How Much Does a Property Manager Cost?
Date: 10 Feb 2025
How Much Does a Property Manager Cost?
Managing a rental property can quickly become overwhelming. From late-night maintenance calls to keeping up with ever-changing legislation, it's enough to make any landlord wonder if there's a better way.
That's where professional property management comes into the picture. As Harcourts' top-performing property management office in the Northern Region in 2021, 2022, and 2024, we understand that cost is just one piece of the puzzle. What truly matters is the value and peace of mind of having dedicated professionals managing your investment.
But how much does a property manager cost? Join us as we break down the costs of professional property management services.
Understanding Property Fees
Before we look at the specifics, it's essential to understand that property management fees typically reflect the level of service provided. So, how much does a rental management company cost in general? Unfortunately, that's not such a simple question. You'll encounter different fee setups and service options when looking for property managers.
While it might be appealing to choose the cheapest fees to save money, good property management is an investment in your property's future.
How Much Does a Rental Management Company Cost: Breaking It Down
Management Fees
How much do property managers charge for their ongoing management services? The most common fee structure for property management in New Zealand is a percentage of your weekly rental income, typically between 7% and 10%, plus GST. This fee covers the day-to-day running of your property, including:
- Rent collection, monitoring, and reporting
- Regular property management inspections
- Maintenance inspections
- Communication with tenants
- Advice on market trends
Because these fees are tied directly to your rental income, property managers stay motivated to help you achieve the best possible returns.
Letting Fees
When your property needs new tenants, there's often a one-off letting fee to cover the costs of finding quality tenants. But how much do property managers charge for this? These fees vary from company to company but typically equate to approximately one week's rent. These fees cover the costs of:
- Advertising across major rental websites
- Property viewings
- Comprehensive tenant screening
- Background and reference checks
- Tenancy agreement preparation
- Initial property inspection and documentation
At Reforma, we include professional video walkthroughs and photography in our comprehensive package to help attract higher-quality tenants and reduce vacancy periods.
Additional Services
Beyond the day-to-day services and finding tenants, property managers may provide extra services at an additional cost. These services include:
- Maintenance coordination fees
- Tribunal attendance and preparation
- Healthy Homes compliance assessment
- Methamphetamine testing
- Insurance claim management
- End-of-year financial statements
The cost of these additional services will depend on your chosen property management company. Some will include these services in their general management fee; others will charge them separately as an additional service. At Reforma, we clearly outline all our fees upfront, so you'll never be surprised by unexpected costs when managing your investment property.
The Hidden Value of Working With a Property Manager
If you find yourself wondering, "How much does it cost to hire a property manager," you're probably not familiar with the hidden value of working with one. The value extends far beyond the fees you pay. Professional property management helps you:
- Save time by handling tenant communication and maintenance issues.
- Reduce vacancy periods.
- Maintain consistent rental income with proven rent collection systems.
- Stay compliant with property legislation.
- Avoid disputes through professional tenant management.
This is just the tip of the iceberg of the value landlords can receive from partnering with a professional property manager like the ones at Reforma. Our expertise and low 0.74% vacancy rate mean your property can generate consistent returns while requiring less time and energy on your part.
So, How Much Does It Cost to Hire a Property Manager?
How much are property management fees in reality? As we've explored, the total cost depends on your property's needs and the required services. 7-10% of your rental income is a small sacrifice to make for the peace of mind you get with comprehensive property management services.
The Reforma team delivers exceptional property management that pays for itself through better returns, reduced stress, and protected investments. Our dedicated team has a proven track record and can help you maximise your property investment. Get in touch with Reforma today to discuss your property.
