Photo: iStock/sturti.

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.

If you have a Reader Question you’d like to see answered, we’d love to hear from you! Send an email to and include your state so we can give you the most relevant advice.

You might also like:

lisa kerr
Lisa Kerr
Principal at | | + posts

Lisa has a passion for customer service and property management having been in the real estate industry for over 15 years.