Property Management Fees Victoria: The Real Cost of Professional Management in 2025

Melbourne’s rental market keeps evolving, and so do the costs of having an expert handle your investment. Below we break down every fee line-item, bust myths, and show how to protect your yield.

TL;DR – Quick Facts for Busy Investors

Standard management commission in Victoria: 5–8 % of weekly rent plus GST.
Leasing fees range from one to two weeks’ rent depending on vacancy rates.
Average property management fees in Victoria are lower in regional towns (4–6 %) and higher in premium CBD postcodes (7–9 %).
Budget for compliance extras: smoke alarm servicing, safety checks and VCAT representation.
Choosing the cheapest agent can cost more in lost rent and higher vacancy.

Why Understanding Fees Matters More Than Ever

With yields tightening and interest rates fluctuating, every basis point counts. Property Management Fees Victoria investors pay are not simply a line on a spreadsheet—they are the price of preserving asset value, tenant satisfaction and steady cash flow.

Core Management Fee Explained

The core fee—sometimes called the ongoing management commission—covers the day-to-day running of your rental. In most Melbourne suburbs that sits around 6 %, slightly above the national average of 5.8 %. Inner-city apartments and prestige houses may attract up to 8 % due to stricter compliance and tenant turnover.

What’s included? Rent collection, arrears follow-up, routine inspections, maintenance co-ordination, monthly statements and end-of-year financial summaries.
What’s not? Advertising, leasing, court appearances and major project management are usually itemised separately.

Leasing Fees: One-Off but Impactful

When your property becomes vacant, the agency will charge a leasing fee—commonly one week’s rent (plus GST) but up to two weeks in competitive pockets such as Southbank or St Kilda. This covers professional photography, listings on realestate.com.au, open-for-inspections and processing applications.

Example – Two-Bedroom Apartment in Brunswick

Weekly rent: $600. Leasing fee at 1.5 weeks = $900 + GST. With an average 24-month tenancy, that equates to just $37.50 per month—well worth securing a quality tenant quickly.

Administration & Statement Fees

Many agencies now bundle statements into the core commission, but some still charge $3–$8 per month. It seems minor, yet over a decade that’s $960 on a single property. Always ask if these charges are negotiable or can be waived for portfolio clients.

Advertising and Marketing Costs

Expect $150–$400 for standard online listings, plus optional extras:

Highlight upgrade on realestate.com.au: $100–$200
Professional photography set: $150–$220
Virtual tours/floorplans: $120–$180

While tempting to cut corners, properties with quality media lease 33 % faster on average, reducing vacancy loss which dwarfs the up-front spend.

Inspection & Routine Maintenance Charges

Routine inspections are included, but if you request additional checks, agencies may bill $60–$90 each. Similarly, arranging complex repairs—think bathroom renovations—can trigger a project-management surcharge of 5–10 % of the contractor invoice.

Compliance: The Hidden Costs of Property Management in Victoria

Since 2021, new Residential Tenancies Act amendments mandate safety checks:

Smoke alarm service – annually: $99–$139
Gas safety check – every 2 years: $220–$350
Electrical safety check – every 2 years: $220–$350

Non-compliance fines exceed $10,000, so cutting corners here is false economy.

VCAT Representation Fees

If a dispute escalates, agents usually charge $150–$350 per hour for preparation and attendance. A quality manager minimises this risk by thorough tenant screening and proactive communication.

Cost of Professional Property Management Victoria vs DIY

Time – managing a single property averages 4–6 hours per month.
Expertise – misinterpreting legislation can invite penalties.
Network savings – agencies negotiate bulk-rate trades, often 10–15 % cheaper than retail.
Stress – late-night emergency calls become the manager’s problem, not yours.

When you factor in tax deductibility, the professional route often delivers higher net returns than self-management.

Fee Calculator: Estimate Your Outgoings

Use the formula below or download Ham Kerr’s free spreadsheet.

(Weekly Rent × 52) × Management Rate = Annual Core Fee
+ Leasing Fee (weeks of rent × rent)
+ Compliance Services
+ Advertising/Marketing
= Total Annual Cost

Worked Example – House in Glen Waverley

Rent: $750 pw, Commission: 6.5 %, Leasing: 1 week

Core: $750 × 52 × 0.065 = $2,535
Leasing: $750
Compliance (year 1): $668
Marketing upgrade: $350
Total: $4,303 (roughly 11 % of gross rent)

Vacancy-free management can save more than it costs by keeping rent flowing.

Negotiating Your Agreement

Victorian law allows every fee—except government charges—to be negotiated. Tips:

Bundle services for a sliding-scale rate (e.g., 6 % for first property, 5 % for additional).
Ask for performance clauses: reduced commission if vacancy exceeds 3 weeks.
Review annually; markets change and so should terms.

Remember: the cheapest quote is meaningless if service levels drop and tenants churn.

Victoria Property Management Fees Explained by Market Segment

CBD & Inner North: 6.5–8 %
Middle-Ring Suburbs: 5.5–7 %
Outer Growth Corridors: 5–6 %
Regional Cities (Geelong, Ballarat): 4.5–6 %

Supply, demand and property complexity shape these bands.

How Ham Kerr Keeps Your Costs in Check

Our Melbourne team leverages smart tech, local trades and stringent tenant vetting to reduce arrears to below 0.5 %. The result is consistent income that offsets management fees many times over.

Frequently Asked Questions

How much do property managers charge Victoria wide in 2025?

Most charge 5–8 % of weekly rent for ongoing management, plus one week’s rent for leasing. Premium or furnished properties might attract slightly higher rates.

What are the hidden costs of property management in Victoria?

Compliance safety checks, VCAT appearances, and additional inspection requests are the main extras investors overlook. Always ask for an itemised schedule before signing.

Are average property management fees in Victoria negotiable?

Yes. Aside from government-fixed charges, every fee is open to negotiation. Portfolio landlords and long-term clients often secure discounted rates or capped leasing fees.

Ready to protect your rental income and keep expenses transparent? Contact Ham Kerr’s Melbourne team today for a bespoke fee proposal.

Author – Arshdeep Singh

Email – arsh@aivo.com.au

Property Management Fees Victoria: The Real Cost of Professional Management in 2025