Property management fees explained for Australian landlords
Leasing · 8 min read · Updated 31 July 2026
Landlords tend to compare property managers on one number — the management percentage — and then wonder why the annual statement never matches the maths. The headline rate is rarely where the money goes. Here is every fee a managing agent can charge in Australia, what is reasonable, and which ones quietly erode your yield.
The management fee
This is the percentage of rent collected that the agency keeps, charged monthly and usually quoted plus GST. Nationally it runs from about 5% to 12%, with metropolitan Sydney and Melbourne at the low end (5%–7%), Brisbane and Perth in the middle (7%–9%), and regional markets and smaller states at the top (up to 12%) where there are fewer agencies competing.
On a property renting at $650 a week, each percentage point is roughly $340 a year. Worth negotiating — but not worth chasing to the point of hiring a manager with eighty properties under their sole care.
Every other fee, and what is reasonable
| Fee | Typical charge | What it is |
|---|---|---|
| Letting / leasing fee | 1–2 weeks' rent | Charged each time a new tenant is placed |
| Lease renewal fee | $100–$400 | Charged to re-sign an existing tenant |
| Advertising | $100–$500 | Portal listings and photography for a vacancy |
| Routine inspections | $0–$150 each | Often 2–4 per year; should be included |
| Monthly admin fee | $3–$12/month | Statements and processing |
| End-of-year statement | $50–$100 | Annual summary for your accountant |
| Tribunal attendance | $50–$100/hour | Representation at NCAT/VCAT etc. |
| Maintenance supervision | 5–10% of job | Percentage on top of tradesperson invoices |
Two of these deserve particular attention. Maintenance supervision creates an incentive to approve work rather than question it. And a lease renewal fee charges you for the agency's easiest task of the year — keeping a tenant who already lives there. Both are commonly waived when asked.
Work out the real annual cost
Compare agencies on total dollars, not the percentage. For a property at $650 per week ($33,800 a year) with one tenant change:
- Agency A — 6% "budget": $2,028 management + 2 weeks letting ($1,300) + $330 advertising + $220 renewal + $96 admin = $3,974
- Agency B — 7.7% all-inclusive: $2,603 management + 1 week letting ($650), advertising, renewals and statements included = $3,253
The higher percentage is $721 a year cheaper. This is the single most common mistake landlords make when switching managers.
What good management is actually worth
Fees are tax-deductible against rental income, so the real difference between a good and a cheap manager is smaller than it looks — and the cost of poor management is much larger. Two extra weeks of vacancy on that same property is $1,300 gone. A tenant placed without proper reference and tribunal checks can cost months of arrears plus repair costs. Deferred maintenance turns $300 jobs into $3,000 ones.
Ask each agency for the numbers that reveal whether they are any good:
- Average vacancy period across their rent roll, in days
- Properties managed per property manager (above ~120 is a warning sign)
- Arrears rate, and at what point they act on it
- Staff turnover — how long the person managing your property has been there
- Whether routine inspection reports include photographs
Before you sign the management agreement
- Get every fee in writing, including the ones described as "rarely charged".
- Check the termination clause. Thirty days' notice without penalty is reasonable; long lock-ins with exit fees are not.
- Set a maintenance approval threshold — typically $300–$500 — above which they must call you.
- Confirm who holds the bond and how quickly rent is disbursed to you.
- Ask whether trade referral commissions are received. The honest answer is sometimes yes.
How we help
Sales & Leasing shortlists up to three property managers for your property based on genuine performance data — vacancy periods, arrears, portfolio load — not on who pays us to appear. Every agency in the network is charged the identical fee, and only on successful completion of a lease. No lease, no fee. The management terms are negotiated before you meet anyone.
The short version
Compare total annual dollars, not percentages. Push back on renewal fees and maintenance supervision percentages. Ask for vacancy days and portfolio size. And remember that the cheapest manager in the suburb is usually the one with too many properties to notice yours.