Commercial property management fees

One fee. Your tenant pays it.

A 5% management fee on monies collected. On a net lease your tenant reimburses it as a recoverable outgoing, so your net cost to own is structurally near-zero.

  • 5% of monies collected. All-inclusive. No letting markups, no renewal fees, no monthly admin lines.

  • Recovered from your tenant. On a commercial net lease the fee is part of recoverable outgoings.

Get a quote See what 5% includes

01 The economics

The fee your tenant carries.

In Australia the vast majority of commercial leases are net leases. Under a net lease the tenant reimburses the landlord for outgoings, and commercial property management fees are a recognised, recoverable outgoing. That moves the 5% off your return and onto the tenant's outgoings contribution.

The 5% is not drawn from your rental return. Your tenant pays it as part of their outgoings, the same way they pay council rates, insurance and land tax on a net lease.

So your net cost to own the management is structurally near-zero. The real question becomes whether the manager you are passing through is worth what your tenant is paying.

The cost of the wrong manager is not 5%. It is the missed review, the unreconciled outgoing, the lapsed bank guarantee. That lands on you, not the tenant.

Commercial lease and outgoings statement reviewed by a Sydney property manager at Blox Commercial
Fee charged5% of monies collected
Who pays itYour tenant
Your net cost to ownNear-zero

Recovered as an outgoing on a net lease. Generally tax deductible. Confirm with your accountant.

02 The line-by-line

What 5% includes, against what others bill on top.

Industry standard sits at 5 to 8 percent ongoing, then the extras start. Here is the same work, side by side, on one fee versus an itemised agreement.

Blox

All in the 5%.

One all-inclusive fee on monies collected. Nothing added at renewal, nothing buried in the statement.

  • Letting and new tenant feesIncluded
  • Lease renewal and extension feesIncluded
  • Outgoings recovery and reconciliationIncluded
  • Rent review tracking, CPI, market and fixedIncluded
  • Maintenance coordinationIncluded
  • Dispute handling and tribunal liaisonIncluded
  • Monthly admin and reportingIncluded
Typical agreement

Charged on top.

An ongoing rate, then a line item every time something happens. The headline rate is rarely the real rate.

  • Letting fee, often weeks of rentAdded
  • Lease renewal fee each termAdded
  • Outgoings recovery markupAdded
  • Rent review or valuation feeAdded
  • Maintenance coordination marginAdded
  • Dispute and tribunal chargesAdded
  • Monthly admin line in the statementAdded

The 5% is the whole fee. No letting markups, no renewal fees, no outgoings recovery margin, no admin lines. The same work, one transparent rate, all of it part of running your property properly.

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03 Inside the fee

Everything it takes to run a commercial property.

Three jobs sit inside the 5%: the lease, the money and the relationship. None of them is an add-on.

Rent and reviews

  • Rent collection and arrears management
  • Pro-active rent review tracking across CPI, market and fixed reviews
  • Outgoings reconciliation, including statutory s28 deadlines
  • Bank guarantee monitoring with auto-alerts before expiry

Care and reporting

  • Routine inspections and condition reporting with photos
  • Financial reporting, monthly plus tax-ready year end
  • Real-time owner dashboard, every payment and event, live
  • Full trust-account compliance and clean year-end books

People and response

  • 24/7 tenant response and emergency dispatch
  • Direct access to a named property manager
  • Direct mobile and direct email, no unreturned calls
  • One relationship who knows your asset and tenants

04 Why it earns its keep

Better service, happier tenants, lower vacancy.

Commercial property is a chain reaction. The fee buys management that keeps every link intact, from commercial leasing through to renewal.

Pro-active service

One manager. Real relationships. Always reachable. Maintenance scheduled, reviews diarised, compliance dates locked in months ahead.

Tenants happy

Issues resolved fast. Communication clear. When something happens at 2am, a real property manager owns it. They stay.

Property maintained

Asset preserved. Maintenance ahead of failure. Higher occupancy protects your yield and defends capital value.

Tenants renew

Lease extensions over churn. Stability over scramble. Low vacancy, yield protected, capital value defended.

05 Questions, answered

Commercial property management fees, answered.

The questions Sydney landlords ask before they switch. Straight answers, no sales pitch.

Who actually pays the property management fee on a commercial lease?
In most commercial net leases in Australia, the property management fee is a recoverable outgoing. The tenant reimburses it as part of their outgoings contribution. This is a structural difference between commercial and residential, and it changes the after-tax economics significantly.
What does the 5% Blox fee actually include?
Rent collection, arrears management, pro-active rent review tracking, outgoings reconciliation including s28 deadlines, bank guarantee monitoring, routine inspections, financial reporting, a real-time owner dashboard, 24/7 tenant response, and direct access to a named property manager. No sick days. No unreturned calls. Direct mobile. One inbox.
What do other firms charge on top that Blox folds into the 5%?
Letting fees, lease renewal fees, outgoings recovery markups, dispute and maintenance coordination charges, and monthly admin lines are commonly billed on top of an ongoing rate. Blox folds all of these into the one 5% fee, so there is nothing buried in the statement and nothing added at renewal. See the line-by-line above.
How does 5% compare to the industry standard?
Industry standard is 5 to 8 percent of gross rental income for ongoing management, but rarely all-inclusive. Most firms add lease renewal fees, outgoings recovery markups, dispute charges, and maintenance coordination fees on top. Blox charges 5 percent all-inclusive ongoing rate, with no surprise extras.
Are commercial property management fees tax deductible?
Yes. Commercial property management fees are generally fully tax deductible as a cost of producing rental income. Combined with tenant recovery via outgoings on a net lease, the after-tax economics work strongly in the landlord's favour. Always confirm with your accountant.
Do you really respond to tenants 24/7?
Yes. Commercial businesses operate around the clock. Warehouses, retail, childcare, services. When something happens at 2am, a property manager not picking up the phone is a problem. Our property managers are available 24/7 for urgent tenant needs. Faster response means happier tenants, lower vacancy, and better-maintained properties.
When should I switch commercial property managers?
Switch when you see any of: deferred maintenance, missed inspections, no servicing reports, missed rent reviews, expired bank guarantees, rising vacancy, vague monthly reports, surprise additional invoices, or a manager who reacts instead of plans. The cost of staying with the wrong manager dwarfs the cost of switching. We handle the entire transition.

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Send us one lease and your current management agreement. We will show you exactly where rent reviews, outgoings recovery, maintenance or tenant service are slipping. Free. No obligation. No sales pitch. Contact Blox Commercial to get started.

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