How to Rent Out Your Property: A Step-by-Step Guide

Ready to Rent Out Your Property? Start with the Right Manager.

Whether you call them a property manager, rental agent, or leasing agent — the person you choose to manage your investment property will directly impact your rental income, the quality of your tenants, and how much of your own time and energy the process consumes.

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‍What Is a Property Manager?

A property manager (also known as a rental agent, leasing agent, or rental manager) is a licensed professional who acts as the intermediary between you as the landlord and your tenants. Their responsibilities typically include:

• Advertising your investment property for rent with professional photos and listings on platforms like realestate.com.au and domain.com.au (only licensed agents can access these portals)
• Assessing and screening tenancy applications — including credit checks, rental history, references, and employment verification via national tenancy databases
• Lodging the rental bond and organising the residential tenancy agreement
• Collecting weekly rental payments and managing arrears
• Carrying out routine property inspections and providing written reports
• Organising and coordinating maintenance and repairs
• Handling all tenancy paperwork and staying current with state and federal rental legislation

Why Use a Property Manager to Rent Out Your Property?

A good property manager typically costs 7–10% of your weekly rental income. Here's why most landlords consider it money well spent.

The Benefits

1. They find suitable tenants for you

Finding the right tenants is one of the biggest challenges a landlord faces. Vacancy periods mean lost income, and poor tenant selection leads to costly damage and disputes. A property manager handles the entire process — from professional advertising and open inspections to thorough tenant screening via tenancy databases — so you're not relying on gut feeling alone.

2. They act as a buffer between you and your tenants

A rental agent handles all communication with tenants on your behalf — maintenance requests, rent queries, complaints, and disputes — removing the emotional friction that often comes with direct landlord-tenant contact. This is especially valuable for first-time investors who may still feel an emotional attachment to the property.

3. They manage all the paperwork and legal compliance

The paperwork involved in renting out a property is significant: tenancy agreements, condition reports, lease renewals, bond lodgements, inspection reports, maintenance records, and more. Your property manager handles all of this while staying current with state-specific rental laws, landlord rights, and legislative changes — protecting you from inadvertent non-compliance.

4. They provide objective, expert guidance

An experienced property manager monitors the local rental market continuously, advising you on the right time to review rent, when to invest in maintenance or renovations, and how to position your property competitively. Their local expertise also makes them invaluable when conducting rental appraisals and setting an initial rent figure.

5. They save you significant time

Self-managing a rental property is a substantial time commitment. Screening applicants, coordinating inspections, chasing arrears, organising repairs, and managing legal paperwork are all time-consuming tasks. Delegating this to a professional frees you to focus on the return — not the day-to-day running.

6. They're not emotionally invested

When disputes arise or difficult decisions need to be made, an objective professional who isn't emotionally attached to the property will make clearer, better decisions on your behalf.

The Trade-offs to Consider

Cost — Management fees typically range from 7–10% of weekly rent, plus a letting fee (usually 1–2 weeks' rent) and an administration fee. For some landlords, particularly those with high-equity, lower-yield properties, these costs require careful consideration against the value delivered.

Your property won't always be their only priority — A property manager handles multiple properties simultaneously. Before signing, ask how many properties they personally manage (ideally no more than ~120) and ensure they have the bandwidth to give yours proper attention.

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Key Questions to Ask Before You Sign with a Rental Agency

Before committing to any property management agency, cover the following in your initial meeting:

• Who will actually manage my property day-to-day? The person presenting to you may be a business development manager — confirm you'll meet your actual property manager before signing
• How many properties does the manager personally handle? Aim for no more than ~120 for quality service
• What is your tenant screening process? Ensure it includes tenancy database checks, credit history, rental history, employment verification, and reference checks
• How many routine inspections are included, and will I receive written reports?
• What is your arrears policy? Understand their process for late rent — enforcement, escalation, and tribunal representation if required
• What is the full cost of management? Clarify management fee, letting fee, administration fee, inspection fees, and whether all costs include GST
• Do you attend every property inspection personally, or hand out keys to prospective tenants? Always choose an agency that attends
• Are you available to show the property six days a week, including weekends? Many prospective tenants can only inspect outside business hours
• Can I speak to current landlords you manage properties for? Any confident, reputable property manager will provide references

For the full list of interview questions, see our 10 Essential Questions to Ask a Property Manager guide.

Step-by-Step Guide to Renting Out Your Property

Once you've selected the right property manager, here are the nine steps to follow to get your property leased successfully.

Step 1: Get Your Rental Property Inspection-Ready

First impressions matter — both to prospective tenants and to the rental appraisal process. Before your property goes to market:

• Walk through the property and address any maintenance issues: dripping taps, stiff windows, broken fixtures, mouldy grout, or faulty locks
• If the property is vacant, consider whether any renovation work — particularly to the kitchen or bathroom — is worth doing now before tenants move in
• Deep clean the entire property: carpets, windows, cornices, appliances, outdoor areas, and storage spaces
• Confirm all gas, electrical, and heating systems are safe and compliant — this is a legal requirement as a landlord

A well-presented, well-maintained property attracts higher-quality tenants and supports a stronger rental valuation.

Step 2: Secure Landlord Insurance

Before advertising, arrange landlord insurance. A standard policy typically covers:

• Financial loss due to tenants defaulting on rent
• Malicious damage or theft by tenants
• Legal expenses for tenancy disputes
• Accidental damage beyond normal wear and tear

Landlord insurance is one of the most important protections for your investment and relatively inexpensive relative to the risks it covers.

Step 3: Speak to Your Accountant

There are meaningful tax benefits to renting out a property in Australia — but only if you structure things correctly from the start. Before you list, speak to an accountant about:

• Tax-deductible expenses (property management fees, maintenance, insurance, depreciation)
• Whether a depreciation schedule is worth commissioning on your property
• Capital gains tax implications if you plan to sell in the future
• Negative gearing eligibility

Getting this advice upfront avoids missed opportunities and compliance issues down the track.

Step 4: Determine the Right Rent

Your property manager has current local market knowledge and will conduct a rental appraisal based on:

• Comparable properties currently available in your suburb
• Comparable properties recently leased and at what price
• Your property's specific features: bedrooms, bathrooms, parking, outdoor space, proximity to amenities

Cross-check their figure by searching similar properties yourself on realestate.com.au. You want to enter the market at a price that's competitive but not undervalued — setting rent too low is difficult to correct once a tenancy is underway.

Step 5: Advertise the Property

Your property manager will manage the entire advertising and marketing campaign on your behalf. A strong campaign should include:

• Professional photography (and ideally a floor plan)
• Compelling property copy that highlights key features and the surrounding area
• Listings on realestate.com.au and domain.com.au — portals only accessible to licensed agents
• A For Lease sign at the property
• Email to the agency's existing tenant database
• Social media promotion if applicable

The more qualified enquiries your campaign generates, the more choice you'll have in selecting the right tenants.

Step 6: Screen and Select Your Tenants

Your property manager will manage open inspections and private viewings, collecting applications from interested tenants. Their screening process should cover:

• National tenancy database checks (rental history, blacklistings)
• Credit and financial history
• Employment verification and income assessment
• Rental references from previous landlords or agents

All screening information should be provided to you so you can make an informed final decision. It's your property — you have the right to approve the tenants.

Step 7: Sign the Residential Tenancy Agreement

Once you've selected your tenants, your property manager will prepare and execute the residential tenancy agreement. This legally binding document should clearly state:

• Lease start and end date (fixed-term vs. periodic agreement)
• Weekly rent amount and payment method
• Bond amount and lodgement details
• Specific conditions — pets, modifications, garden maintenance, etc.
• Any special conditions agreed between you and the tenants

Your property manager will also collect and lodge the rental bond through the relevant state authority at this stage.

Step 8: Complete the Property Condition Report

Before the tenants move in, your property manager and the incoming tenants must complete a condition report — written and photographic documentation of the property's exact condition at the start of the tenancy. This is critical evidence if any disputes arise about damage at the end of the lease.

Both parties sign the condition report, and you should retain a copy for your records.

Step 9: Stay in Contact With Your Property Manager

With tenants in place, your property manager handles the day-to-day responsibilities — routine inspections, maintenance requests, rent collection, arrears monitoring, and lease renewals. Your main responsibility is to stay informed.

At a minimum, expect to receive:

• Monthly financial statements
• Routine inspection reports (with photos)
• Notification of any maintenance issues requiring your approval
• Advance notice of tenants vacating or requesting lease renewals
• Annual rent review recommendations

The best property managers treat your investment as if it were their own. If you're not receiving this level of service, it may be time to compare alternatives.

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FAQs: Renting Out Your Property with a Property Manager

What Is the Difference Between a Property Manager, Rental Agent, and Leasing Agent?

These terms are often used interchangeably in Australia, but here's a practical breakdown:

TermWhat It Typically MeansProperty managerLicensed professional responsible for the full day-to-day management of a rental propertyRental agent / rental agencyA real estate agency or agent that specialises in residential rental managementLeasing agentFocused primarily on finding tenants and executing the lease — may not manage the property ongoingProperty management companyA business dedicated to managing rental properties across a portfolio, often with specialist teams

When renting out your property, you want a full-service property manager — not just a leasing agent who disappears once the tenancy agreement is signed.

How Much Does a Property Manager Cost?

Most property managers charge between 7–10% of weekly rent as their ongoing management fee, plus:

• A letting fee (typically 1–2 weeks' rent) when a new tenant is secured
• A monthly administration fee
• Potential inspection and lease renewal fees

Always confirm whether quoted fees include GST, and clarify exactly what the management fee covers before you sign.

How Do I Find the Best Property Manager for My Rental?

Compare property managers in your area on LocalAgentFinder — see fees, rental management approach, and verified reviews from current landlords side by side.

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How Long Does It Take to Find a Tenant?

This varies by market, property type, and price point. Your property manager should give you a realistic estimate based on current vacancy rates and comparable listings in your area. Pricing at market rate (not above) and presenting the property well are the two biggest factors in minimising vacancy periods.

Can I Self-Manage My Rental Property?

Yes — but it requires a significant time commitment and a working knowledge of state-specific tenancy legislation. Most landlords who attempt to self-manage find the savings on management fees are quickly offset by the time spent, and by costly mistakes made without professional guidance. For most property owners, a quality property manager delivers clear net value.

What Should I Look For in a Property Management Contract?

Look for a contract that can be cancelled with reasonable notice — avoid any agency that presents a lock-in contract. Before signing, have an attorney review the terms and ensure the fee structure, services included, inspection frequency, and termination conditions are clearly documented.

Finding the best property manager doesn’t need to be a time-consuming process. You can compare property management fees and other information, such as rental strategy and independent landlord reviews, side-by-side with LocalAgentFinder.