Property Management Services — What to Expect & What It Costs

Ongoing management is charged as a percentage of monthly rent collected: 4.90% + GST for a single occupancy, 6.90% + GST for a dual occupancy such as a house plus granny flat, and a higher rate again for multi-tenancy. The letting fee when a new tenant is placed is one week's rent, or two weeks' rent where renovation supervision is included.

Marketing costs are a realestate.com.au Premier listing at $217 + GST and a "Leased" board sign at $163 + GST. If a matter goes to VCAT, a debt recovery application is $170 + GST, an eviction application $250 + GST, a Warrant of Possession $150 + GST, and tribunal attendance $200 + GST.

The industry standard is one property manager handling 170+ properties, at which point response times slow, maintenance is delayed and landlords feel ignored. Our ratio is one manager to a maximum of 50 properties, with a 30-person support team behind them split across four specialised departments. Fewer vacancies and higher tenant quality are the direct outcome of that ratio.

We use a four-point screening system. Rent must be no more than 20% to 30% of the tenant's income and primary Centrelink income is not accepted; a credit check scans TICA and Equifax for previous defaults or tribunal history; employment and rental history are verified; and references are checked. The standard lease is 12 months with a rent review 2 to 3 months before expiry.

Not without a documented reason — Victorian law does not permit a blanket refusal. What can be required is that tenants with pets cover professional steam cleaning at exit and any damage beyond normal wear and tear. That is the practical position we manage to.

The compliance calendar is the usual gap: gas and electrical safety checks every two years, an annual smoke alarm inspection, and the Victorian Minimum Rental Standards that must be met before a property can be let. Our Reno Team handles pre-tenancy preparation to those standards, which is separate work from leasing and from rent collection.

Management fees, letting fees and marketing costs on an investment property are deductible in the year they are incurred, along with the safety compliance checks. PremiumRea is not a registered tax agent — the treatment on your own return is a question for your accountant.

A house plus granny flat is a dual occupancy and attracts 6.90% + GST of rent collected, rather than the 4.90% + GST single-occupancy rate. The higher rate reflects two tenancies, two sets of inspections and two leases to administer on the one title.