If you own an investment property and hire a property manager, you will pay a property management fee. This guide explains exactly what that fee covers, what typical rates are across Australia in 2026, and what to watch out for when comparing property managers.
What Is the Standard Property Management Fee in Australia?
The management fee is charged as a percentage of the weekly rent collected. It is the ongoing cost of having a property manager find tenants, collect rent, handle maintenance requests and manage the tenancy on your behalf.
| State | Typical Management Fee |
|---|---|
| Victoria (Melbourne) | 6% to 8% of rent collected |
| New South Wales (Sydney) | 7% to 10% of rent collected |
| Queensland | 8% to 12% of rent collected |
| Western Australia | 8% to 10% of rent collected |
| South Australia | 7% to 9% of rent collected |
What Does the Management Fee Include?
- Monthly rent collection and disbursement to the landlord
- Routine inspections (typically 2 to 4 per year)
- Handling maintenance requests and coordinating tradespeople
- Issuing rent increase notices in line with legislation
- Liaising with tenants on day-to-day matters
- Monthly and annual financial statements
What Is NOT Included in the Management Fee?
Most property managers charge additional fees for services beyond routine management. These are separate line items on your monthly statement:
- Letting fee: 1 to 2 weeks rent each time a new tenant is placed
- Lease renewal fee: $100 to $300 each time an existing tenant renews
- Tribunal representation: Charged hourly if your case goes to VCAT or NCAT
- Advertising costs: Domain and realestate.com.au listing fees (typically $150 to $400)
- Routine inspection reports: Some agencies charge $50 to $100 per report above a set number
How Much Does Property Management Cost Per Year?
On a property renting at $600 per week in Melbourne, a full-service property manager at 7.5% costs approximately $2,340 per year in management fees alone, plus letting fees and other charges. Total annual property management costs typically range from $3,500 to $5,500 per property.
GeeVee Verdict
Do not choose a property manager on fee alone. A cheaper manager who misses rent reviews, fails to inspect regularly, or allows a poor-quality tenant to stay will cost you far more than the difference in percentage points. Look at their vacancy rate, review scores, and response time before signing a management agreement.
Frequently Asked Questions
Can I self-manage my rental property in Victoria?
Yes. Self-managing is legal in all Australian states. You handle tenant selection, rent collection, inspections and maintenance yourself. It saves the management fee but requires time, knowledge of the Residential Tenancies Act, and availability to respond to tenant issues.
Is the property management fee tax deductible?
Yes. All property management fees — including the management percentage, letting fees, advertising and lease renewal fees — are fully deductible against your rental income for tax purposes.
How do I switch property managers?
You can switch property managers at any time by giving written notice as required under your management agreement (typically 30 to 90 days). The new manager takes over the tenancy file, bond, and lease without disturbing the tenant.
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