How Much Does a Property Manager Cost?

Hiring a property manager can be one of the best decisions a landlord makes—saving time, reducing stress, and helping maximise rental returns. But when it comes to cost, there’s often a lot of confusion, as many companies aren’t transparent with their fees and charges. Fees can vary depending on the services provided, the location of the property, and the experience of the company. So, how much does a property manager actually cost in New Zealand? And what should you look out for when looking at the management agreement? 

One key mistake landlords make when choosing a property manager is they focus on the management fee percentage only, and they don’t consider added fees. What you really need to be looking for is hidden fees and whether fees are charged on outgoings. And you need to find out what service you’ll be receiving, as incompetent service for landlords and tenants can be costly in the long run. Your rental property is likely to be your biggest investment, so you need to ensure it’s looked after, and it’s providing you with the best return on investment possible. 

At Aspire we have a “no hidden fees” policy and a “no fees added to outgoings” policy – so before you join us, you’ll know exactly what you’ll be paying.

To help you understand what to expect, here’s a breakdown of the common types of property management fees you might come across in New Zealand, and we explain which ones we charge.

Common Property Management Fees in NZ

This is the main fee you’ll pay for day-to-day property management services. It’s usually a percentage of the rent collected and typically covers:

2. Maintenance and Outgoings Fees

While some property managers include this as part of their main management fee, MOST charge a management fee on top of the cost of any repairs and maintenance. 

At Aspire we don’t add ANY fees to your maintenance, repairs or outgoing bills. This way, you know exactly what you’ll be paying for our services, and we aren’t incentivised to get unnecessary work done at your property. 

For example you might be offered a management fee by a company, let’s say 7.5%, but they also add that to all of your outgoings and maintenance too. You have no idea how many maintenance bills you might receive, with the 7.5% fee added onto each of them, AND many companies add it to each water and rates bill they pay for you too!

For example in 12 months you might pay:

• • $4,000 in council rates; 7.5% = $300.00

• • $600 for a new kitchen tap; 7.5% = $45.00

• • $300 for a leaking toilet; 7.5% = $22.50

• • $310 fixed water charges; 7.5% = $23.25

• • $300 for an end-of-tenancy clean; 7.5% = $22.50

• • $250 for gutter cleaning; 7.5% = $18.75

• • $1,000 tenant water charges; 7.5% = $75.00

So on top of your management fee; you’d pay an additional $507 in maintenance and outgoings fees per year.

At Aspire we don’t charge ANY of these fees! 

3. Letting or Tenant Placement Fee and Advertising Fee

When a new tenant is found, letting fees and advertising fees usually apply. This covers:

• • Advertising the property

• • Conducting viewings

• • Screening and vetting tenants

• • Preparing the tenancy agreement and bond documentation

At Aspire we charge a letting fee of one week’s rent + GST, and a discounted Trade Me advertising fee of $120+GST. (For this price, we get a premium listing for you; if you advertised the property yourself, it would cost you $369 – $499, depending on your weekly rent.)

If you don’t want to pay a letting fee, we offer an increased management fee option so you can spread the cost of any letting fees over time. It’s your choice. 

4. Inspection Fees

Some companies charge a separate fee for routine property inspections, while others include this in their management fee. Regular inspections are crucial for protecting your investment, and most insurance policies require them every three months to keep the policy valid.

At Aspire, we charge a small fee per inspection, so we are incentivised to get them done. Many companies that include routine inspections in their management fee do not complete inspections in a timely manner or at all! 

5. Administration or Monthly Statement Fees

Some property managers charge a monthly fee for generating statements or managing trust accounting. And some charge you for financial statements at the end of the year.

At Apsire, your management fee covers these, so you’ll never see an admin or statement fee from us. 

6. Professional Photography Fees

We include photographs taken by our staff free of charge; however, we recommend professional photos, as having these can attract more viewers to your property, and a well-presented listing can command a higher rent. Our professional photos start at $249+GST.

7. Tribunal Representation Fees

If a tenancy issue escalates to the Tenancy Tribunal, most property managers charge a fee to represent you. We charge $75ph for preparation and attendance at the Tribunal, in the improbable event we must attend. We attend the tribunal approximately six times yearly, with over 1,000 properties under management. 

Why Fees Vary

• • Location of the property

• • Number of properties managed

• • Type of property (residential vs. commercial)

• • Level of service or specialisation

• • Experience and track record of the  property management company

Many companies will offer a lower fee to attract customers, but at what cost does that lower fee come? A half-percent difference in management fees might save you a few dollars each week, but the financial impact of poor property management can be substantial. Vacant properties, problem tenants, deferred maintenance, and emergency repairs quickly erase any initial savings from a lower fee structure. To make the numbers work, a property manager offering low fees will most likely manage too many properties per property manager to provide you or the tenants with a good service, and they will most likely make money off hidden fees. Your property manager’s expertise in maximising revenue while controlling costs will have a far greater impact on your investment returns than a marginally lower management fee. Remember in property management, as in most things, you typically get what you pay for. 

Choosing Your Property Manager

Before choosing your property manager, make sure you conduct this research:

• • Check their Google reviews – do they seem genuine? Are there enough reviews to judge them on? Is there a good mix of reviews from both landlords and tenants?

• • Talk to them, and ask:
    • • How many properties does each manager look after?
    • • What’s the minimum contract period I have to sign up for? 
    • • What are your operating hours? What about after hours, can you be contacted 24/7?
    • • Do you conduct viewings on the weekend? 
    • • Do you have an online owners portal where I can see live financial information?
    • • Do you add fees to maintenance bills and other outgoings?
    • • How do you communicate with me? And how often? 
    • • Do you operate a trust account?
    • • What’s your current vacancy rate? And how does this compare to the market at present?
    • • How many days do you take to rent a property on average? And how does this compare to the industry average? 
    • • How often do you review the rent?
    • • How do you pay the water bills? Do you add a fee to them? 
    • • Do you have an in-house maintenance team?
    • • How do tenants log maintenance requests?
    • • How often do you pay the rent you are holding to your landlords? 
    • • Do you charge a fee for preparing my EOFY statement? 
    • • Is property management your core business? Or do you sell real estate too? 
    • • What other fees do you charge? 

If they can’t answer these questions satisfactorily, then keep looking! 

Talk to Us First

We can answer all of the above questions for you, so we’d love to discuss your property and specific needs. If you’re interested in working with a property manager and what it might cost, let’s have a chat.

Contact us here to get started.