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Home › Property Management › Property Management Fees › Sydney, NSW
If you own an investment property in Sydney, one of the first decisions you’ll make is whether to manage it yourself or hire a property manager. For many first-time landlords, the idea of managing tenants, repairs, rent collection, and legal paperwork can feel overwhelming. This is why most property owners in Sydney choose to work with a professional property manager.
But before you sign up, it’s important to understand exactly what property management fees are, how much they cost in Sydney, and what services they cover. These fees can vary widely between agencies, and some managers may charge extra for things you didn’t expect. If you’re not careful, hidden costs can quickly eat into your rental income.
This guide explains everything you need to know about property management fees in Sydney from letting fees and ongoing management fees to advertising, inspections, and tax deductions. We’ve also included a Property Management Fees Calculator so you can estimate your yearly costs with ease.
Key Takeaways Sydney’s typical fees: Letting fee is 1–2 weeks’ rent, and ongoing management fee is around 5–8% of weekly rent (higher in regional NSW). Hidden costs matter: Beyond the main fees, watch for advertising, inspections, lease renewals, EOFY statements, and tribunal representation. Tax deductible: Most property management costs are deductible rental expenses under the ATO, which reduces the real out-of-pocket impact. High rents magnify fees: With Sydney’s 2025 median weekly rent above $700, even a small percentage difference in management fees can mean hundreds of dollars each year. Rules protect landlords & tenants: NSW Fair Trading requires clear agency agreements, and NCAT provides a pathway for disputes, so you’re not without recourse if problems arise.
Key Takeaways
Below you will find our Property Management Fees Calculator. Input the individual costs to uncover the annual property management fees you can expect to incur. The costs listed below are not a comprehensive list.
Before appointing your Property Manager be sure to ask them for a full list of possible additional charges and allow for this in the field marked ‘Other Fees’. This can include such things as annual statement fees, routine inspection fees, advertising fees etc. If you need some further information or estimations for these fees, have a look below the calculator.
Bear in mind, you may also have other costs associated with insurance and possible repairs and maintenance to your property.
If you need a property manager, have a look at our deals page for top property managers in your area.
Property management fees are the amounts you pay an agent to run your rental as a business day-to-day; that usually means advertising the property, screening tenants, preparing the lease, collecting rent, chasing arrears, organising repairs, conducting routine inspections, and preparing statements. A strong manager also spots small maintenance issues before they snowball into bigger costs and knows tenancy law so you don’t accidentally breach rules.
In Sydney, the base package is the management fee (a percentage of rent) plus a letting fee whenever a new tenant is placed, with some agencies bundling extras and others charging line-by-line. NSW has clear consumer rules around property professionals and agency agreements, so you should always receive documentation that outlines what’s included and disclosed before you sign. If a dispute ever arises, the NSW Civil and Administrative Tribunal (NCAT) can hear residential tenancy matters, and there are published filing fees and service charges if representation is needed. When in doubt, ask for the full fee schedule and compare against what NSW Fair Trading says about agents, agreements and disclosure so you’re choosing with eyes wide open.
A letting fee is charged when your agent finds a new tenant; it covers advertising, opens, applications and checks, lease preparation, and the initial condition report. In Sydney and across NSW, a common range is 1–2 weeks’ rent, and you only pay it when a tenancy changes, so long-term tenants mean fewer letting charges over time. Because this fee happens only when you need a new tenant, it’s smart to weigh it against the agent’s vacancy performance, quick, quality placements reduce lost rent far more than shaving a couple of hundred dollars off the fee. Transparency matters here: ask the agent to break down what’s included in the letting fee (photography, ad upgrades, signboards, and leasing admin) so you’re not double-paying similar items elsewhere in the schedule. NSW consumer guidance makes it clear you should have written terms and disclosures before you agree, so insist on the full list. Your benchmark ranges and inclusions align with industry practice and with what we set out in WREA’s national fees explainer.
Your ongoing management fee is charged as a percentage of rent collected and covers daily operations such as rent collection, arrears management, repairs coordination, routine inspections, tenant communication and standard compliance admin. In Sydney metro, 5–8% is a common range; in regional NSW, fees can run higher (up to around 12%) due to travel distances and lower property density. As an example, a property at $700/week generates $36,400 in annual rent; at 6% the annual management fee would be $2,184 and that’s before adding any optional extras like lease renewals or EOFY statements.
Sydney remains the most expensive rental capital, so even small percentage differences can translate to hundreds of dollars a year; it’s wise to compare the inclusions per % rather than choosing the lowest number. Always ask whether inspections are included, how many per year, and whether lease renewals or rent reviews incur separate charges. Use our calculator to estimate your true annual spend based on your rent, fee % and extras.
Sydney is Australia’s most expensive rental capital, with the July 2025 quarterly review noting median dwelling rents around the high-$700s per week and unit rents in the mid-$700s; that higher base magnifies percentage-based fees. Even as national rental growth cooled through mid-2025 compared with the 2022–2023 surge, Sydney’s level remains elevated, which is why a careful fee comparison matters. Rising rents and affordability pressures are also shaping buyer sentiment, with many investors aware that buyers are fearful of Sydney’s housing market right now, a trend that can influence both rental demand and property management strategies. When negotiating, ask the agent to link their fee to measurable outcomes (vacancy days, arrears rate, routine inspection cadence) so the dollars you spend preserve your income. If you own multiple properties, most agencies will consider a portfolio discount; just be sure any discount doesn’t remove important inclusions like inspections.
Keep your comparison grounded in current market data so you’re negotiating from facts, not guesses. With changes to regulations in NSW and across the country, it’s also worth keeping an eye on the short-stay accommodation shake-up, as it may impact investor strategies and long-term rental demand in Sydney.
NSW requires specific warnings and disclosures in agency agreements, and you must receive the approved agency agreement guide before signing (you’ll also get a short cooling-off period). These documents set out fee terms, how commission is calculated, duration, and other key conditions. If something isn’t clear or feels unfair, ask for it to be clarified or amended before you commit; unfair contract terms should not appear in an agency agreement. NSW Fair Trading also provides consumer-facing help if you hit problems with an agent and need a structured complaint pathway.
Keep a PDF copy of everything you sign and file each update to the fee schedule sent by the agency. If the agreement renews automatically, diarise a review date to re-negotiate percent, inclusions and notice periods before rollover.
Yes. The ATO allows deductions for regular management fees/commissions, letting fees, and advertising for tenants when the property is genuinely available for rent.
Check for advertising bundles, routine inspection charges, lease renewal fees, EOFY statement fees, and any tribunal representation costs; ask for the complete schedule in writing.
Generally, it’s a percentage of rent collected, so if no rent is collected there’s no management fee. However, you may still pay advertising costs during vacancy. Check your agreement.
Some contracts include quarterly inspections; others charge per visit. Confirm the number, frequency and whether photos/reports are included before signing.
Yes, agencies may charge for preparation and attendance; NCAT also has published application and service fees from 1 July 2025.
NSW requires specific warnings/disclosures in agency agreements and that you receive the approved guide before signing; there’s also a short cooling-off period.
