Insights

Key takeaways

• Queensland semi-gross leases let tenants pay increases over base-year outgoings, including fees.
• Smart leases pass fees onto tenants via outgoings, cutting owners' expenses and boosting net income.
• Aegis offers expert lease advice that maximises deductions and ensures compliance.

The question 'Can I deduct management fees for my rental property?' is a common one among commercial property landlords.

The short answer is yes — commercial property management fees can be paid by your tenant through your recoverable outgoings.

It helps to understand semi-gross leases in Queensland. Essentially, they strike a practical balance between gross and net lease structures. They set a "base year" for outgoings — such as council rates, insurance and maintenance costs like cleaning — and require tenants to pay any increases above that base year over the term of the lease.

This means that if certain expenses, like property management fees, aren’t included in the original base year schedule, those additional costs can be charged to tenants when they arise.

Outgoings under this structure typically cover management fees, council rates, insurance, common area cleaning, land tax and ongoing maintenance, giving owners flexibility to recover more of their operating costs.

Owners can also structure leases so that management fees are covered indirectly, lowering net costs without impacting headline rental income.

At Aegis, we help owners navigate the finer details of lease structuring to maximise deductions and maintain compliance. Through careful planning, we ensure landlords optimise cash flow and take advantage of all legally available tax benefits, while keeping arrangements transparent and fair for tenants.

Our team’s local expertise helps deliver the right balance between efficiency, tenant satisfaction and return.

Understanding Semi-Gross Leases in Queensland

In Queensland, commercial property owners can often recover property management fees through smart lease structures, effectively turning them into a cost shared with tenants.

By including management fes in the property’s outgoings, landlords can pass these costs on as part of tenants’ operating expenses or rent obligations, depending on the agreement.

This principle of cost recovery means tenants contribute to or fully cover fees, reducing the owner’s direct outlay while maintaining professional oversight for the building.​

Lease types make a big difference here. In a gross lease, the landlord covers all operating costs, including management fees — but watch out: if fees aren’t budgeted in outgoings, they can’t be reclaimed, leaving owners footing the full bill.

A semi-gross lease offers more flexibility, letting tenants pay increases over base-year outgoings, which can fully cover rising management costs.

Net leases pass most expenses directly to tenants, and if fees aren’t scheduled one year, they can often be added the next.

For a deeper understanding of how these lease types work, refer to our guide Gross Rent vs Net Rent.

For owners, the benefits of these smart lease structures are clear: recouping fees boosts net income, cuts personal expenditure, and ensures both owners and tenants enjoy reliable, professional management.

They also streamline financial planning by syncing expenses with rental streams.

Compliance is key — lease agreements must clearly spell out tenant responsibilities for outgoings to meet Queensland’s commercial leasing rules. Transparent disclosure builds trust between tenants and owners and avoids disputes.

At Aegis, we guide owners in crafting lease structures that maximise management fee recovery while staying fully compliant. Our expertise in Queensland leasing law helps balance strong tenant relationships with peak financial performance.

For more information, visit our article on What Are Outgoings in a Lease? A Guide for Landlords.

Maximise Your Property Investment with Aegis

At Aegis, we’re your trusted partner in maximising property investment returns. Our team helps structure leases to recover management costs effectively and maintain seamless compliance.

With deep expertise in Brisbane’s commercial market, we handle the details so you focus on growth. Whether it’s transparent reporting, proactive outgoings management or strategic tax planning, our careful processes protect your asset and enhance its performance.

Want to ensure your property management fees are fully deductible and learn how to maximise your investment returns? Aegis provides expert advice and professional management to protect your property and finances.

 Contact us today for a free property management consultation.