There are hundreds of property management companies in Brisbane, yet many landlords make the same common mistake. When selecting a property manager, they either choose the one with the cheapest fee—or the one who happens to be a friend of a friend (or their second cousin’s cousin).
If you look at property management fees in Brisbane, they generally range from 6% to 10% (excl. GST). Inner-city areas typically sit around 7%–8% (excl. GST). The fiercest competition, however, is often seen further south of Brisbane, where more amateur agencies operate and focus on winning business at any cost. I’ve seen 5% including GST, with six months of free management thrown in. Yes—crazy.
As a landlord—or more accurately, an investor—it’s extremely important to understand some fundamental logic behind property management. This understanding will help you make a sensible decision when selecting an agency to manage your most valuable asset: your property.
If you choose an agency based on the following considerations, please think twice.
1. “The property manager is a friend of mine”
There is nothing wrong with having your best friend manage your most valuable asset. At the end of the day, humans rely on relationships. We like to believe that when there’s a relationship, we’ll receive more attention (aka more care). That’s the ideal scenario—and also where we often ignore systematic risk.
In reality, your friend probably doesn’t manage only your property. If they do this for a living, it’s very likely they manage 100 properties, and in some extreme cases, 200 properties, often with little or no support. Why no support? Because a 5% fee doesn’t allow it.
As much as your friend may want to give your property extra love and attention, it’s simply not practical. You might ask, why does one property manager manage so many properties? Good question. Property management is actually a low-margin business. Labour and wages make up a significant portion of costs, and without managing enough properties, the fees collected won’t even cover expenses. Whether your friend is a business owner or an employee, what they do must still make commercial sense.
If your friend is a great property manager or business owner—with strong structures and processes in place, and a capable team to cover holidays or sick leave—then yes, this could be a viable option. At the end of the day, being a friend is very different from being a client. You need to understand how they work to ensure your asset is properly protected.
2. “This agency charges a lower fee”
This is actually more of a warning sign to me than a reason to quietly celebrate finding a deal no one else knows about.
Let’s put on our investor hats. If a business puts genuine effort into its work, earns a strong reputation, and has customers raving about its service, it naturally stands out from the competition. While every business wants to keep costs down and deliver value, there are significant costs involved if a company is:
- Always hiring the best talent on the market (which requires fair wages and pay structures)
- Investing in ongoing staff training and development so their team becomes industry experts (good training is not cheap)
- Providing the best tools and technology to improve efficiency (software, systems, equipment)
- Most importantly, ensuring there are enough resources so property managers are not burnt out and their wellbeing is looked after
All of this leads to one outcome: consistent service quality—exactly what a sophisticated investor should want.
When an agency charges below industry-average fees, none of the above is realistically achievable. The most common survival method for low-fee agencies is cutting staff costs—having one person manage everything end-to-end. Investors might think this is great because they only deal with one contact. In reality, that person is likely burnt out, unsupported, and constantly under pressure.
They can’t get sick. They can’t go on holiday. The phone rings nonstop, and they barely have time to check whether yesterday’s lease renewal was signed. This is the reality of low-fee property management. Why doesn’t the company hire more staff? Because 5% fees simply don’t allow it—let alone training and development.
There’s a Chinese saying: Wu ji bi fan—when something goes to the extreme, it often produces the opposite result. The cheapest agency can end up being the most expensive when it comes to protecting your asset. When things go wrong—and sometimes they do, even with good management—many low-fee agencies simply say, “You can move to another agency; we can’t help anymore.”
The landlord is then left to swallow all the problems, often spending thousands of dollars fixing issues before engaging a new agency.
So what should you do?
What questions should you ask when selecting a reliable property manager?
Here are my recommendations.
1. Understand their business structure—especially leadership experience
Do the business owners have a vested interest in their reputation? Do they genuinely understand property management?
Most real estate agencies offer property management, but many directors are primarily salespeople. If they don’t truly understand property management, how can they lead a team and ensure things are done properly?
2. Ask: “If my property manager is on leave, what happens to my property?”
This is a critical question. People get sick. People take leave. What matters is whether the business has sufficient backup and resources.
Who handles urgent tenant requests? Is there another property manager? Does your manager have an assistant? What happens if they’re sick on the day of your exit inspection?
There’s no right or wrong answer—but the quality of the answer will tell you whether the business has proper systems in place to deliver consistent service, regardless of who is at work that day.
3. Do they charge reasonable fees?
A healthy business relationship needs to be fair for both sides. Reasonable fees motivate staff, support better systems, and lead to better outcomes. If the fees are extremely cheap—be alert.
4. Test their legislative knowledge (gently!)
This can be hard for first-time landlords. If you’re unfamiliar with the RTRA Act, try this simple test:
“If my tenant wants to keep a pet, what is your process?”
Queensland law has changed in recent years. There are prescribed reasons that must be considered, and tenants must submit Form 21 before a decision is made. Once the form is submitted, landlords have 14 days to respond—otherwise, the request may be deemed approved.
If your property manager skips these details or says they’ll “just discuss it with you,” they’re not guiding you properly. These small details carry significant risk. An unapproved pet can lead to damage to floors, fencing, and higher repair costs. If I didn’t tell you this, you might never know—so imagine what else you might be missing.
5. Test their dispute-resolution and QCAT knowledge
Speak with the department manager or business owner. Do they understand QCAT processes? What happens before lodging an application? How long are wait times?
When disputes arise, these are the people representing you in front of an adjudicator. Their experience directly impacts your success in QCAT or insurance claims. Ask for case studies—a confident property manager will have plenty of stories to share.
6. Test their logic when setting rent
If they sound too confident and promise everything you want—think twice. Are they telling you what you want to hear to win your business, or are they basing their advice on solid market analysis?
Pricing is always a trade-off with vacancy. It’s also closely linked to tenant quality. Pricing is both an art and a science—make sure you’re comfortable with the reasoning behind it.
7. Check their technology
Good businesses constantly improve. 3D entry and exit condition reports, for example, offer far better protection than traditional formats. Has the agency invested in modern technology and automation to protect your asset?
8. Ask about vacancy management and rent arrears processes
Many daily tasks in property management are invisible to landlords. Maintenance is important—but property management is far more than “fixing houses.”
It’s about legislative compliance, correct guidance, timely communication, proper documentation, and risk management. You want minimal legal exposure, professional handling of issues, and peace of mind knowing your asset is in good hands.
We’ve managed properties for many clients for many years. When a client decides to sell, we want it to be an investment decision—not because they’ve had enough headaches.
And that, in my view, is what good property management should always aim for.
Final Thoughts
In the end, choosing a reputable business is far more important than choosing a cheap one. A strong property management company should be built to be sustainable—not overly reliant on one person, but supported by systems, training, processes, policies and teamwork.
This kind of structure may not always be the cheapest on paper, but it is far more beneficial to investors in the long run. It protects your asset, reduces risk, and most importantly, gives you peace of mind.
I truly hope you find a reliable team who can look after your property for many years to come. And if you can’t find one—my humble team is right here. We’re only a phone call away 🙂
Less than 10 months left to get ready - Important changes to property law in Queensland
