The quoted management fee — usually 7–10% of weekly rent — is just the beginning. Most landlords don't realise how much they're actually paying for property management until they sit down and add it all up.
For a $550/week property in Sydney, you might be quoted a 8.5% management fee. That's $48.95/week — $2,545/year. Sounds manageable. But by the time you add letting fees, lease renewals, inspections, and maintenance coordination, the real number is often closer to $5,000–$7,000 per year.
Here's every fee to know about, what's standard, and what to watch for.
The Management Fee
The headline rate. Charged as a percentage of weekly rent, collected on every rent payment.
| City | Typical range | On $550/week rent |
|---|---|---|
| Sydney | 7% – 10% | $2,002 – $2,860/year |
| Melbourne | 5.5% – 8.5% | $1,573 – $2,431/year |
| Brisbane | 8% – 12% | $2,288 – $3,432/year |
| Perth | 8.5% – 11% | $2,431 – $3,146/year |
| Adelaide | 7% – 9.5% | $2,002 – $2,717/year |
GST is usually added on top of the management fee — most agents quote ex-GST, so add 10% to get the true cost.
The Letting Fee (Vacancy Charge)
Charged every time a new tenant is placed. This is often the biggest single cost in property management — and it's one you only feel when you're already losing rent to a vacancy.
Standard rate: 1–3 weeks' rent. Some agents charge a flat "letting fee" of 2 weeks' rent plus a "marketing fee" on top.
On a $550/week property: $550 – $1,650 per tenant change. If a tenant leaves after 12 months and you have a new tenant placed, that's $1,100–$1,650 gone immediately.
Lease Renewal Fee
A charge for renewing an existing tenant's lease. Many landlords are surprised by this — the agent did nothing new, the tenant stayed, yet there's a fee.
Standard rate: $50 – $300 per renewal, or up to 1 week's rent. If you have a good long-term tenant and renew every 12 months, you might be paying $200–$500 each time.
Routine Inspection Fee
Most agents charge per inspection, usually $55 – $110 per visit.
With 4 inspections per year permitted in NSW, that's $220 – $440/year just for inspections. Some agents bundle inspections into their management fee — clarify this upfront.
Maintenance Coordination Markup
This is the fee most landlords don't know about. When a tradesperson does work on your property, many property managers add a 5–15% coordination markup to the invoice.
So a $400 plumbing job becomes $440–$460 by the time it hits your ledger. Multiplied across a year of routine maintenance, this adds up to hundreds of dollars.
Ask your agent directly: "Do you charge a coordination fee or markup on maintenance invoices?" Many won't volunteer this information.
Other Fees to Watch For
- Administration fee: $5–$15/month for statement generation or postage
- EOFY financial statement: $50–$150 for your annual tax statement
- Tribunal attendance: $150–$300 per hour if the agent attends NCAT on your behalf
- Key cutting / locksmith call-outs: Often passed through with a service fee
- Condition report fee: Some agents charge $100–$200 to complete the entry report
- Early termination fee: If you switch agents, some charge a fee of 1–3 months' management
The Full Cost Picture
Here's what a realistic annual cost looks like for a $550/week property in Sydney managed by an agent charging 8.5% + GST:
| Fee | Calculation | Annual cost |
|---|---|---|
| Management fee (8.5% + GST) | $550 × 52 × 9.35% | $2,675 |
| Letting fee (new tenant, 2 weeks) | $550 × 2 | $1,100 |
| Lease renewal | 1 renewal/year | $200 |
| Routine inspections (4 × $80) | 4 per year | $320 |
| Maintenance markup (~10%) | On $1,200 of annual maintenance | $120 |
| Administration / statements | $10/month + EOFY statement | $220 |
| Total annual cost | ~$4,635 |
That's around 16% of gross annual rent — more than double the headline management rate.
Is a Property Manager Worth It?
Sometimes, yes. A good property manager genuinely reduces stress, especially if you live far from your investment, work long hours, or manage multiple properties.
But the calculus has changed. AI tools can now handle the repetitive work — tenant communication, maintenance triage, compliance tracking — that used to require a human agent. And they don't charge letting fees, markup maintenance, or bill you for routine inspections.
Traditional property manager
HoldKey (first property)
For landlords with 2+ properties, the savings compound quickly. Two properties: first property free, second at $45/month ($540/year) — versus $4,600–$9,000 in management fees.
Questions to Ask Before Signing With an Agent
- What is your management fee, and does that include GST?
- What is your letting fee? Is there a separate marketing fee?
- Do you charge a lease renewal fee?
- Do you mark up maintenance invoices?
- What do routine inspections cost?
- Are there any monthly administration fees?
- What is your exit clause if I want to move to a different manager?
Get everything in writing. Many fee disputes with agents come down to verbal understandings that weren't captured in the management agreement.