Free tool

Agency commission calculator

Work out management commission on collected rent, what it comes to with VAT, and what actually lands in the owner's account each month.

Monthly rent collected (R)

Management commission (% of rent)

VAT (% — 0 if not registered)

Units under management

Other monthly deductions from the owner (R — levies, repairs, rates)

Per unit, per month	Amount
Rent collected
Commission (excl. VAT)
VAT on commission
Other deductions
Owner receives

Across the portfolio	Amount
Commission per month (incl. VAT)
Commission per year (incl. VAT)

Commission rates in South Africa vary by region, property type and service level — residential management commonly sits somewhere around 7.5%–12.5% of rent collected, with procurement or tenant-placement fees charged separately. VAT applies only if the agency is a registered vendor.

What owners are actually paying for

Management commission is charged on rent collected, not rent invoiced — which is the point of the arrangement from the owner's side: if the agency does not collect, the agency does not earn. That alignment is worth stating explicitly in the mandate, because it is the clearest answer to an owner questioning the fee.

Separate from monthly management, most agencies charge a once-off procurement or tenant-placement fee when a new tenant is signed, typically expressed as a percentage of the first month's rent or a fixed amount. Keep the two clearly distinguished on the owner statement — blurring them is a common source of owner disputes.

Commission calculated on every statement, automatically

Locare posts management fees to a double-entry ledger as rent is reconciled, then produces owner statements and split payouts without a spreadsheet in sight.

See how it works