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Ep 14 | Property Management in Australia

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News and Commentary

Episode 14 Summary (Money Side Up Podcast, “Property Management in Australia”)

1) Macro and rates backdrop (RBA + Australian markets)

  • The hosts discuss an upcoming RBA interest rate decision, recorded shortly before the meeting, with market pricing heavily leaning toward a rate cut (around a 93% chance).
  • Jared says he’d like to see a cut and expects it could reduce many borrowers’ mortgage rates. He notes many mortgages sit around the mid-to-low 6% range and could move toward the high 5% range.
  • Will is more cautious, suggesting the RBA may hesitate due to inflation concerns and election timing, preferring to be “late” rather than risk triggering another inflation problem.
  • The hosts expect a gradual path rather than one major change:
    • Possibly 1–3 cuts in 2025 and 1–3 in 2026
    • Mortgage rates may not return quickly to very low levels
    • The “optimistic” scenario of starting with a 1 or 2 cuts is treated as unlikely without major changes.
  • They discuss potential impacts on property prices, including:
    • Some areas/segments have recently performed strongly (noted as ~under 1.2–1.5 price segments).
    • More expensive/luxury segments may soften, alongside refinancing/borrowing constraints that stop some buyers.
    • Refinancing limitations may explain why some owners wait or renovate rather than move.

2) Policy and housing finance themes (first home / mortgage relief)

  • An article is referenced about a Labor government proposal/promise involving how HECS/Hecs-like debt is treated for first home buyers.
  • The wording is described as ambiguous, seemingly aimed at people near the end of eligibility/term (or similar situations).
  • The hosts interpret it as potentially improving borrowing capacity for first-home buyers and refinancers who are currently struggling.

3) HECS/HECS repayment vs borrowing capacity (“It’s income assessed”)

  • A key clarification: HECS is assessed based on income (borrowing capacity), not the debt balance itself, in the simplistic way many assume.
  • Subtitle examples describe how banks may “shade” income and apply buffers, which can reduce borrowing capacity more than borrowers expect.
  • Takeaway: review your HECS strategy and the full borrowing calculation, because paying down HECS may not automatically increase capacity the way people expect.

4) Politics and tariffs as an investment/interest-rate risk

  • The hosts discuss tariffs tied to US political conditions, including references to Trump and outcomes described as “predictable unpredictable.”
  • They argue tariffs could:
    • Strengthen the US dollar
    • Add upward pressure on rates or slow US rate cuts
    • Affect Australian expats and investment portfolios through currency and US-linked earnings
  • They frame volatility as potentially creating investment opportunities, not only risks.
  • They encourage investors to reassess investment purpose and exposure (including businesses tied to US earnings, taxes, or regulatory change).

5) Guest interview: Ashley Goodchild on Property Management in Australia

Guest background and positioning

  • Ashley Goodchild is described as a leading voice in Western Australian property management, connected to the South Perth market and as a director of a property-related business.
  • She claims to teach property managers how to build the right property management businesses.
  • The hosts cite their own previous experiences as positive (and not paid) to support her credibility.

6) How to choose a good property manager (and red flags)

Red flags / warning signs

  • A major “controversial” red flag: a property management business operating as a “poor cousin” to sales, especially when the sales director/principal is very sales-focused and property management isn’t prioritized.
  • Another warning: relying only on top search rankings instead of credible reviews.

What to look for (practical checklist)

  • Property-management focused ownership: Ashley emphasizes a director/principal who is 100% focused on property management operations day-to-day.
  • Use Google reviews thoughtfully:
    • Look at Google reviews, not just the name appearing first on listings.
  • Ask about portfolio vs task management:
    • She distinguishes portfolio-based management vs task-based management (separate specialists for leasing, inspections, tenants, owners).
    • Her view: portfolio management supports a healthier tenant–owner–manager relationship.
    • Investors should ask directly which model the office uses.
  • Escalation and backup:
    • Ask who you speak to if the property manager is on leave or sick.
    • Ask who handles escalations.

7) Fee-focused vs value-focused decisions

  • Ashley argues investors often get trapped negotiating fees only, while the bigger determinants are:
    • Speed of marketing and achieving tenancies
    • Quality of service, viewings, negotiation, and execution
  • She suggests small fee savings can be erased by slower leasing outcomes.
  • Recommendation: compare fee schedules directly and evaluate total outcomes, not just percentages.

8) Leasing process: questions that predict performance

Ashley recommends owners ask:

  • How many home opens will be required?
  • Over what timeframe will they occur?
  • How quickly can the property be put on the market (including any delays if preferred vendors are unavailable)?
  • Her expectation model suggests successful leasing often involves multiple home opens within ~7–10 days, depending on tenant availability.

9) Contract pitfalls and negotiation points

  • Common term lengths: many agreements around ~24 months.
  • Ashley says she uses two-year agreements mainly for time-management reasons.
  • She advises caution with contracts longer than two years.
  • Key risk: if an owner needs to exit early (sell or move in), the contract may allow liquidated damages, described as potentially up to 50% of what the agent would have earned over the management period.
  • Practical recommendation: negotiate a special condition allowing the owner to terminate with no penalty, with short notice like 7–14 days.

10) Costs and fee categories (what owners should expect)

A) Ongoing management fees

  • Management fees are typically a percentage of gross rent collected, deducted as rent is received.
  • Routine inspections (in WA): up to four times per year.
    • Typical inspection fees mentioned: roughly $77–$99 per inspection (varies by state and property).

B) Leasing/marketing fees

  • Advertising/portal fees:
    • Portals often charge per property, and multiple portals can mean multiple charges.
  • Letting fee:
    • Typically around two weeks’ rent
    • Explained as covering the full leasing process: viewings, applications, lease preparation/signing, and bond lodgement.

  • Condition reports, including legislative requirements for each tenant.

  • She advises budgeting that the first ~3 weeks of rent may be absorbed by leasing-related fees.

11) “Hidden fees” and transparency

  • Ashley’s view: she’s not seeing true “hidden fees” issues; transparent property management means fees are disclosed up front.
  • She notes potential gaps if property managers don’t charge for certain tasks (e.g., some may omit an end-of-lease financial summary fee), implying inconsistencies could emerge later.

12) Managing different landlord/client mindsets

  • Ashley says there’s no fundamental difference between expats vs residents.
  • The real distinction is:
    • Intentional investors vs accidental investors
  • Accidental/owner-occupier scenarios (e.g., renting temporarily while overseas) tend to be more emotion-driven, requiring more involvement in maintenance decisions.
  • Intentional investors tend to approach decisions more businesslike and standardized.

13) Property competitiveness: pricing, evidence, and market supply/demand

  • Ashley says tenants don’t always require “modern pristine”—generally clean and well-maintained is what matters.
  • She recommends landlords:
    • Ask for evidence for rent pricing, not just a number.
    • Assess supply/demand using rental listing counts, such as comparing how many rentals exist in a suburb (she mentions realestate.com).
  • Operational expectation:
    • If there are few home open attendees, rent may be priced too high.
    • If there are many, rent may be priced too conservatively.

14) Maintenance budgeting: what’s normal and what’s proactive

  • Maintenance often spikes in the first 12 months after acquisition.
  • In WA, Ashley considers plumbers/electricians being called once or twice per year fairly normal.
  • Repeated callouts can indicate the property needs deeper renovations.
  • She emphasizes:
    • Proactive maintenance reduces long vacancies and expensive catch-up after tenants leave.
    • Bundling small repairs into one visit prevents the “come back later” cost cycle.

15) Compliance and regulation changes (WA focus + cross-state differences)

State-by-state complexity

  • Australia’s rules are state-by-state, making multi-state ownership harder to navigate.

WA changes mentioned (generally positive/best-practice)

  • Rent increases: moved to 12-month minimum frequency (instead of every six months).
  • Pets: owners generally must accept pets, but can set conditions (e.g., carpet cleaning receipts).
  • Minor modifications: tenants can make reasonable changes for safety/utility (examples include shelves/toolbook, hanging points), sometimes with tenant-paid costs.

Eviction/tenancy rules risks discussed

  • Ashley notes WA currently allows no-grounds termination (ending leases without a reason with notice), which she considers important for handling situations involving safety risks even when rent is being paid.
  • She expresses concern that:
    • No-grounds termination could be removed in WA like in other states, or
    • Rent increases could become property-linked rather than tenant-linked, which she argues could be inequitable when tenants cycle quickly.

16) Final advice: build trust and ask questions early

  • Ashley wants owners to trust the industry more, emphasizing there are many excellent property managers.
  • Her core recommendation is relationship-building:
    • Ask hard questions upfront
    • Get to know the property manager personally
    • Treat them as a long-term partner, not only a vendor called when something breaks
  • She also encourages landlords to connect via social channels and maintain communication beyond urgent maintenance.

Presenters/Contributors

  • Jared Brown (Senior Financial Advisor; presenter)
  • Will K (Will) (Colleague/Friend; presenter)
  • Ashley Goodchild (Guest; property management expert)

Original video