Guide
Property management fees in Australia: what landlords pay and what's included
The ongoing management fee is only part of what a property manager charges. Here's how fees are usually structured, the typical ranges, what's deductible, and how to compare quotes like for like.
By Mossy Taheri, licensed buyer’s agent · Updated
The short answer
Most Australian property managers charge an ongoing management fee of about 5% to 10% of the rent plus GST, a letting fee of one to two weeks’ rent each time they find a tenant, and smaller charges for things like lease renewals and inspections. On a property renting for $650 a week, the total is often around $4,261 a year.
The fees property managers charge
| Fee | Typical amount | When |
|---|---|---|
| Management fee | 5% to 10% of rent collected | Every rent payment |
| Letting (leasing) fee | 1 to 2 weeks' rent | Each new tenant |
| Lease renewal fee | Often $100 to $300 | Each renewal |
| Advertising | Often $100 to $500 | Each vacancy, sometimes included |
| Routine inspection fee | Often $0 to $100 | Each inspection, sometimes included |
| Tribunal or hearing attendance | Hourly or fixed fee | Only if needed |
| Admin or statement fee | Often a few dollars a month | Monthly, sometimes included |
These are typical ranges, not a price guide. Fees vary between cities, agencies and properties, and what’s included in the management fee varies too.
What it adds up to: a worked example
A property renting for $650 a week ($33,800 a year), with a 7.5% management fee and a new tenant once a year:
- Management fee: 7.5% + GST of $33,800 = about $2,789
- Letting fee: 1.5 weeks' rent + GST = about $1,073
- Lease renewal, advertising and inspection charges: about $400
- Total: about $4,261 a year, or 12.6% of the rent
Run this through your numbers with the cash flow calculator to see the effect on what the property costs you to hold.
How to compare quotes
- Ask for the total cost over a year with one new tenant, not just the percentage.
- Check what's included: advertising, inspections, end-of-year statements, tribunal attendance.
- Ask how many properties each manager looks after; very high numbers can mean slow responses.
- Ask about their vacancy and arrears rates, and how quickly they fill an empty property.
- Read the management agreement for the notice period and any fee for ending it.
Tax
Property management, letting and lease renewal fees are generally deductible against your rental income in the year you pay them. Keep the statements your manager sends; they make your tax return much easier. General information only; check with your accountant.
Self-managing instead
Managing the property yourself saves the fees, but you handle tenant checks, the lease, bond lodgement, repairs, arrears and the tenancy laws of that state. It can work if you live nearby and have the time. Our guide to self-managing or hiring help goes through the trade-offs.
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Book a free discovery callProperty management fees: common questions
What is a normal property management fee in Australia?
Most managers charge an ongoing fee of about 5% to 10% of the rent collected, plus GST. Fees tend to be lower in capital cities with more competition and higher in regional areas and for low-rent properties. The other charges, such as letting and lease renewal fees, often matter as much as the percentage.
What is a letting fee?
A one-off fee for finding a new tenant, usually equal to one to two weeks' rent plus GST. It covers advertising, inspections, checking applications and preparing the lease. Ask whether advertising is charged on top.
Are property management fees tax deductible?
Generally yes. Fees for managing a rental property, including letting and lease renewal fees, are usually deductible in the year you pay them, as are most other costs of earning the rent. Confirm your situation with your accountant.
Is it worth paying a property manager?
For most investors who live away from the property, yes. A good manager screens tenants, keeps the rent at market, handles repairs and arrears, and knows the tenancy law in that state. Self-managing saves the fee but takes time and carries legal risk if you get the process wrong.
Can I negotiate property management fees?
Often. Managers may lower the percentage or waive set-up and letting fees, especially for a well-presented property or several properties. Compare the full package rather than the headline rate alone.
General information only. It doesn’t consider your personal circumstances and isn’t financial, tax, credit or legal advice. Speak to a licensed professional before you act.