A managing agent (also called a property manager or rental manager) is a licensed real estate professional who manages a rental property on behalf of the landlord. If you own an investment property and do not want to handle day-to-day tenant management yourself, a managing agent takes care of it for a fee — typically a percentage of the weekly rent.
What does a managing agent do?
- Markets your property and finds tenants
- Screens tenants (reference checks, rental history, employment verification)
- Prepares and signs the lease agreement on your behalf
- Collects rent and chases arrears
- Conducts routine inspections (typically every 3 to 6 months)
- Organises maintenance and repairs using their trusted trades network
- Manages lease renewals and rent reviews
- Handles tenant disputes and breach notices
- Represents you at VCAT or state tribunals if required
- Provides monthly financial statements and end-of-year tax summaries
What does a managing agent charge?
| Fee type | Typical range (VIC) | What it covers |
|---|---|---|
| Management fee | 6% to 10% of weekly rent (+ GST) | Ongoing management, rent collection, inspections |
| Letting fee | 1 to 2 weeks rent | Finding and placing a new tenant |
| Lease renewal fee | 0.5 to 1 week rent | Renewing lease with existing tenant |
| Inspection fee | $0 to $50 per inspection | Routine property inspections |
| Tribunal fee | $50 to $200+ per appearance | Representing you at VCAT or state tribunal |
Fees vary by state and agency. Always compare at least 3 agencies and read the management agreement carefully before signing.
When should I use a managing agent?
A managing agent makes sense if you live far from your investment property, have multiple properties, work full-time, want professional lease management, or simply do not want the stress of dealing with tenants directly. For most investors, the management fee is a small price to pay for professional handling of what is often their largest asset.
What should I look for in a managing agent?
- Specialist property management focus (not just a sales agency that also does PM)
- Low days vacant and high lease renewal rates
- Transparent fee structure with no hidden charges
- Dedicated property manager (not a rotating team)
- Online landlord portal for real-time reporting
- Strong knowledge of local tribunal processes and tenancy law
Frequently Asked Questions
Can I switch managing agents mid-lease?
Yes. You can switch managing agents without the tenant’s consent. Give your current agent the required notice (check your management agreement — typically 30 to 90 days), choose your new agency, and the tenant is notified of the change in payment details. The lease continues uninterrupted.
Is self-managing my property a good idea?
Self-managing can save you 7% to 10% of rent per year but requires significant time, legal knowledge and local presence. It works best for experienced landlords with properties close to home and stable long-term tenants. For most investors, professional management delivers better outcomes net of fees.
Are managing agent fees tax deductible?
Yes. Property management fees — including the management percentage, letting fees, lease renewal fees and inspection fees — are all tax deductible as rental property expenses. Keep all invoices and your monthly statements for your tax return.
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