Must-read for Melbourne landlords: Hidden fees that property management companies won't tell you about.
- 8 hours ago
- 4 min read
When looking for a property manager, many landlords will first look at:
"Management fee only 4.9%!" "Super low property management fee!"
But after actually starting the hosting service, I realized:
In addition to management fees, there are various hidden fees.
Some real estate agencies deliberately lower the "management fee" to attract landlords to sign contracts, and then make back the money through various additional fees.
In the long run, the actual expenditure may be several thousand Australian dollars higher than your original budget .
Today we'll discuss this in detail:
What are some of the most common hidden fees in Melbourne property management?
1. Letting Fee / Leasing Fee
This is one of the most common fees.
When a property manager helps you find a new tenant, they usually charge:
1–2 weeks' rent
Plus GST
For example:
If your house rent is:
$600/week
The intermediary charges:
2-week rental fee
The cost is then:
$1200 + GST
Total approximately $1320
Many real estate agencies attract landlords with low management fees, but their real profits mainly come from rental fees.
The landlord should ask clearly:
Is the rental fee equivalent to several weeks' rent?
Does it include GST?
Does it include advertising costs?
Does it include professional photography?
2. Advertising Fee
Many landlords assume that advertising is free.
In fact, many agencies charge extra fees.
include:
Realestate.com.au advertising upgrade
Domain Advertising
Professional photography
Floor plan
Video shooting
Social media promotion
In Melbourne, premium advertising packages can cost up to:
$150–$800+
Some agencies will even automatically select premium ads for you without asking for your consent first.
3. Routine Inspection Fee
Victorian law allows property managers to conduct regular property inspections.
However, many companies charge extra for each inspection.
Common charges:
$70–$150 each
If you have two checkups a year:
That's also a considerable expense.
Many low management fees actually do not include:
Routine Inspection
Inspection Report
Follow-up check
4. Lease Renewal Fee
One of the most surprising fees for many landlords: there's a charge if the tenant continues to live there.
Typical renewal fees:
300–$500
include:
Preparing a new contract
Negotiated rent increase
Communicating with tenants
Some agencies collect fees once a year.
Even if it's the same tenant.
5. Administration Fee
This is the fee that is most easily overlooked.
include:
Annual financial statements
send by post
Print
Trust Account Fees
Bank transfer fees
Statement Fee
The amount may not seem large on its own, but it can accumulate to a considerable sum over time.
6. Maintenance Coordination Fee
More and more property management companies are now charging this fee.
The payment method may be:
Percentage of repair cost
or fixed management fee
For example, repair costs:
$500
The agent will charge an extra fee:
10% management fee
You will then have to pay again:
$50
Many landlords are completely unaware of this fee, as it is usually hidden in the contract details.
The landlord must ask:
Are there any extra charges for repairs?
Do they receive kickbacks from the traders?
7. VCAT / Tribunal court appearance fees
If a rental dispute occurs
For example:
Tenant owes rent
Damaged house
eviction proceedings
The property manager will usually charge an extra fee if they go to VCAT on your behalf.
Costs may include:
$150–$500+
Even higher
include:
Prepare materials
Attend the hearing
Issue Notice
Many landlords assume this is included in the management fee. Actually, it usually isn't.
8. Check-in & check-out inspection fees
Some companies will charge an extra fee:
Entry Condition Report
Exit Inspection
Bond Claim
Fees may apply:
$100–$350+
However, in Victoria, the Condition Report is very important.
This is crucial evidence for any future bond disputes.
9. Hidden Termination Fee
Some agencies will include the following in the contract:
Early termination fee
Transfer of management fees
Continuing Management Fee
For example:
Even if you change the property management company, they may still continue to charge fees as long as the tenant was found by the original agency.
Landlords must read this:
Exclusive Period
Continuing Authority
Notice Period
10. The "Ultra-Low Management Fee" Trap
Many advertisements will say:
"Management fee is only 3.9%!"
But in reality, you also need to pay:
Rental fee
Inspection Fee
renewal fee
Advertising fees
Maintenance Fee
Administrative fees
In the end, the actual cost may be higher than:
6%–7% All-inclusive management
It's even more expensive.
Several questions landlords must ask before signing a contract
Regarding fees
What does the management fee include?
Does it include Routine Inspection?
Is there a fee for renewing the lease?
Are there administrative fees?
Regarding repairs
Is a maintenance fee charged?
Is there a commission charged on repairs?
Regarding leasing
How much is the rental fee?
Is advertising fee optional?
Regarding the termination of the contract
Is there a lock-in period?
Is there an early termination fee?
When choosing a property management company:
Don't just look at the "management fee" figure.
What really matters is:
✅ Is the pricing transparent? ✅ Are there any hidden fees? ✅ Is the service professional? ✅ Is communication timely? ✅ Does the landlord's interests are truly protected?
Often:
"The cheapest" property management
In the end, it turned out to be the most expensive.
Disclaimer
This article is for general informational purposes only and does not constitute any legal, financial, tax, or real estate investment advice. Property management fees vary depending on the company, scope of services, and contract terms. Landlords should carefully read the relevant terms before signing a property management agreement and seek independent professional advice based on their own circumstances.
