Choosing the right property manager is one of the most important decisions a landlord makes. A good property manager protects your asset, maximises your rental income and keeps your tenants happy. A bad one costs you money, causes vacancies and creates legal headaches. Here is how to choose wisely.
What to Look for in a Property Manager
- Local market knowledge: Do they know your suburb’s rental market, vacancy rates and comparable rents?
- Transparent fee structure: Management fee, letting fee, lease renewal fee, inspection fee — get all fees in writing before signing.
- Communication standards: How often will they update you? Who is your point of contact?
- Tenant screening process: How do they check tenant history, income and references?
- Maintenance response times: What is their process for urgent and non-urgent repairs?
- VCAT and compliance experience: Have they handled disputes, bond claims and compliance issues?
Key Questions to Ask a Property Manager Before You Sign
- What is your total fee structure including all charges?
- How many properties does each property manager look after?
- How do you screen tenants?
- How quickly do you respond to maintenance requests?
- What is your average vacancy period for properties like mine?
- How do you handle rent arrears?
- What notice do I need to give if I want to switch managers?
Red Flags to Watch For
- Vague or verbal-only fee structures
- High property manager to property ratios (over 150 properties per PM)
- Slow response to your initial enquiry
- No clear tenant screening process
- Reluctance to provide references from current landlords
Property Manager Fee Structure — What Is Reasonable?
| Fee Type | Typical Range | Notes |
|---|---|---|
| Management fee | 5–10% of weekly rent | Ongoing weekly charge |
| Letting fee | 1–2 weeks rent | Charged when a new tenant is placed |
| Lease renewal fee | 0.5–1 week rent | Charged on each lease renewal |
| Routine inspection fee | $50–$120 per inspection | Some PMs include in management fee |
How to Switch Property Managers
If you are unhappy with your current property manager, switching is easier than most landlords think. You simply need to check your management agreement for the notice period (usually 30–90 days), give written notice, and appoint your new manager. Your new PM handles the transition including notifying the tenant.
How Collings Can Help
Collings Property Advisory can give you independent advice on choosing the right property manager, reviewing your management agreement, and assessing whether your current PM is performing. Our fixed-fee advisory service costs $4,500 + GST and covers all aspects of property management decisions.
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