A property tech start-up has made a move into the Queensland market, expressing an intention to help the state’s 750,000 property investors cut their management fees.
:Different has announced its launch in Brisbane, with the company expressing an intention to cut unnecessary high margins for a fairer and more transparent service.
According to a statement, the start-up said it offers a fixed fee of $100 per month for all properties, “which could help Queenslanders save in excess of $169 million a year”.
:Different’s co-founder Mina Radhakrishnan said that for many Australians, “owning an investment property is their nest egg – a means to secure their financial future”.
“But for too long, traditional property managers have charged obscene amounts of money for very little support. The current model of charging a percentage fee is fundamentally flawed,” the co-founder said.
“Why should property managers earn more based on what a property is worth if they’re delivering the same service?”
The company has reported that Queenslanders could save between $280 and $1,000 a year on property management fees by switching their property manager.
According to modelling provided by :Different, savings increase by an additional $1,000 a year when hidden costs like lease preparation, renewals and ongoing administration fees are also considered, which most traditional property managers charge on top of monthly fees.
“A few hundred dollars a year can make a big difference to your savings over the lifetime of your property. And when you calculate this as a statewide figure — the savings are in the millions,” Ms Radhakrishnan continued.