Managing your own rental property can be rewarding, but it also comes with responsibilities, time commitments, and legal obligations. For many property owners, hiring a professional property manager makes more sense:
Why?
- Frees up your time
- Reduces your stress
- Ability to do due diligence on your potential tenant
- Ability to arrange for property repairs quickly as most have a preferred service with electricians, plumbers, builders etc
- And most importantly your property manager will protect your investment
The below explains the role of a property manager, typical costs and contract terms, who benefits from their services, and how to find the best one for you and your property.
What Does a Property Manager actually do?
A property manager handles the day-to-day running of your rental property on your behalf. Their role is to act as the intermediary between you (the landlord) and your tenants, ensuring the property performs well as an investment and meets all legal standards. Their tasks typically include:
Tenant-related Services
- Marketing and Tenant sourcing:Advertising your property to find suitable tenants.
- Tenant screening:Checking references, rental history and suitability.
- Lease preparation:Drawing up and renewing tenancy agreements.
- Rent collection and arrears management:Ensuring rent is collected on time.
- Communication:Acting as first contact for tenants on queries or issues.
Property and Maintenance Management
- Routine inspections:Regularly checking the condition of the property.
- Repairs and maintenance coordination:Organising tradespeople and overseeing work.
- Preventative care:Spotting issues early to avoid costly repairs later.
Financial & Administrative Work
- Financial reporting:Providing statements for your records and for tax time.
- Paying outgoings:Handling council rates, water charges or body corporate levies if required.
- Compliance:Ensuring leases and property conditions meet local government tenancy laws.
A good property manager takes much of the heavy lifting off your shoulders, especially useful if you own multiple properties or don’t live near your investment.
Typical Costs of Property Management
Property managers charge for their services, and across Australia these costs vary depending on location, services included, and how competitive the market is.
Ongoing Management Fees
- Usually a percentage of the weekly rent — often 7% to 12% of the rent collected.
Letting or Lease Placement Fees
- Charged when a property manager finds a new tenant — typically 1–2 weeks’ rent.
Additional Fees You Might See
Depending on the agency, extra charges may apply for:
- Advertising/marketing your rental when looking for a new tenant
- Lease renewal administration
- Annual financial statements or reporting
- Tribunal attendance or legal assistance if disputes arise
- Termination fees if you end a contract early
Your property manager should provide you with a full written proposal with all their costs and expenses outlined before you engage with them.
Contract Terms & Lengths
There’s no one mandated contract length for property management but you could expect at least 12 months.
Termination Clauses
- If you want to switch managers before the initial term expires, some contracts include termination fees or notice requirements.
- Always check fine print around ending the agreement, if you are unsure engage legal assistance.
Written Agreements
Regulations require that all fees and terms are agreed in writing before services begin. Always read contracts carefully and ask for clarification where needed.
Who Uses Property Managers?
Property managers are valuable for a range of property owner including:
✔ Investors
If you own one or more rental properties and want:
✔ Out-of-Town or Interstate Owners
Property managers are especially helpful if you don’t live near your property, they handle issues locally and professionally.
✔ Busy Professionals or Landlords
Managing properties yourself can take hours per week; many landlords prefer to free up their time.
How to Find the Best Property Manager in Your Area
Choosing the right property manager can make a major difference to your investment performance.
Here are some tips to help you find one:
- Look for Local Expertise
Choose an property manager who is familiar with your specific suburb or region — local market knowledge helps with realistic rental valuations and tenant demand.
- Compare Fees and Inclusions
Higher fees aren’t always better, but very low fees often mean limited services. Compare like-for-like fee structures and what’s included before choosing.
- Check Reputation and Reviews
Ask for referrals from other landlords, check online reviews, and ensure the property manager has a good track record.
- Understand Their Services
Ask about:
- Tenant screening process
- Communication frequency
- Maintenance handling and preferred tradespeople
- Reporting and inspection schedules
- Meet Your Manager
Where possible meet your manager face to face. Ensure you will have a dedicated contact person and open lines of communication.
- Technology and Reporting
Modern managers often provide online portals for owners to track rental income, maintenance requests, and financial documents conveniently.
Final Thoughts
Using a professional property manager can take the stress out of owning rental property, particularly if you’re juggling work, multiple properties, or live far from your investment. They handle complicated tasks, protect your legal compliance, and help you get the most out of your rental income.
While fees vary, the value often outweighs the cost when you consider time saved, tenant stability, and fewer compliance headaches. Just be sure to compare carefully, understand the contract terms, and choose a property manager with the right experience for your unique needs.