How much do property managers charge?

Property management fees vary depending on the location, agency, andlevel of service. Here’s a breakdown of the most common charges.

1. Management Fee

The management fee is the main ongoing charge, usually calculated as a percentage of the weekly rent. This typically ranges from 5% to 10% of the gross rent collected. For example, if your property rents for $500 per week and your management fee is 8%, you’ll pay $40 per week, or around $2,080 per year.

Factors that affect this fee include:

- Property location

- Property type and number of tenants

- Whether the service is basic or full-service

2. Letting or Leasing Fee

This is a one-off fee charged when a new tenant is secured. It generally equals one to two weeks’ rent and covers marketing, inspections, applicant screening and preparing the lease agreement.

3. Lease Renewal Fee

Some agencies charge a lease renewal fee when an existing tenant signs a new fixed-term lease. This is often a flat fee or a portion of one week’s rent.

4. Advertising Costs

Marketing the property may be included in the letting fee, or it may be charged separately. Standard online advertising packages usually cost between $100 and $300 depending on the platform and exposure level.

5. Routine Inspection Fees

Most property managers conduct two to four routine inspections per year. Someinclude these in the management fee, while others charge around $50 to $100 perinspection.

6. Administrative Fees

Some agencies charge small fees for monthly statements, postage or document handling. These are usually $5 to $15 per month and may be negotiable.

7. Tribunal Representation

If a tenancy issue requires legal action or attendance at a tribunal, some managers charge an hourly or flat fee for representing the landlord.

Are the Fees Worth It?

A professional property manager can save time, reduce stress, and help protectyour investment. They handle rent collection, maintenance, tenant queries, inspections and compliance, ensuring everything runs smoothly and legally.

Final Thoughts

Property management fees are a tax deductible expense and vary depending onservice level and location. When comparing managers, it’s important to lookbeyond just the cost. Consider their experience, communication style, and how they’ll support the long-term performance of your property.

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