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LANDLORD GUIDE

Property management fees explained

Property management proposals can combine a recurring fee with charges triggered by a new tenant, inspection, renewal, advertising or maintenance work. Compare the complete schedule and service scope.

By RentSeekr editorial teamPublished Reviewed

Key points

Common fee categories

FeeWhat it may coverWhat to ask
Management feeRoutine management, often calculated against rent collectedWhich tasks and reports are included?
Letting feeWork to secure and start a new tenancyHow is it calculated and when is it payable?
AdvertisingPortal, photography, signage or campaign costsWhich channels and assets are included?
Inspection feeRoutine or additional inspectionsAre standard inspections included?
Renewal feeAgreement renewal or extension workIs it fixed, percentage-based or included?
Maintenance administrationCoordinating trades or invoicesIs there a margin, fee or related-party benefit?

Read the inclusions and exclusions

Two proposals with the same percentage can produce different annual costs. Check statements, arrears follow-up, inspections, tribunal attendance, insurance claims, end-of-tenancy work, tax summaries and after-hours coordination.

Model more than one scenario

Calculate a stable-tenancy year, a year with a tenant change and a repair-heavy year. Include vacancy and advertising separately from the agent fee. Use your actual proposal and expected rent; do not rely on a generic savings claim.

Questions to ask an agency

  • Is GST included in every amount shown?
  • Who will personally manage the property and what is their workload?
  • What authority can the agent exercise without approval?
  • How are contractor quotes, commissions and related-party benefits disclosed?
  • What happens if the property is vacant or rent is unpaid?
  • What notice and cost apply if the management agreement ends?

Compare self-management fairly

Self-management may avoid full-service agency fees, but advertising, safety work, repairs, insurance, software and professional advice still cost money. Add the owner’s time and response coverage to the comparison.

Sources and further information

Official guidance changes. Check the source for the current rule in your jurisdiction.