A management agreement can look straightforward until the charges are placed beside your expected rent. For landlords asking what fees do property managers charge, the useful answer is not simply a percentage. It is a clear view of every cost, when it applies, whether GST is included, and the work the fee is intended to cover.
The right arrangement should give you professional oversight without leaving uncertainty around leasing, repairs, inspections or the end of a tenancy. Fees differ between agencies, property types and Australian states, so a written schedule of fees is essential before appointing a manager.
The main property management fees
Most property managers charge an ongoing management fee, then separate fees for particular events or services. The management fee is usually calculated as a percentage of rent collected. Across Australia, it commonly sits somewhere around 5.5% to 12% plus GST, although a lower or higher figure can be reasonable depending on the property, location and service level.
A percentage-based fee means the manager is paid in line with the rent actually received. For example, if a property rents for $700 per week and the management fee is 7% plus GST, the base weekly fee is $49. With GST, the charge is $53.90. Over a full year, that is a meaningful operating cost, so it should be assessed alongside service quality rather than in isolation.
The management fee generally covers routine rent collection, tenant communication, arrears follow-up, owner statements, general administration and coordinating ordinary property matters. However, inclusions vary. One agency may include regular inspections and detailed reports within its percentage, while another may charge separately. The agreement should state this plainly.
Letting or new tenancy fees
When a property is advertised and a new tenant is secured, many managers charge a letting fee. This is often expressed as a set amount or a portion of the first week or first few weeks' rent. It recognises the work involved in preparing the listing, arranging advertising, handling enquiries, conducting inspections, processing applications, checking references and preparing lease documentation.
A lower ongoing management rate paired with a substantial letting fee can still be appropriate, particularly where a property is difficult to lease or the manager invests heavily in tenant selection. Equally, landlords should be cautious about comparing percentage fees without considering the cost of tenant turnover.
Some agencies also charge a lease renewal or tenancy continuation fee. This may cover negotiating the renewal, reviewing the rent, preparing documents and updating the agreement. It is worth asking whether this fee applies every time a fixed term ends, including when the tenant simply remains in place.
Advertising and marketing costs
Advertising is commonly charged separately from the letting fee. The cost may include professional photography, online listing placement, signage, floorplans or a premium campaign. For a standard residential rental, the marketing spend should be proportionate to the property and local leasing market.
Ask whether the advertised amount is an estimate or a fixed charge, and whether it includes GST. Also clarify what happens if the first campaign does not secure a suitable tenant. A manager should be able to explain how the campaign will be adjusted, rather than simply extending the spend without a clear strategy.
Inspection fees and reports
Routine inspections protect both the property and the tenancy. Depending on the management agreement, inspections may be included in the ongoing fee or charged per visit. Entry and exit condition reports, final inspections and tribunal-ready documentation may also attract separate costs.
There is no benefit in choosing a cheaper arrangement if it results in limited inspections, unclear reporting or slow action on maintenance concerns. A well-documented inspection report helps identify issues early and provides a reliable record if a dispute arises later.
What fees do property managers charge for maintenance?
Maintenance is one area where the headline management percentage rarely tells the whole story. Property managers may charge a fee for coordinating repairs, supervising larger works, attending the property, obtaining quotes or managing insurance-related repairs. These charges can be a flat fee, an hourly rate or a percentage of the contractor invoice.
For routine repairs, the focus should be on process. Your agreement should identify the manager's authority to approve expenditure without first seeking your instruction. A practical limit enables urgent minor work to proceed quickly, while ensuring larger costs are referred to you for approval.
For significant works, such as replacing a hot water system or rectifying storm damage, ask whether project management fees apply. If they do, confirm the percentage, whether it is charged on all contractor invoices, and what level of coordination is included. Professional management has value, but the scope and price should be transparent.
You should also ask how contractors are selected. A manager should use appropriately qualified and insured trades, communicate estimated costs promptly and retain clear records. The goal is not necessarily the lowest quote every time. It is timely work, proper compliance and a sound outcome for the asset.
Other charges to check before signing
Not every fee will apply to every property, but landlords should review the full schedule rather than relying on a verbal estimate. The following charges are commonly worth clarifying:
- administrative or statement fees, including monthly account fees;
- tribunal, court or debt collection attendance fees;
- fees for issuing notices, breach management or arrears escalation;
- costs for key cutting, smoke alarm compliance, pool compliance or other required services;
- postage, bank dishonour, technology or end-of-financial-year reporting charges; and
- costs associated with insurance claims, vacant property checks or changing managing agents.
Some of these expenses are external disbursements rather than agency income. That distinction matters. A smoke alarm service, for example, may be a necessary third-party compliance cost, while an administration fee is charged by the managing agency. Both can be legitimate, but both should be disclosed clearly.
State and territory tenancy rules also affect processes and charges. Requirements surrounding rental increases, entry notices, bond handling, condition reports and disputes differ across Australia. A capable manager will structure their service around the rules that apply to your property, not apply a one-size-fits-all approach.
How to compare management proposals properly
The lowest percentage is not automatically the best value. A 6% fee with separate inspection, renewal, administration and maintenance coordination charges may cost more over a year than an 8% fee with broader inclusions. Compare proposals on a like-for-like basis using your expected annual rent and a realistic estimate of tenant turnover and maintenance activity.
Request a complete fee schedule, then ask for an example annual calculation. Include the management fee, GST, one new tenancy, routine inspections, a lease renewal and any standard administration charges. If the property is likely to need work, ask how a typical repair invoice would be treated.
It is also sensible to assess the service behind the numbers. Consider the manager's local leasing knowledge, communication standards, arrears process, inspection reporting, tenant selection method and availability when an issue arises. A rental property is a substantial asset. Saving a small amount on the weekly fee is rarely worthwhile if it leads to extended vacancy, poor tenant management or missed maintenance.
Questions that produce clear answers
Before you sign, ask whether fees are quoted inclusive or exclusive of GST, what is included in the ongoing percentage, and which events trigger additional charges. Confirm the length of the management authority, notice required to end it, and whether there is an exit fee if you change agencies or sell the property.
Ask how often you will receive statements and inspection reports, who will be your day-to-day contact, and how urgent repairs are handled after hours. These practical details often reveal more about the quality of management than a headline rate.
A fee structure should support better property outcomes
A transparent property management arrangement gives a landlord certainty over costs and confidence that the asset is being actively managed. It should make commercial sense for both parties: the manager is properly resourced to do the work well, and the owner understands exactly what they are paying for.
Before appointing an agency, take the time to read the authority line by line and compare the total expected cost, not only the advertised percentage. Clear fees, disciplined communication and competent management create the conditions for a more reliable investment experience.