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Property Management Fees Explained

For property investors, understanding property management fees is essential to your investment decision-making. These fees are not just another expense. They represent a service that can significantly impact the value and performance of your property portfolio. 

Here’s a guide to understanding property management fees and ensuring you get value that aligns with your goals.

What Do Property Management Fees Cover?

Property management fees go beyond collecting rent. They include a wide range of services designed to ensure your investment runs smoothly.

Erin Delahunty, a property journalist for realestate.com.au, writes, “Good property management is about maximising the investment while minimising the risk, meaning a top-notch manager is worth their weight in gold.

Services typically included in property management fees are:

  • Advertising and showing your property to prospective tenants
  • Screening tenants thoroughly, including reference and rental history checks
  • Managing tenancy agreements and condition reports
  • Arranging repairs and maintenance with reputable tradespeople
  • Conducting routine inspections and providing detailed reports
  • Preparing financial records, such as income statements and annual summaries

These services provide peace of mind for landlords while ensuring tenants are well-supported throughout their tenancy.

What Can You Expect to Pay?

In New South Wales, property management fees range from five to eight percent of weekly rent in metropolitan areas and five to twelve percent in regional areas. It’s important to note that these fees are often tax-deductible, offering added value.

Property management agencies typically offer several pricing structures:

  1. Traditional percentage-based management and letting fees.
  2. All-inclusive service packages that cover a wider range of tasks.
  3. Flat-fee options for landlords who need specific services.

When evaluating fees, consider not only the price but also the services offered. A well-managed property can lead to shorter vacancy periods, higher tenant satisfaction, and fewer long-term maintenance issues.

How to Evaluate and Compare Fees

It’s natural to want to minimise costs, but choosing a property manager based on the lowest rate may not serve your investment in the long run. Instead of focusing solely on fees, ask potential property managers questions like:

  • How do you ensure my property attracts quality tenants?
  • What strategies do you use to adjust rent in line with market trends?
  • Can you advise on property improvements that would increase rental value?

These conversations provide insight into how a manager will handle your property and whether their approach aligns with your priorities.

At Mclaws Property, we emphasise tailoring our services to meet the individual needs of landlords. By focusing on efficient communication and detailed planning, we help clients achieve sustainable results from their investments.

Why Professional Management Matters

Hiring a professional property manager is an investment in your property’s long-term performance. Experienced managers bring local market knowledge, compliance expertise, and access to reliable service providers.

For example, a skilled property manager can advise on maintenance that will prevent costly repairs later or recommend upgrades that increase rental income. They also know how to price your property to attract tenants quickly, reducing the risk of extended vacancies.

Amy Sanderson, Head of Property Investment Management at LJ Hooker, highlights another benefit: “Property managers know what the market is looking for, so if landlords are considering renovations to generate a higher rental return, they can advise on what will generate the best return on investment.

With their support, landlords can focus on growing their portfolios while knowing their properties are in capable hands.

Why Choose Mclaws Property?

Mclaws Property offers personalised service with a strong focus on property management. Our team has in-depth knowledge of the Hurstville and surrounding areas, allowing us to provide accurate advice and effective solutions for landlords.

We prioritise proactive management, such as regular rent reviews and early reporting on maintenance needs. Our approach ensures that landlords maximise rental returns while keeping their properties in excellent condition.

If you value clear communication and a management team that treats your property like their own, Mclaws Property is ready to support your journey.

Let’s Talk About Your Investment

Whether you’re a first-time landlord or an experienced investor, having the right property manager makes a difference. Contact us to discuss your investment property and explore how Mclaws Property can help you achieve your goals.


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