Table of Contents
If the rental market is good, you’re likely to make money as a landlord. Still, there are some costs you have to pay up front and on a regular basis that cut into your profits like the property manager costs from the property management agenciesof new tenants.
If you’re just starting out as a real estate investor, you might need to get used to the idea that you have to spend money to make money from investment properties, which is why there is a need to hire a property manager to get genuine prospective new tenants.
You need a good cash flow to cover yourself.As an investor, you want to make money in the future, but in the meantime, it’s like running a business with lease renewal fees and annual statements fees.
When you add up your mortgage, interest, and all other costs, there is definitely a shortfall as a property owner. So you need to make a budget for that month and make sure you have enough money when it comes to an inclusive property management.
What are the fees for managing a property?
Property management fees cover the cost of advertising your property and taking care of tenants while they live there by the real estate agents. It is also the agent’s commission for finding a new tenant for your property, which is how they make money.
Property management fees, which are also called real estate rental fees, are shown as a percentage of how much the property rents for each week. In all states, the average property management fees are 7.5%.
When the property gets renters, there is also a letting fee, which is usually listed as a certain number of weeks’ rent. On average, this costs 1.4 times the weekly rent in Australia.
How do property management fees in Sydney typically work, and what are the standard charges?
In Sydney , property management fees generally come in two main parts: a letting fee and an ongoing management fee. The letting fee is a one-off charge that’s usually equivalent to one to two weeks’ rent and is paid whenever a new tenant is secured for your property. This upfront amount covers finding the tenant, conducting inspections, and handling the lease paperwork.
After that, you’ll pay a management fee, which is typically charged as a percentage of your weekly rent. In metropolitan areas like Sydney’s CBD or Potts Point, this fee often sits at the lower end of the scale—commonly between 5% and 8% of the rent—mainly due to the sheer volume of available rental properties and the number of agencies competing for your business.
Keep in mind, factors such as the location of your property, the level of service you need, and even current market trends can all influence how much you’re ultimately charged. Major agencies operating in high-demand suburbs may offer slightly reduced rates compared to regional areas, but you’ll find the basic structure is quite consistent across the board.
What is the “average” rate of commission for property management?
The amount of commission varies from state to state and can be anywhere from 5% to 15% you expect to pay. How much you pay will depend on your property, the market in your area, and the services you choose. It’s also important to remember that you’ll have to pay GST on property management fees with the flat fee. Before you choose a property manager, check to make sure that the proposed fee includes GST.
A lot of property managers will charge extra fees on top of management fees, so it’s important to look at the small print when choosing a property manager so you can find any hidden costs from the property managers servicing additional costs.
If the fee is closer to 5%, you might only be paying for management fees, while a “all-inclusive” fee could cost you up to 15% of your weekly rental income. You can compare property managers based on their fees.
But don’t make the mistake of choosing a property manager purely based on the lowest fee. For example, in areas, an experienced agent might have local connections—say, with the nearby golf club—that help attract the right kind of tenant for your property. The services offered, local knowledge, and how they source tenants can make a big difference to your long-term returns.
The smartest approach is to compare property managers directly, not just on price but on the full range of services they offer. Look for transparency in their fee structure and ask exactly what is included to avoid any surprises down the track. This way, you’re more likely to find a manager who fits both your budget and your investment goals.
How do property management fees vary between different suburbs and regions within Sydney?
The cost of property management isn’t a one-size-fits-all situation across Sydney. Where your investment property sits on the map plays a big role in what you’ll pay. For example, in high-demand inner-city areas like Potts Pointor Surry Hills there’s no shortage of real estate agencies jostling for your business. This competition tends to keep management fees on the lower side.
Head out to suburbs further west, such as Penrith, or into more regional parts of Sydney, and you’ll notice the opposite trend. Fewer agents servicing a broader area, combined with generally lower property values, can push management fees up. It’s not uncommon for landlords in these areas to pay a higher percentage compared to their city counterparts.
Before locking in a manager, it’s worth doing your homework and comparing a few local agencies—considering not just the headline fee, but also the level of service, communication, and extra costs that might be hiding in the fine print. This way, you can make the most of your rental income regardless of your property’s location.
Insurance for landlords – new tenant
Landlord insurance is one way to reduce risks and protect your property and the money you make from it. Insurance has policies for landlords that can help protect their property and rental income.*
Depending on the coverage you choose, landlord insurance can help pay for damage to the building that wasn’t caused by the tenant.
It can also help protect your rental income if your new tenant damages your property or if they leave and don’t pay their rent. This may be more important. This can be a lifeline if your mortgage payments depend on a string of new tenants.
Costs of repairs and upkeep
You can expect regular repairs or small maintenance jobs quite frequently. This could include things like small leaks, broken drawers, or electrical problems. But you might not expect the bigger problems to put a dent in your wallet.
A gas furnace or air conditioner could cost up to $2000. If you own a unit, you will also be responsible for general property maintenance.
Costs of renting out a place
Getting a new tenant is another cost you might not have thought about. You not only have to pay your mortgage, but you also have to pay to list and market your property to potential buyers.
Some of the costs of looking for a tenant are:
Putting the property on the market to rent;
Photographs taken by pros;
Even if you only use it to turn on the lights during an inspection, you need power;
Your mortgage payments, taxes, strata fees, and other costs that come with owning a home.
Rates for home owners
If you’ve only ever been a renter, you might be surprised by the regular fees you’ll have to pay, like water rates and owner’s corporation levies if you live in an apartment building.
People don’t realise that there could be urgent repairs or big maintenance jobs in an owner’s corporation, like fixing the roof or fixing the hot water system for everyone. Again, you should know that this could happen at any time of the year.
Compare the fees for managing a property?
If you are looking for the right agent to help you rent out your property, our site is the perfect place to compare agents side-by-side on the things that matter most. Rental management fees are likely to be high on your list of important criteria.
But comparing the fees each agent charges to manage rental property is only helpful if you know what the average cost is in your state and area. The more you know about the market, the more likely it is that you will find an agent whose fees are in line with what you want to pay.
Benefits of Using Online Comparison Tools for Property Managers
Turning to online comparison platforms can make the whole process of selecting a property manager much smoother—and less mysterious. Instead of relying on word-of-mouth or endless Googling, you can see real information about local property managers side by side, all in one place.
Here’s how these handy tools level up your search:
- Save Time and Money: Skip the back-and-forth. Most comparison websites let you request quotes from several nearby agents at once, for free, without any pressure to commit.
- Transparent Information: You’ll find clear details about management fees, extra service charges, and even client feedback—so there are no nasty surprises hidden in the fine print.
- Impartial Results: Many of these platforms are independent, so you can compare services knowing the information isn’t skewed or sponsored by a single real estate group.
- Performance Insights: See reviews from other landlords, average vacancy times, and even past management track records before making a choice.
- Control and Flexibility: These tools put you in the driver’s seat, letting you shortlist agents that truly fit your budget and service expectations.
It’s all about making a decision based on facts, not just sales pitches—helping you manage your investment with confidence and, hopefully, a few less headaches.
What should you look for when comparing property managers?
When you start comparing property managers, don’t just focus on price—look at what services are actually included. Some agents might offer lower fees but charge extra for things like inspections, advertising, or arranging repairs. Others might bundle more services into their standard rate.
- Request quotes: Don’t be shy about asking for no-obligation quotes from a few local agents. This gives you a clearer idea of what’s out there and helps you set realistic expectations.
- Understand the inclusions: Check if the fee covers ongoing management, tenant screening, inspections, rent collection, and handling repairs.
- Read reviews and ask questions: Performance data and reviews from other property owners can give you valuable insights into how each agent works.
Stay in control
It’s important to remember that as the property owner, you’re in the driver’s seat. You’re free to compare and negotiate with as many agents as you like—there’s no pressure to sign up with someone you’re not comfortable with. Taking the time to do your homework now can make a big difference in your long-term rental returns.
How to Easily Compare Property Managers in Your Area
The process doesn’t have to be complicated. Using an online service, you can quickly request no-obligation quotes from property managers in your neighbourhood—all free of charge. Simply register your property online and start receiving side-by-side comparisons, making it easier to find a local expert who fits your budget and requirements. This hands-on approach gives you a clearer picture of what’s standard in your area, so you can move forward with confidence and get the helping hand you need in the property world.
