Choosing a property manager is one of the most consequential decisions an Australian property investor makes — and one of the most under-researched. Most investors spend weeks comparing interest rates and minutes comparing property managers. That’s backwards. A poor property manager can cost you 10-20x more per year than the difference between a good and average interest rate: through extended vacancy, poor tenant selection, missed maintenance, incorrectly handled lease disputes, and legal exposure from non-compliance with tenancy law. This guide gives you the questions to ask, the red flags to watch for, and the fee structures to understand before signing a management agreement.
What a Property Manager Actually Does
A property manager handles: marketing the property and tenant screening (references, rental history, employment verification, tenancy database checks); lease preparation and execution; rent collection and arrears management; routine and condition inspections; coordinating maintenance and repairs with tradespeople; handling tenant requests and disputes; complying with state tenancy laws (which vary significantly between states and change regularly); lease renewals and rent reviews; and managing vacancies including the outgoing and ingoing process. They are your legal representative for the tenancy agreement and your first line of defence against everything that goes wrong at your property. The quality of how they do all of this varies enormously between agencies.
Property Management Fees — What’s Typical in Australia 2026
The headline management fee (7-12%) is not the full cost of management. Some agencies with low headline rates charge separately for every other service — inspections, lease renewals, maintenance coordination, advertising, tribunal appearances. Always ask for a full fee schedule and calculate your total annual cost, not just the management fee percentage. A 10% all-inclusive manager can be cheaper than an 8% manager with add-on charges.
The 10 Questions to Ask Every Property Manager
1. How many properties does each property manager in your team manage? Industry best practice is 100-150 properties per PM. Above 150-200, service quality typically degrades — your property becomes a number. 2. What is your vacancy rate? Good property managers know this. Evasion or “we’ve been busy” is a red flag. 3. How do you handle rent arrears? Get their specific process: when do they contact the tenant, when do they issue notice, when do they go to tribunal? 4. How many routine inspections do you do per year? Standard is 3-4 per year in most states. Fewer means your property could be trashed before they notice. 5. What is your average time to fill a vacancy? Benchmark: 2-3 weeks in a normal market. Significantly longer suggests weak marketing or poor tenant screening. 6. What property management software do you use? Modern PMs use platforms like PropertyMe, Rockend, or Console — these give owners real-time access to statements, inspection reports, and maintenance requests. Avoid agencies still on spreadsheets. 7. Who specifically will manage my property? Get the name. Check that person’s portfolio size, experience, and whether they’re the one who’ll be doing inspections and responding to tenants. 8. What is your maintenance authorisation limit? PMs should get your approval for anything above $300-$500. Find out what they can spend without asking. 9. How do you conduct tenant screening? They should be checking National Tenancy Database (NTD) or equivalent, verifying employment with payslips, and calling previous landlords — not just taking a form at face value. 10. What are all the fees I’ll pay? Ask for the full fee schedule in writing. Every charge.
Red Flags: Walk Away From Any Manager Who…
Cannot tell you their current vacancy rate. Has a portfolio above 200 properties per PM with no clear account structure. Charges a maintenance coordination surcharge on top of tradespeople invoices. Cannot name the specific person who will manage your property. Discourages you from doing your own drive-by inspections. Has consistently negative Google reviews that mention unresponsive communication, neglected maintenance, or poor tenant screening. Is the selling agent rather than a dedicated property management agency — sales-focused offices often treat property management as a secondary business and staff it accordingly.
Your property manager is working unsupervised with your most valuable asset. The 7-12% management fee is the most important money you’ll spend — the cost of a poor manager isn’t the fee, it’s everything else. Interview properly, ask hard questions, and switch if the service doesn’t match what was promised.
One Property at a time
Brick by Brick 🧱
General Advice Warning: This article is general in nature and does not constitute personal financial advice. Please consult a licensed financial adviser before making investment decisions.
