A property manager handles the day-to-day management of a rental property on behalf of a landlord — from tenant screening and rent collection to maintenance coordination and tenancy law compliance. Most Australian investment property owners use a property manager, particularly for properties in different suburbs or states. This guide explains what property management involves, what it costs, and how to choose a manager.
What Does a Property Manager Do?
A licensed property manager (working under a real estate agent’s licence) typically provides:
- Tenant sourcing: Advertising the property, conducting inspections, screening applicants (rental history, income verification, references)
- Lease preparation: Preparing a legally compliant tenancy agreement under the relevant state Residential Tenancies Act
- Rent collection: Collecting rent, depositing to landlord, handling arrears and following up overdue rent
- Routine inspections: Typically 2–4 inspections per year to assess the property condition
- Maintenance coordination: Receiving maintenance requests, engaging tradespeople, managing repairs
- End-of-tenancy: Bond lodgement and release, outgoing inspection, cleaning/damage claims
- Tenancy law compliance: Keeping up with state tenancy law changes (notice periods, rent increase rules, etc.)
Typical Property Management Fees in Australia
| Fee type | Typical range |
|---|---|
| Management fee (ongoing) | 7–10% of gross weekly rent |
| Letting fee (new tenant) | 1–2 weeks’ rent |
| Lease renewal fee | 0.5–1 week’s rent |
| Routine inspection fee | $0–$50 per inspection |
| Maintenance coordination (above a threshold) | Some managers charge 5–10% of maintenance invoice |
| VCAT/tribunal representation | Charged at hourly rates |
Management fee
The ongoing management fee — typically 7–10% of gross weekly rent — covers all routine management tasks. In high-demand capital city markets, fees tend to be lower (7–8%). Regional markets may be higher (9–10%) reflecting smaller rent amounts and fewer competing agencies.
On a property renting at $550/week ($28,600/year), a 9% management fee = $2,574/year — a meaningful and fully deductible cost.
Letting fee
Charged when a new tenant is found and placed. This is separate from the ongoing management fee. A 2 weeks’ rent letting fee on a $550/week property = $1,100. This recurs each time a tenant vacates and a new one is found.
Self-Managing vs Using a Property Manager
| Factor | Self-manage | Property manager |
|---|---|---|
| Cost | Saves management fee | Management fee + letting fee |
| Time | Significant time input | Minimal landlord time |
| Expertise | Requires tenancy law knowledge | Professionally managed |
| Tenant screening | DIY | Professional screening |
| Maintenance network | Build your own | Established tradesperson network |
| Emergency response | Must be available 24/7 | Manager handles |
| Legal compliance | Full responsibility | Manager handles compliance |
Self-managing suits landlords who:
- Live nearby and have the time and knowledge
- Have prior real estate experience
- Invest in areas they know well
- Are comfortable managing the tenancy relationship directly
Most investors — particularly those with interstate properties or multiple properties — use a property manager.
How to Choose a Property Manager
Key questions to ask when comparing property managers:
- What is your management fee and what does it include? (Clarify exactly what’s included/excluded)
- What is the letting fee?
- How many properties do you currently manage? (Overstretched managers may provide poor service)
- How do you screen tenants? (TICA/NTIS database checks, income verification)
- How do you handle maintenance? (Who approves expenditure, what’s the threshold?)
- How do you communicate with landlords? (Monthly statements, inspection reports)
- What is your vacancy rate across your managed portfolio?
Property Manager Fees Are Deductible
All property management fees — including the ongoing management fee and letting fee — are immediately deductible against rental income in the financial year they are paid. This reduces the after-tax cost of property management.
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Frequently Asked Questions
How much does a property manager cost in Australia? Typically 7–10% of weekly gross rent for ongoing management, plus 1–2 weeks’ rent as a letting fee when a new tenant is placed. On a $550/week property, expect ongoing management costs of approximately $2,000–$2,900/year plus occasional letting fees.
Is a property manager worth it? For most investors — particularly those with interstate holdings, full-time jobs, or multiple properties — yes. The time saved, tenant quality, and legal compliance support generally justify the cost. For landlords living close to the property with real estate experience, self-management may be viable.
Can I change property managers? Yes. You can terminate a property management agreement with appropriate notice (check the agreement for notice period — typically 30–90 days). Ensure all tenant bond records, keys, and documentation are transferred to the new manager or yourself.
This article provides general financial information only. For advice tailored to your situation, speak with a licensed financial adviser through the ASIC financial advisers register or MoneySmart.