If you’re a real estate investor with an expanding portfolio, a commercial property management company is an excellent choice. But what do commercial property management fees in Australia cost?

Property management services differ from state to state, but such experts typically help investors maintain their property and rental leases.

As per research, commercial property management fees can range anywhere between 4% to 7% of your rental income, but this varies from firm to firm.

Below, we outline the types and costs of services you can expect from a commercial property management company in Australia.


What is Average Commercial Property Management Fees?

In Australia, the average commercial property management fee depends on several factors, including the location, size, and condition of the property. Additionally, you should include the average property management rates of that area in your total cost.

A property manager’s fees also cover sourcing quality tenants and managing all tasks related to your lease. Short-term rentals and seasonal charges may also incur higher fees, in some cases GST is also applicable on the management fee structure.

Location has a huge impact on your property management fees and is lower in urban areas compared to regional states. For instance, property management agencies in Sydney charge a 5.5% fee, whilst those in Perth reserve an average letting fee of 8%.

Get A Rental Property Appraisal

Maximise the potential of your property investment

How Much Does Commercial Property Management Cost?

The general fee structure for an experienced commercial property manager will depend on how many properties you’re leasing within a financial year.

Average property management fees also include inspecting a property, calculating gross weekly rental, and providing property condition reports.

A reliable commercial property management company also provides personalized service, such as a tenancy database check or emergency repairs.

Here’s a closer look at individual fees.

Letting Fee

Here the property management company will include all costs related to sourcing a new tenant for a vacant property. This fee is also known as the brokerage you pay for finding suitable tenants, often 1 to 2 weeks of rent.

Other tasks include sourcing applicants, communicating with prospective tenants, conducting background checks before arranging a meeting. A property manager will also complete necessary documentation related to your lease agreement.

A permit fee also includes an inspection report that allows you to document the property’s condition at the end of the lease.

Management Fee

This service covers day-to-day activities, usually charged as a percentage of the weekly rental amount, and may include the following tasks:

  • Scheduled collection of monthly rent
  • Routine inspections done on the property
  • Paying council and water rates on time
  • Overseeing tenant complaints/issues

Lease Renewal Fee

Many property managers servicing big real estate tycoons include lease renewal as part of their annual fee structures. This fee compensates the company for finding a tenant and the lease renewal fee is charged only once a tenant renews their lease.

Such a fee is also applicable if the existing occupants stay beyond the agreed term, and a new lease needs to be signed. If there are any legal implications with a tenant, commercial property managers may charge a tribunal fee to resolve court-related issues.

Maintenance Fee

Any expense that goes into maintaining an investment property or repairing it becomes part of rental property management fees. Whether it’s done in-house or by an external party, companies may charge a markup fee for this service. This is an additional 10% of the maintenance costs for the commercial property, usually repair works, like electrical or plumbing.

Annual Statement Fee

Annual statement fee covers all financials related to managing a commercial property in that year, often charging for monthly reporting too. But property management fees will vary depending on the level of services you’re being provided.

For instance, if you have used two different property managers within a year, switching mid-lease, you can bypass some costs like a letting fee. You can hire real estate agents for sourcing a new tenant while a management firm handles the rest.

Additionally, property management companies are either paid a commission (‘X’ percentage of rent) or a flat rate. A flat fee model complements those commercial properties that have a high occupancy rate, often in areas with increasing rents.

Looking for Commercial Property Management Services?

Typical services of a reliable commercial property management company will extend beyond lease management, including:

  • Ensuring that the property stays safe and occupied
  • Evicting any defaulters or non-paying tenants
  • Hiring external contractors to maintain the property
  • Regulating insurance fees for a commercial space
  • Evaluating financial records for annual reporting

Key Takeaways

Need More Information on Commercial Property Management? Contact Leah Jay Today!

Whether you’re a new property owner in the commercial real estate game or an experienced one in NSW, speak to our Commercial Property Management team at Leah Jay for better solutions.

Contact our professional team of property managers today!

Contact us now.

Disclaimer: This information is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your situation, and for professional advice, seek out a financial adviser.