Common fee categories
| Fee | What it may cover | What to ask |
|---|---|---|
| Management fee | Routine management, often calculated against rent collected | Which tasks and reports are included? |
| Letting fee | Work to secure and start a new tenancy | How is it calculated and when is it payable? |
| Advertising | Portal, photography, signage or campaign costs | Which channels and assets are included? |
| Inspection fee | Routine or additional inspections | Are standard inspections included? |
| Renewal fee | Agreement renewal or extension work | Is it fixed, percentage-based or included? |
| Maintenance administration | Coordinating trades or invoices | Is 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.
Worked example: a lower percentage can cost more
This hypothetical comparison uses $600 weekly rent collected for 52 weeks ($31,200). All example fees include GST. Neither proposal represents a real agency or a market average. Assume the service scope is the same and one new tenancy starts during the year.
| Selected agency costs | Proposal A | Proposal B |
|---|---|---|
| Management fee on collected rent | 7% × $31,200 = $2,184 | 6% × $31,200 = $1,872 |
| Letting fee, charged once | $600 | $1,200 |
| Advertising, charged once | $300 | $450 |
| Total selected fees | $3,084 | $3,522 |
Build a comparison you can check
- Record whether the fee applies to rent collected, rent due or another amount.
- Put the GST-inclusive amount beside every fee.
- Mark each charge as recurring, per event or optional.
- Run both a continuing-tenancy year and a tenant-change year.
- Ask the agency to confirm unclear exclusions in writing before deciding.
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.
How RentSeekr supports this step
The supported workspace connects property listings, inspection bookings, applications, agreement preparation and signing, condition records, repairs, documents and tenancy communication. Free planning tools help you explore management costs, cash flow, rental yield and readiness before committing to a rental. Rent records reflect entered information; they do not collect rent or independently verify payment. Expense, bill and forecast views are planning records. RentSeekr does not lodge bonds or determine a party’s entitlement to money.
Sources and further information
Official guidance changes. Check the source for the current rule in your jurisdiction.