The management fee
The management fee is the core ongoing charge — a percentage of the weekly rent collected, paid to the agency for day-to-day property management. In NSW, typical rates are:
- 5–6% — common for high-volume portfolio managers, often franchise offices
- 7–8% — standard for most mid-size Inner West agencies
- 8–10% — boutique or high-service agencies with lower property-to-manager ratios
On an $800/week property, the difference between 6% and 9% is about $25 per week, or roughly $1,300 per year. That gap is often worth paying if the higher-fee agency achieves lower vacancy, better rent increases, and fewer maintenance surprises.
The key question
Don't ask "what is your management fee?" Ask "what does your management fee include — and what doesn't it include?" The answer tells you everything about how you'll be billed over the life of the management.
Common fees explained
| Fee | Typical range | Status |
|---|---|---|
| Management fee Ongoing % of rent collected | 5–10% of rent | Normal |
| Letting fee Charged when a new tenant is placed | 1–2 weeks rent | Normal |
| Lease renewal fee Charged when an existing lease is renewed | $50–$200 or 0.5–1 week rent | Watch closely |
| Routine inspection fee Per inspection beyond the included number | $50–$120 per inspection | Watch closely |
| Administration fee Monthly admin, postage, printing etc. | $5–$20/month | Watch closely |
| Maintenance markup Surcharge on tradespeople invoices | 5–15% markup | Red flag if undisclosed |
| NCAT / tribunal fee Attending tribunal on your behalf | $150–$400/appearance | Normal if disclosed |
| End of lease inspection | $100–$200 | Watch closely |
| Statement fee Monthly or annual financial statements | $0–$15/month | Red flag if charged for basic statements |
Calculating the true annual cost
To compare two agencies fairly, add up what you'd expect to pay across a full year. For an $800/week Inner West property with one lease renewal and four routine inspections:
- Management fee at 7%: $2,912/year
- Letting fee (assume stable tenancy, so zero): $0
- Lease renewal fee: $150
- Routine inspections (4 x $80): $320
- Administration fee ($15/month): $180
- Total: approximately $3,562/year
Compare this with an agency charging 9% but with no add-on fees: $3,744/year. The headline fee was higher, but the gap is only $182 — easily recovered by a single rent increase or one fewer vacancy week.
Red flags to watch for
- Undisclosed maintenance markups. Some agencies add 10–15% to every tradesperson invoice without telling you. Ask directly: "Do you charge a markup on maintenance invoices?"
- Charging for routine statements. Monthly rent statements and annual financial summaries should be included as standard. Any agency charging extra for basic reporting is padding fees.
- Vague "sundry" or "disbursement" line items. Every charge should be itemised and disclosed upfront in the management agreement.
- Letting fees on renewals. A letting fee is reasonable when a new tenant is found. Charging a full letting fee simply to renew an existing tenant is unusual and worth questioning.
The right property manager is worth more than they cost. If you'd like help finding a transparent, experienced manager in Sydney's Inner West, we can introduce you to a specialist — at no cost to you.