Property Management Fees in Australia: What You Should Pay
Property management fees are one of the most visible ongoing costs of owning an investment property in Australia. Understanding what you pay, what it covers, and how to evaluate whether it is worth it helps you get better value from your property manager.
What Property Managers Do
A property manager acts as the intermediary between you and your tenant. Their core responsibilities include:
- Advertising the property and finding suitable tenants
- Processing applications and conducting reference checks
- Preparing and executing the lease agreement
- Collecting rent and managing arrears
- Conducting routine property inspections (typically every 3–6 months)
- Coordinating maintenance and repairs
- Handling tenant communications and complaints
- Preparing financial statements and end-of-year reports for your tax return
- Managing the bond lodgement and release process
- Advising on rent reviews and market conditions
Types of Fees
Property management is not a single fee — most agencies charge several:
Management Fee
The primary ongoing fee, charged as a percentage of the weekly or monthly rent collected. Rates vary by state:
- NSW and VIC: typically 5–8%
- QLD: typically 8–10%
- WA and SA: typically 8–10%
Some agencies charge 12% or more in higher-maintenance or higher-service markets.
On a $550/week property, a 9% management fee equals $49.50 per week or approximately $2,570 per year — and this is tax deductible.
Letting Fee
Charged when the property is leased to a new tenant. Typically 1–2 weeks' rent. Some agencies charge this on every new tenant, others only on new leases (not renewals).
Lease Renewal Fee
Charged when an existing tenant re-signs for a new fixed term. Usually 0.5–1 week's rent. Some agencies include this in the management fee — check the management agreement.
Inspection Fees
Some agencies charge separately for routine inspections ($50–$100 each) while others include this in the management fee. Confirm before signing.
Maintenance Coordination Fee
Charged as a percentage (5–10%) of the cost of repairs and maintenance jobs coordinated by the property manager. This can add up if your property requires frequent work.
Advertising Fee
Costs for listing the property on platforms like Domain and realestate.com.au, plus professional photography. Typically $200–$600 per letting. Usually charged at cost, not marked up.
EOFY Statement Fee
Some agencies charge $30–$80 for preparing the annual income and expenditure report for your tax return.
Evaluating Value
The cheapest management fee is not necessarily the best value. A property manager who:
- Achieves lower vacancy between tenancies
- Selects better tenants who pay on time
- Handles maintenance promptly to protect the property
- Conducts thorough inspections
...will save you more than the difference in fee percentage. Ask for vacancy rates and tenant retention data when comparing agencies.
Self-Managing Your Property
Some landlords manage their own property to save the management fee. This is feasible if you live nearby, have time to respond to maintenance and tenant issues, are familiar with tenancy legislation, and are comfortable with tenant relationship management. The time commitment should not be underestimated — and mistakes with legal compliance can be costly.
Management Agreement
Always read the management agreement carefully before signing. Key points to check:
- The total of all fees (management, letting, inspection, maintenance coordination)
- The notice period required to terminate the agreement (typically 30–90 days)
- Who authorises maintenance and what the spending limit is before they must call you
- How frequently rent is disbursed (weekly or monthly)
- Whether they use a dedicated property management trust account
Use the Investment Property Calculator to include property management fees in your net cash flow and yield calculations.