1. How property management fees work in Australia

Property management fees are calculated as a percentage of your weekly rent (similar to how Consumer Affairs Victoria outlines the arrangement). If your property rents for $600 per week and your manager charges 7%, you pay $42 per week in management fees.

That percentage is the headline number, but it is rarely the full cost. Most property managers also charge a letting fee when they find a new tenant, plus a list of additional fees for things like lease renewals, tribunal attendance, and advertising. GST may or may not be included in the quoted rate, so always confirm whether the percentage you are comparing is GST-inclusive.

The range across Australia sits between roughly 5% and 15% of weekly rent. Where you fall in that range depends on three things: which state you are in, whether the property is in a metro or regional area, and how competitive the local market for property managers is.

2. The fees most owners don't see coming

Before comparing percentages, understand what else you may be charged:

Letting fee (finding a tenant)

Typically 1 to 2 weeks' rent. In regional areas, this can stretch to 3 or 4 weeks. You pay this every time a new tenant is placed, so high turnover properties pay it more often.

Advertising and marketing

Photography, online listing fees, signage. Some managers include this in the letting fee. Others charge separately, anywhere from $100 to $500 per campaign.

Lease renewal fee

Charged when an existing tenant signs a new lease. Usually $100 to $300 or a percentage of one week's rent. Not all managers charge this, and it is worth negotiating out.

Inspection fees

Routine inspections (typically quarterly) may be bundled into the management fee or charged at $50 to $150 per inspection. Check the agreement.

Maintenance coordination markup

Some managers add a margin on top of tradesperson invoices (often 10% to 15%). Others pass through costs at face value. Ask directly.

Tribunal and legal representation

If a tenancy dispute reaches the tribunal, representation fees can be $300 to $1,000+. This is rare but expensive when it happens.

End-of-year statements and reporting

Usually included, but some managers charge $50 to $100 for annual tax statements. Monthly reporting may cost extra.

Many of these costs are tax deductions available to Australian investment property owners if the property is used to produce rental income.

3. Property management fees by state

3.1 New South Wales (Sydney)

Management fees range from 5% to 12% of weekly rent. CBD and high-density areas typically sit at 5% to 8%, while regional areas trend higher. Letting fees are usually 1 to 2 weeks' rent, stretching to 4 weeks in regional NSW.

Sydney is the most competitive market for property managers in Australia. Inner-city and eastern suburbs properties attract lower percentage fees because weekly rents are high. A 5% fee on $800 per week ($40/week) earns the manager more than 10% on $400 per week in a regional town. If you own in Sydney, you should be paying towards the lower end of the range.

If you are considering short-term letting in Sydney, the management model is different. Sydney's STRA rules require registration and compliance with the 180-day cap, and short-let managers like Houst operate on a commission model rather than a percentage of weekly rent.

3.2 Queensland (Brisbane and Gold Coast)

Fees range from 7% to 12% of weekly rent, averaging around 9%. Managers often split their fee into a rent collection component and a management component. Make sure you are comparing the combined total, not just the management line. Letting fees are typically 1 to 2 weeks' rent.

Brisbane's short-let market is growing, particularly in inner-city areas and near the CBD. Brisbane's short-term rental rules are lighter than Sydney's, with no statewide day cap for hosts.

3.3 Victoria (Melbourne and Geelong)

Fees span 5% to 10% of rent collected. Inner-suburb fees average around 6%, and some providers advertise below 5%, though quality and responsiveness at that price point varies. The key question is not how low the fee is, but what is actually included.

For short-let owners in Victoria, Melbourne's short-term rental rules now include a 7.5% short-stay levy, which makes professional management and pricing optimisation more important than ever.

3.4 South Australia (Adelaide)

Management fees range from 9% to 15%, with metropolitan Adelaide averaging 9% to 11%. The market is smaller, with fewer managers competing, which keeps prices elevated. Additional charges for inspections and tradesperson coordination are more common here than in Sydney or Melbourne.

3.5 Western Australia (Perth)

Fees range from 8.5% to 11% of rent collected. The letting fee is notably higher than the east coast at 2 to 3 weeks' rent. Property Condition Reports, which are mandatory at the start and end of each tenancy, can add nearly $1,000 per year. Perth's short-term rental rules include a 90-day cap in some areas, so understanding the regulatory landscape matters before choosing between long-term and short-term management.

3.6 Australian Capital Territory (Canberra)

Metropolitan fees sit at 6% to 8%, with regional areas higher. Canberra's government and defence workforce creates stable, long-tenancy demand. Fees are relatively low in metropolitan areas, reflecting the reliability of the tenant base.

3.7 Tasmania (Hobart)

Fees range from 5% to 10%. Metropolitan Hobart trends towards the lower end, while regional Tasmania is higher. Hobart's growing tourism market means more owners are weighing up long-term letting against short-term options.

For a comparison of what platforms themselves charge on top of management fees, see our guide to Airbnb hosting fees in Australia.

4. What a good property manager should actually include

Not all management fees cover the same scope. At a minimum, your management fee should include:

• Rent collection and arrears follow-up with clear timelines for when they escalate
• Routine inspections (quarterly, with photo reports)
• Maintenance coordination (receiving requests, getting quotes, managing tradespeople)
• Tenant communication (queries, complaints, notices)
• Compliance (smoke alarms, pool safety, state-specific requirements)
• Financial reporting (monthly statements, end-of-year tax summaries)

If any of these are charged as extras on top of the management percentage, factor that into your true cost before comparing providers.

5. How short-let management fees compare

Traditional property management charges a percentage of weekly rent for long-term tenancies. Short-let management (Airbnb, Booking.com, Stayz) works differently.

Short-let managers typically charge a commission on revenue earned, not a flat percentage of a weekly rate. The commission is higher (often 15% to 25%) but covers a much broader scope: listing creation, professional photography, dynamic pricing, guest communication, cleaning coordination, linen, check-in/check-out, and platform management across multiple channels.

The trade-off: higher percentage, but higher gross revenue. A well-managed short-let in a strong market can earn 30% to 60% more than a long-term tenancy before management fees, which means the owner's net income is often higher despite the larger percentage.

Whether short-let management makes sense for your property depends on your location, local regulations, and how much demand exists for short stays. For a broader look at what holiday letting actually costs beyond management fees, see our guide to the costs of running a holiday let.

6. How to compare property managers (a practical checklist)

1. Get the total cost, not just the headline percentage. Ask for a complete fee schedule including letting fee, advertising, inspections, maintenance markup, lease renewal, and tribunal fees.
2. Confirm GST treatment. Is the quoted percentage inclusive or exclusive of GST?
3. Check the contract term and exit clause. Some managers lock you in for 12 months with a break fee. Others offer rolling monthly agreements.
4. Ask how they handle maintenance. Do they mark up tradesperson invoices? Do they have preferred suppliers? Can you nominate your own?
5. Look at their portfolio size. A manager with 300 properties per staff member will not give you the same attention as one with 100.
6. Read the management agreement in full. Every fee should be listed. If it is not in the agreement, it should not appear on your statement.

The Real Estate Institute also provides guidance on what to expect from management agreements.

FAQs

What is the average property management fee in Australia?

The national average sits around 7% to 8% of weekly rent for metropolitan properties, but this varies significantly by state. Sydney and Melbourne trend lower (5% to 8%), while Adelaide and regional areas trend higher (9% to 15%).

Can I negotiate property management fees?

Yes. Management fees are not fixed by regulation. If you own multiple properties or your property is high-value, you have leverage. Letting fees and lease renewal fees are the easiest to negotiate down or remove entirely.

Are property management fees tax deductible?

Yes. Management fees, letting fees, advertising costs, and most other property management expenses are deductible against your rental income. See our guide to tax deductions available to Australian investment property owners for the full list.

Is it worth paying more for a better property manager?

Usually, yes. A good manager reduces vacancy, handles maintenance before it escalates, and keeps tenants longer. The difference between a 6% manager who leaves your property empty for 3 weeks between tenants and an 8% manager who turns it in 5 days is far more than the 2% fee gap.

How do Houst's fees compare?

Houst operates on a commission model for short-let management, covering listing, pricing, guest management, cleaning, and compliance. The commission is a percentage of revenue earned, not a flat rate on weekly rent. The simplest way to compare is to see what your property could earn.