What they actually do
A property manager acts as your agent for the tenancy. In practice that means:
- Finding and screening tenants, setting the advertised rent and signing the lease.
- Collecting rent and chasing it when it's late.
- Routine inspections and condition reports at the start and end of each tenancy.
- Arranging repairs, within limits you set.
- Rent reviews, renewals, bond claims and tribunal hearings.
- Keeping you compliant with tenancy law, which now changes most years.
That last one matters more than it used to.
How fees are structured
Fees vary by state, city and agency, so compare the whole schedule rather than the headline number. The common parts are:
- Management fee: a percentage of rent collected, usually plus GST.
- Letting or leasing fee: charged when a new tenant is found, often expressed as weeks of rent.
- Lease renewal fee: some charge one, some don't.
- Other charges: advertising, inspection, admin or statement fees, and tribunal attendance.
Ask for the full fee schedule in writing and work out a total annual cost for a typical year and a bad one (a vacancy, a new lease, a tribunal hearing). The cheapest percentage is often not the cheapest manager. Our calculators let you see what a change in management cost does to your weekly holding cost.
Questions to ask before you sign
| Ask | Why it matters |
|---|---|
| How many properties does each manager look after? | A very large portfolio per person means slow replies and missed details. Ask who your actual contact is, not the business development manager who signs you up. |
| What happens on day one of arrears? Day seven? Day fourteen? | You want a written process with dates, not "we keep an eye on it". |
| How often do you inspect, and what's in the report? | Ask to see a real (redacted) inspection report. Photos, dated, with issues flagged. |
| What's your approval limit for repairs? | Agree a dollar limit for routine work and clear rules for urgent repairs. |
| Who goes to the tribunal, and how often have they won? | Experience at NCAT, VCAT, QCAT or SACAT is worth paying for. |
| What reporting do I get? | Monthly statements, an end-of-year summary your accountant can use, and an online portal. |
| How do you handle lease renewals and rent reviews? | Ask how they set the new rent and how far ahead they start. |
| How do you keep up with law changes? | Listen for specifics, not reassurance. |
The law has changed the job
Every state we're licensed in has rewritten its rental laws in the past few years. A manager who still works the old way can cost you money or put you on the wrong side of a tribunal. As at October 2026, the main shifts are:
- New South Wales: since 19 May 2025, owners need a valid reason to end any type of lease, and pet applications not answered within 21 days are approved automatically. Earlier changes had already limited rent increases to once a year.
- Victoria: minimum standards for rental homes have applied since March 2021. Since 25 November 2025, notices to vacate need a valid reason, including at the end of a fixed term, and some notice periods are now 90 days. Since 13 October 2026, rental providers must keep records showing the property meets minimum standards, and gas and electrical safety checks every two years apply to all rentals. New energy efficiency standards (heating, cooling, hot water, insulation) phase in from 1 March 2027.
- Queensland: tenancies can't be ended "without grounds" since 1 October 2022, minimum housing standards have applied to all tenancies since 1 September 2024, and since 1 May 2025 the minimum entry notice is 48 hours and a standard rental application form is required.
- South Australia: since 1 July 2024, a prescribed reason is needed to end a periodic tenancy or not renew a fixed term, the notice to end a fixed term rose from 28 to 60 days, tenants can apply to keep pets and rent bidding is banned.
The practical effect: the choice of tenant, the condition of the house and the quality of the paperwork now matter more, because ending a tenancy is harder. A solicitor or the state tenancy authority can tell you how a specific rule applies.
Red flags
- No written arrears process, or vague answers about it.
- Inspection reports without photos or dates.
- Pressure to sign a long management agreement with a hefty termination fee.
- Pushing their own tradespeople without quotes or disclosure of any commission.
- Not knowing the current law in their own state.
How we handle it
When we buy for a client, we help you compare local property managers against the checks above, and you choose. We're paid only by our clients. The checks above are part of our handover, and they sit alongside the rest of our due diligence checklist.
Sources
- NSW Government, "Minns Labor Government delivers on rental reform by ending no grounds evictions on 19 May 2025", March 2025
- Consumer Affairs Victoria, "New changes to the rental laws", accessed October 2026
- Consumer Affairs Victoria, "New minimum energy efficiency standards", accessed October 2026
- Residential Tenancies Authority (Qld), "Rental law changes", accessed October 2026
- Residential Tenancies Authority (Qld), "Ending a tenancy agreement for managing parties", accessed October 2026
- Consumer and Business Services SA, "Overhaul of SA's rental laws take effect 1 July 2024", June 2024
General information only. Nothing on this site takes into account your objectives, financial situation or needs, and it is not financial, credit, tax or legal advice. Past performance is not a reliable guide to future performance.