and ensuring fair cost distribution. Transparent fee structures and expert oversight uphold trust and deliver value to owners, guests, and tenants alike.

Review and Amendments: This policy will be reviewed regularly and updated as necessary to ensure compliance with relevant regulations and best practices.

Effective Date: This policy is effective as of January 1^st 2025