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Reader Question

“Is there a standard way that management fees are deducted?” (Owner, WA)

Understanding how management fees are deducted

We asked Lisa Kerr, Principal at Ray White South Perth for her advice:

“Management fees are calculated on the gross income collected for the property,” Lisa said.

“These fees are deducted from the monies when end-of-month payments are actioned, or when a mid-month payout is requested).”

For example, if $350 monies is collected with a management fee of 9.35%, $32.72 will show on your statement as the management fee collected for that amount of money.

“Some agents may only charge this fee on rent,” Lisa said.

“Other agents, however, will charge on gross collections, which includes all monies into their trust account.”

What property management fees cover

Every property management agency may charge different management fees for their services. Do your research to find the best qualified property management agency to look after your property. Understand what the costs are that are associated with engaging an agency to manage your property. A good property management agency will help you understand more about property management fees and how their services can provide you with the best outcome for your property.

There are many types of property management fees including commissions on rent, letting fees and administration fees, as well as other maintenance and repair fees. This will vary by agency – be sure to ask the question if you’re unsure.

Have a burning question you’d like answered? The Rent.com.au Community is our Facebook group for renters, agents and landlords.

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Lisa Kerr
Lisa Kerr
Former Owner/Licensee at Ray White South Perth | [email protected]

Lisa Kerr was the Owner/Licensee of Ray White South Perth in Western Australia between 2015 and 2020. After completing a Certificate IV in Psychotherapy and Psychoanalysis, Lisa moved into property management. She worked with Access Property Management and John Hayes and Son before moving into a corporate role at Ray White. She retired in 2020.

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