Mar 27, 2025, 14:24
by
Defence Housing Australia
Tempting landlords with low-cost property management is not uncommon in the real estate market.
The enticing lower rate grabs attention but it can be a lot less attractive when you add in the exclusions and extras that landlords often have to pay to operate their investment property.
If you are wondering if you are paying too much, this two-minute video will walk you through what’s covered under DHA’s fee versus a traditional management agreement.
Real estate agents and property managers usually charge a percentage of the gross rent in fees. This covers their time to coordinate the day-to-day running of your investment property, such as organising repairs (the actual repairs are usually billed separately), liaising with tenants, conducting routine inspections and managing payments.
On top of that, they frequently charge extra for things like advertising, letting fees each time you need new tenants, lease renewal fees, even a cost to supply financial statements for your tax return.
It can feel like you constantly have your hand in your pocket. Plus, if the property is vacant, the landlord loses the rent.
Over time, these costs can add up. One solution is a Property Care arrangement with DHA. A long lease with us means guaranteed1 rent, paid on time, even if the property is empty.
Most non-structural repairs are covered too. You don’t need to worry if a tap leaks or the oven is broken. These things are automatically fixed and paid for within the standard fee.
A new report by leading economists Oxford Economics Australia compares some of the traditional options in today’s market with our exclusive long-term lease, Property Care Contract2 and simple fixed fee.
Although our upfront fee can be a little higher, the report found it was cheaper in the long run across most rental scenarios for both houses and units. In some situations, owners stood to save more than $5,000 a year compared with traditional property management arrangements.3
Property management can make or break your investment. If you don’t have time or money to waste, it pays to read the fine print.
1. Rent may be subject to abatement under certain circumstances such as loss of enjoyment or amenity, or breach of lease terms. Rent is paid where the property is habitable. Should a property become uninhabitable during the term of the lease, or lessor breaches the lease terms, the rent may cease or abate and the lease may be terminated by DHA. Guaranteed rent is subject to the terms of the lease. DHA does not take into account an investor’s objectives or financial needs. Investors should always seek appropriate independent advice before making any investment decisions with DHA.
2. A comprehensive description of repairs included in our service and exclusions can be found in the Property Care Contract. For more information, please visit https://www.dha.gov.au/investing/property-care.
3. Source Oxford Economics Australia, Property Management Fee Comparison - Houses, 2025. This is the case at three rent levels for units ($800, $950 and $1,100) and all rent levels for houses, under the high-cost scenario.