Property managers oversee the day-to-day operations of rental properties on behalf of owners. As of December 2025, their fees are typically calculated as a percentage of the weekly rent collected, or a flat monthly fee, and cover tasks like tenant selection, rent collection, maintenance coordination, and routine inspections.
Currently in Melbourne, the most common fee structure is between 1.8% and 2.5% plus GST of the weekly rent. However, some agencies, including those servicing the Eastern Suburbs, offer tiered pricing – a higher percentage for properties with lower weekly rents, decreasing as the rent increases. Flat monthly fees, ranging from $250 to $400 plus GST, are also becoming more prevalent, particularly for higher-value properties. It’s important to realise that these management fees don’t usually include costs for things like routine maintenance (plumbing, gardening) or significant repairs, which are billed separately to the property owner. Fletchers’ ‘The Fletchers Way’ emphasises transparent fee structures and detailed reporting, ensuring clients understand all associated costs. In 2026, we anticipate continued competition in the property management sector, potentially influencing fee structures.
Understanding these charges is a key part of maximising your investment returns when owning a rental property in Melbourne.