Buying guide

How much are property management fees in NZ?

If you’ve got an investment property you’ll have a few expenses - find out how much your property manager will cost

Last updated: 2 April 2024

Property investors have several costs to cover, including property management fees. This service is often essential but it can be expensive - so how much does using a property manager cost?

Property management fees explained

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.

What does a property manager do?

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 and helping select tenants

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. 

Screening and vetting tenants

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 and beginning of tenancies

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. 

Collecting rent

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

A good property manager will save your plenty work.

Organising maintenance and repairs

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 your property meets all relevant regulations

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 property inspections

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. 

Providing expert advice

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. 

Is property management worth the fees?

Property management fees are expensive. In fact, if you charged the average rent in NZ and paid a 9% fee your property manager would cost you just over $2,900 a year. But a good property manager is well worth the expense. They’ll save you significant time and stress, help you to reduce vacancies and choose good quality tenants - which will ultimately help ensure your investment property performs well. 

With that said, not all property managers provide good value. To make sure you find a good one, go with a property manager from a reputable company, with plenty of local experience and positive online reviews or testimonials.  

DISCLAIMER: The information contained in this article is general in nature. While facts have been checked, the article does not constitute advice. The article is only intended to provide education about property management fees. Nothing in this article constitutes a recommendation that any type of loan is suitable for any specific person. We cannot assess anything about your personal circumstances, your finances, or your goals and objectives, all of which are unique to you.


Ben Tutty
Ben Tutty

Ben Tutty is a regular contributor for Trade Me and he's also contributed to Stuff and the Informed Investor. He's got 10+ years experience as both a journalist and website copywriter, specialising in real estate, finance and tourism. Ben lives in Wānaka with his partner and his best mate (Finnegan the whippet).