How much are property management fees in NZ?

Every property management company has their own way of charging, but usually you’ll pay between 7-12% of your property’s gross rental income. If you’re charging the average rent in NZ ($620/week) that means your property management fees will be around $43 - $74 a week.

There may also be extra charges for services such as:

• Marketing the property and finding a tenant: $300 - $500 + GST

• Healthy homes standard assessments: $150 + GST

• Property inspections: $35 to $65 + GST (these are performed three monthly)

• Organising maintenance and repairs: typically around 7-10% of the cost + GST.

• Attending hearings or tenancy tribunal matters: may incur a charge, plus an hourly rate. 

If your property manager performs other duties not covered by their contract they may charge additional fees, or an hourly rate for their time. This hourly property management rate can vary considerably, but it’s usually around $40-$60. 

Note: Some property management companies offer two different rates, including a higher rate (usually around 10-12%) that is all inclusive and a lower one, which is not. If you go with the higher rate, generally you won’t pay extra for any of the services listed above but with the lower rate you will.

Being a landlord is a big responsibility and a lot of work - it’s a property manager’s job to take some of that off your shoulders. A property manager will:

Marketing your property on all relevant platforms (like Trade Me Property) to attract tenants. Holding viewings, answering the questions of prospective tenants and receiving applications from prospective tenants. Property managers may charge an extra fee for this. 

Vetting and screening tenants to make sure they can afford to pay rent and don’t have a history of disputes with landlords or non-payment of rent or rent arrears. 

Managing the end of tenancies, including notice periods, retrieving bonds, inspecting the property for damages and deducting any damage from bonds. Property managers will also manage the beginning of tenancies, including the signing of the tenancy agreement and providing keys to the property. 

Ensuring that your rent is collected on time  from tenants. Notifying you and your tenants if rent is not paid and addressing rent arrears.

Arranging tradespeople to inspect your property and carry out all necessary repairs and maintenance tasks. Property managers, who will often have a team of tradies they work with, may charge a percentage of the cost of the repairs.

Ensuring that your property meets all relevant legal requirements, including fire safety, Healthy Homes and more. Property managers may charge an extra fee for Healthy Homes inspections (see above).

Performing regular inspections of your property to ensure it is kept in good repair and notifying you of any recommended repairs or maintenance requirements. This is necessary to fulfil insurance requirements. Property managers may charge an extra fee for this service. 

If you need advice on your property your property manager should be able to help. For example they may be able to suggest an ideal price for rent, suggest ways to improve your property to make it more attractive to tenants, or recommend choosing a certain tenant.