Property managers — what they actually handle

Advertising, photography, open inspections, application processing, reference and tenancy database checks, and recommending an applicant. A good manager is careful here, because almost every expensive tenancy problem starts with a rushed approval.

• Preparing the lease and lodging the bond with the state authority.
• Entry and exit condition reports with photographs.
• Collecting rent and following up arrears promptly, to a set process.
• Routine inspections and written reports during the tenancy.
• Lease renewals, notices and, if it comes to it, tribunal representation.

Coordinating tradespeople, handling after-hours emergencies, and keeping the property compliant with the tenancy laws in your state — smoke alarms, safety checks, and minimum standards where they apply. Requirements differ by state and change from time to time, which is a decent argument for using someone local who tracks them.

Monthly statements, disbursements to your account, paying approved outgoings on your behalf, and an end-of-financial-year summary your accountant will thank you for. They'll also advise on rent reviews at renewal, based on what's actually leasing nearby.

Management fees are often somewhere around 5–9 per cent of rent collected, and vary a good deal by state and by city versus regional area. On top of that there are commonly a letting fee when a new tenant is placed, a lease renewal fee, advertising costs, and a small monthly administration or statement fee.

Those ranges are indicative only — ask two or three local agencies for their actual schedule of fees in writing, and put the real figure into the holding costs estimator.

You can manage a property yourself, and some owners do it well. But the cost isn't zero: it's your evenings, the arrears conversation, the 10pm hot water call, keeping up with changing tenancy law, and the risk of getting a notice period or bond claim wrong. Many owners also find it harder to be firm with someone they've met.

• Full schedule of fees, including letting, renewal, advertising and admin.
• How many properties each manager handles, and who my contact will be.
• Arrears process — what happens on day one, day three, day seven.
• Maintenance spend I approve versus what they can authorise.
• Inspection frequency and whether I get photos.
• Notice period to end the agreement if it isn't working.

More of these in the full question list, and step eight of the checklist.

General information only — not financial, credit, tax or legal advice. We generate interest and pass your enquiry to one independent property specialist. Free, no obligation.