You can appoint a real estate agent or residential letting agent to manage your rental property. Always ask to see an agent´s licence before appointing them as your property manager.
Maintain regular contact with your agent and alert them of any issues.
Choosing an agent
Before choosing an agent, carefully consider all commissions, charges and fees that they will charge for their services.
When choosing an agent to manage your property:
- read the appointment form carefully
- get a list of the services they will provide you
- ask for the agency´s complaint handling procedure
- agree on a procedure for any maintenance or repairs to your property, such as providing a number of quotes and a receipt for any work done
- establish a procedure for terminating tenancy or eviction processes, including how long rent can go unpaid.
Appointing an agent
To appoint an agent, the agent will ask you to sign a PAMD Form 20a - Appointment of agent (letting and property management) (PDF, 211 KB). This form details your arrangement with the real estate agent. It includes details of how much the agent will charge for their services and what costs they may incur on your behalf (for example, advertising). You should also detail the services you expect the agent to perform and how the agent is to perform those services. Make sure you check the form thoroughly before signing to ensure you are happy with the arrangement.
The agent needs this written appointment before they can act on your behalf to provide real estate services.
Property manager responsibilities
A property manager must:
- promptly respond to requests for maintenance or repairs
- act in your best interests, including getting quotes for repairs
- employ only licensed tradespeople for any repair or maintenance work
- develop and comply with a complaint handling procedure
- complete an inspection report and inventory
- accompany prospective tenants on all property inspections (unless otherwise instructed in writing).
Residential letting property management fees
The maximum letting fee that a real estate agent can charge you for managing your rental property depends on the length of the tenancy agreement.
|Tenancy agreement length||Maximum letting fee|
|More than 5 years||7.5% of the average annual rent|
|Between 1 and 5 years||5% of the first year´s rent|
|Between 3 weeks and 1 year||1 week´s rent|
|Between 2 and 3 weeks||75% of 1 week´s rent|
|Less than 2 weeks||50% of 1 week´s rent|
If an agent has charged you a letting fee (according to the table above), they may then charge commission of:
- 5% of the rent collected for the first year and
- 7.5% of rent collected from then on.
If an agent has not charged you a letting fee, they may then charge commission of:
- 7.5% of rent collected.
Your agent is also entitled to further payments, as agreed in writing between you and the agent, if they arrange and supervise repairs and replacements for the property.
Holiday letting property management fees
|Tenancy agreement length||Maximum commission|
|Less than 3 months||12% of rent collected|
|More than 3 months||9% of rent collected|
Managing your own property
For information about managing your own property, contact the Residential Tenancies Authority.
If you own a lot in a community titles scheme, there may be an onsite letting agent. You do not have to use this agent, but it may be convenient to do so. For more information, contact Body Corporate and Community Management.
Real estate fraud warning
Identity fraud and scams are increasingly prevalent throughout the community and the real estate industry is not immune to falling victim to such events.
Two highly publicised incidents in September 2010 and March 2011 resulted in properties being sold in Western Australia without the knowledge and consent of the lawful owners.
In both instances, real estate agents were contacted by the fraudsters who were acting as the true owners. The properties were tenanted and managed by a real estate agent on behalf of the registered owner. The fraudsters contacted the agent, pretended to be the owners and notified them of new contact details which formed the basis of future contracts.
These two events highlight how easily a fraud can commence and emphasise that consumers need to be on high alert for potential fraudulent real estate transactions.
If you suspect identity fraud in a real estate transaction, contact the Queensland Police immediately and do not act on the sale of the property.
Last reviewed 07/05/2013