Property Management Fees – Melbourne (VIC) + Fee Calculator

If you’re renting out a property in Melbourne for the first time, it’s normal to feel unsure about costs. Property managers can save you time, reduce risk, and help you keep good tenants for longer, but you should know exactly what you’re paying and why. In Victoria, most management costs fall into two buckets: a one-off letting fee when a new tenant is found, and an ongoing management fee for day-to-day work like collecting rent, handling maintenance, and doing inspections. Fees are not fixed by law. They’re set by the market and fully negotiable, so it pays to compare offers and ask what’s included. We’ll walk you through typical fee ranges in Melbourne, how each fee works, what to check in your agreement, and how to use our calculator to estimate your annual costs.

Next Step: Before you lock in an agency, take a minute to compare Melbourne property managers side-by-side, it’s the easiest way to see who offers the best value and service.

Property Management Fees Calculator – Melbourne (VIC)

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 is in the field marked ‘other’. This can include such things as annual statement fees, routine inspection fees, advertising fees etc.

Bear in mind, you will also have other costs associated with insurance and possible repairs and maintenance to your property.

Property management fees don’t have to be expensive. View our deals with top-performing property management agencies here.

What Are the Main Property Management Fees in Melbourne?

In Victoria there are two core fees most landlords will encounter. First is the letting fee (sometimes called a leasing fee). This is charged when your agent finds a new tenant and prepares the lease. In Melbourne and across VIC, the letting fee is commonly equivalent to 1–4 weeks’ rent. Second is the management fee, which is a percentage of the weekly rent paid to the agent for day-to-day management. In Melbourne, a practical range is about 5–10% of rent, with metro areas usually sitting in the mid-range of that band. Regional properties can be a little higher because travel time and portfolio sizes differ. Because fees are negotiable, you can ask agents to tailor a package to your needs. 

What the Letting Fee Usually Covers

The letting fee typically includes advertising your property, conducting opens, tenant screening (ID, employment, rental history), lease preparation, and entry condition reporting. Some agencies bundle professional photography and premium listings into this fee; others treat them as add-ons, always check your quote for specifics. Victorian rules require clear disclosure around commissions, authorities and any rebates, so make sure your Managing Authority outlines all expected costs before you sign. 

What the Management Fee Usually Covers

The management fee pays for the ongoing work that protects your income and your property. This includes rent collection, arrears follow-up, routine inspections and reports, organising repairs and maintenance, issuing notices, dealing with VCAT matters, and tenant communication. If your authority includes “maintenance/repairs”, your agent must act professionally and in your best interests, this standard of conduct is set out in the Estate Agents (Professional Conduct) Regulations 2018. Ask how maintenance approvals work (e.g., spending limits, quotes, emergency procedures) so there are no surprises.

Are There Other Fees?

Yes, there can be extras. These might include advertising upgrades, professional photos, lease renewal fees, lease preparation, statement fees, tribunal representation, postage, or administration charges. These aren’t “bad”; they just need to be clear. In Victoria, authorities and commission disclosure rules exist to protect you, so insist on a full itemised schedule up front and keep it with your records. If an item seems vague, ask the agent to define the work, the trigger for the fee, and whether it’s capped. Below are some other fees to keep in mind:

Annual Management Fees – A summary amount that purely shows the management fee over the course of a year for your property. For a median Melbourne property collecting $420 a week, this would be somewhere between $1,100 to $2,300 annually.

Total Annual Fees – These are your total fees for an entire year’s worth of property management, including the management fees, letting fees and any other fees you may encounter. It assumes that the letting fee and other fees are incurred annually, but your tenants may stay for a number of years. This would save you from paying multiple letting fees or advertising costs.

What’s Regulated in Victoria and What Isn’t

When you hire a property manager in Victoria, it’s important to know what the government does and doesn’t regulate.
The actual fees that property managers charge like the letting fee or management fee are not fixed or capped by law. That means each agency can set their own prices based on their service level, location, and experience. However, agents are required by law to be transparent about what they charge and how they earn their money.

What is regulated are the rules that protect you and your tenant, including:

• Professional Conduct: Property managers must act honestly, fairly, and in your best interests. They can’t make decisions that benefit themselves at your expense. These rules are set under the Estate Agents (Professional Conduct) Regulations 2018.
• Trust Money Handling: Rent payments and bonds must be held in a trust account that’s properly audited and reported. This ensures your money is handled securely.
• Authorities and Disclosure: Before managing your property, your agent must give you a written Managing Authority that clearly lists all fees, commissions, and rebates they might receive. You should never sign until you fully understand this document.
• Maintenance and Repairs: Agents must handle repairs properly and communicate clearly about costs, quotes, and emergencies. They must also ensure the property meets the required standards.
• Record Keeping: Property managers are required to keep detailed records of transactions, inspections, maintenance, and communication.

If something goes wrong or feels unclear, you can always contact Consumer Affairs Victoria (CAV), they oversee property management laws and can guide landlords through complaints or questions.

In short, while the government doesn’t decide what agents can charge, it does make sure they follow strict conduct and honesty standards. This means when you compare property managers, don’t just look at the cheapest rate, also check how transparent, compliant, and professional they are.

Important Updates in Victoria Landlords Should Know (2024–2025)

In recent years, Victoria has made major changes to rental laws to create safer, fairer homes for tenants and these updates also affect landlords and property managers.
Even if these rules focus on renter protection, they directly influence how your agent must manage and maintain your property. Here are some of the key updates every Melbourne landlord should know:

Minimum Rental Standards

All rental properties in Victoria must meet certain standards for safety, comfort, and privacy. This includes things like secure locks, proper heating, and window coverings. If your property doesn’t meet these, your agent must work with you to fix them before a lease begins.

Mandatory Safety Checks

You must now complete gas, electrical, and smoke alarm checks at regular intervals. These need to be carried out by licensed professionals and documented properly. Most property managers organise these on your behalf but will pass on the cost.

Changes to Rent Increases and Bonds

Agents must give the correct amount of notice for any rent increase, and bond claims must be properly documented through the Residential Tenancies Bond Authority (RTBA). This helps prevent disputes and ensures fairness for both parties.

Prohibition of Certain Fees

Agents can no longer charge tenants certain “processing” or “administration” fees (like rent payment fees). While this doesn’t change what you pay directly, it affects how agencies structure their pricing, so always ask if this has changed your management package.

Clearer Record Keeping and Documentation

Agents must keep thorough records for inspections, maintenance, lease agreements, and safety reports. If they don’t, they can be held accountable under Consumer Affairs Victoria regulations.

All these updates are part of the Victorian Government’s ongoing rental reforms. Staying compliant not only protects your tenants but also protects you from potential fines or disputes.

When choosing a property manager, make sure to ask questions like:

• “How do you ensure my property meets current safety standards?”
• “Do you organise gas and electrical checks for me?”
• “How do you document maintenance and repairs?”
• “How do you manage bond lodgements and claims?”

A professional agent will be able to answer all of these clearly and show you proof of compliance.

For more details, you can check the government’s official information here:
Consumer Affairs Victoria – Renting reforms and landlord responsibilities.

Conclusion

Finding the right property manager in Melbourne doesn’t have to be confusing or stressful especially if it’s your first time. The key is to understand what each fee covers and what kind of service you’ll actually receive in return. A good property manager does more than just collect rent; they protect your investment, keep your tenants happy, and handle issues quickly so you don’t have to.

Before you decide, take a few minutes to compare local Melbourne agencies. Look beyond just the price, focus on how responsive they are, what’s included in their service, and how well they communicate. The best property managers save you money, time, and peace of mind in the long run.

Whether you’re renting out your first home or growing your investment portfolio, choosing the right agent is one of the smartest steps you can take. Start comparing now and feel confident knowing your property is being looked after properly.

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