Management fees are often a sticking point for BDMs. Competing with agencies that undercut fees can feel like a race to the bottom. But the reality is, chasing the lowest fee isn’t sustainable—for you or the landlord. Securing top fees isn’t about price—it’s about value, profitability, and confidence.
The Mindset Shift: Value Over Price
It’s easy for landlords to focus solely on fees—after all, numbers are straightforward. But as a BDM, your role is to help them look beyond the percentage and see the bigger picture. Management fees are not just a cost—they’re an investment in outcomes like:
When landlords see how your services directly improve their property’s performance, they’ll start to understand that a slightly higher fee can deliver far greater value.
Percentage vs Dollar Value: The Agent’s Perspective
As BDMs, we sometimes fall into the same trap as landlords—getting fixated on percentage figures. But what really matters isn’t just the percentage; it’s the dollar value and how it contributes to your agency’s bottom line.
For example:
The percentage is the same, but the revenue and profitability are drastically different. And here’s the kicker: lower-rent properties often require just as much, if not more, management effort.
Why This Matters:
Knowing the dollar value and profitability of each property allows you to make better decisions. A slightly lower percentage on a high-rent property might yield higher profits, while a higher percentage on a low-rent property could struggle to cover costs. Profit margins—not percentages—should guide your fee strategy.
The Conversation: Handling Objections
Fee objections are part of the job, but they don’t have to derail the conversation. Instead, use objections as opportunities to redirect the focus to value and outcomes.
Landlord: “Why are your fees higher than the agency down the road?”
You: “That’s a great question. Many landlords who’ve switched to us initially had similar concerns, but they found our proactive approach saved them more in the long run. Would you like me to share how we achieve that?”
Landlord: “Can’t you lower your fee to match another agency?”
You: “I understand wanting to minimise costs, but let’s break it down. On a $500/week property, that 1% difference is $5 per week. For $5, you’re getting higher-quality tenants, fewer vacancies, and expert advice that protects your asset. Doesn’t that make sense as an investment?”
Redirecting objections like this positions you as a problem-solver and trusted advisor, shifting the conversation away from price and toward outcomes.
Differentiate Yourself: Stand Out with Value
In a competitive market, standing out isn’t just important—it’s necessary. Highlight what makes your agency different and how those differences translate to better results for landlords.
Examples:
Landlords want to know what they’re paying for, and differentiation helps you show why your services are worth the fee.
The Hard Truth: Not Every Client is for You
Some landlords will always choose the cheapest option, no matter the value you offer. And that’s okay. Walking away from a deal that doesn’t align with your business model protects your time and energy for clients who appreciate your worth.
Saying “no” also reinforces your position as a premium provider. It shows confidence in your services and attracts landlords who value quality over cost.
The Takeaway: Value and Profitability Go Hand in Hand
Winning the management fee conversation isn’t about competing on price—it’s about knowing your value, understanding your profitability, and helping landlords see the bigger picture. By shifting the focus from percentages to outcomes, preparing for objections, and standing by your worth, you can secure the right fees and the right clients.
Ready to Master the Fee Conversation?
Confidently navigating fee discussions is a skill that can transform your success as a BDM. The BDM Performance Program is designed to give you the tools, strategies, and confidence to:
Take the next step in your career—join the BDM Performance Program today and start winning the fee conversation with confidence. Ready to take your goal-setting to the next level?
