December 22, 2023
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A property management company can be a real lifesaver – their knowledge and experience of the local Auckland market can turn the vast majority of tough situations into easily manageable tasks to make your life and job easier. Even so, keep in mind that these services come at a cost – property management fees.
The cost of property management can vary from company to company or manager to manager, and it’s essential that you understand how much you’re expected to pay before you sign any contracts or make any deals.
How Much Does A Property Manager Cost In Auckland? 5 Standard Management Fees
Before you learn what property management companies charge in Auckland, it’s important to know that every company has its own different way of charging its clients. Always contact your prospective property manager and ask about their specific fees to know what you are getting into.
Harper Properties can offer you a quick rental appraisal if you call us on 09 361 2810 or email auckland@harperproperties.co.nz.
Now, let’s get down to the key point – there are five main types of property management company fees: initial setup fees, tenant placement fees, monthly management fees, maintenance fees and additional charges.
1. An Initial Setup Fee
Some property management companies may charge a fee for initially setting up your account with their company. Not every company charges a setup fee.
This service may also include things like inspecting your property’s initial conditions and alerting your current tenants that they will be taking care of their property.
2. Leasing or Tenant Placement Fee
Also known as the Letting Fee, charged when securing new tenants, this fee covers tenancy applications, conducting background checks, and facilitating the lease agreement.
3. Monthly Management Fees
Most property managers will charge a monthly fee that you’ll need to pay. This fee may be a fixed rate, or it may depend on your income from your tenants’ rent.
Some companies may include different things in their monthly management service, so it would be best to familiarise yourself with what you should expect from their help.
Flat Fee For Property Management
Some management companies charge their clients a fixed price or flat fee that covers all of their services. A fixed price will simply be an already set amount that you have to pay every month rather than something that changes depending on what your property manager does.
A Percentage Of Rent
Besides a fixed fee, your property manager may choose to take instead a small percentage of your tenants’ monthly rent payments. This can vary based on:
- The area/suburb,
- Type of property
- Additional costs
6-10% is the average charged for property management fees in Auckland. So, if your monthly rent is $2000, and the property manager charges you 10%, you’re paying them $200 per month.
Now, usually, this ongoing management fee does not include the initial setup fee or how much the property management company will charge you to source and screen a tenant. They generally charge you x1 week’s rent.
So, in other words, every time they source and screen a new tenant for you, it’s going to cost you much more than that 6-10% ongoing management fee.
4. Maintenance Fees
Maintenance services involve keeping your properties neat and clean and include things like keeping the property clean and clearing away fallen leaves and branches. For exact details, check out our ultimate residential property maintenance checklist for landlords.
Extra work that must be done, like important repairs that call for finding qualified tradespeople in the area, may cost you more.
5. Additional Property Management Fees
The following charges in this list may or may not be included in your property management company’s monthly services, so they may cost extra.
Tenant Placement Or Eviction Fees
Fees that involve finding and placing tenants into your properties may include:
- Costs to cover marketing for tenants
- Vetting potential renters
- Helping tenants move in and out
- Evict or remove any of your tenants
Contract Termination Fee
This property management cost is charged when you terminate your contract outside the set/agreed time period. Your contract will more than likely have the potential fee explained to you, so there’ll be no surprises.
Property Management Made Easy: How Harper Properties Charge Fees
At Harper Properties, your peace of mind is our priority.
- Our simplified property management fees for Auckland only cost $45 per inspection and a competitive 8.5% monthly rate.
- No letting fees, maintenance fees, or add-ons! Clear, fair, and hassle-free property management tailored to your needs.
Our property management cost covers:
- Compliance with all relevant local legislation.
- Thorough property inspections.
- Use of high-end tech for background checks, credit checks and inspection reports.
- Highest level marketing – From professional photos to boosted listings on TradeMe and Realestate.co.nz
- Finding high-quality tenants in Auckland through a comprehensive selection process
If this is the kind of property management fee you’re keen on, give us a call at 09 361 2810 or email auckland@harperproperties.co.nz and we’ll give you a quick rental appraisal.
Are Property Managers Worth It? The Cost-Benefit Analysis Of A Property Management System
To put it simply, yes, property managers are worth the investment. While your situation may differ from others, most landlords find that an experienced property manager’s help is significantly beneficial.
Their help can make your job much easier and less stressful, improving your overall quality of life. In fact, using a property manager can maximise your rental income and reduce vacancy rates by up to 50%.
Keep these key points in mind as you look for an affordable and useful property management company in Auckland:
- Your management company could charge a fixed monthly fee that does not change, or they could charge a rate based on the rent you collect from your tenants.
- Not every management company is the same, and many have their own way of charging their clients. Absolutely always check how your company charges for their services before you agree to pay.
- Most landlords find that having a skilled property manager to help them is well worth the money they cost.
These eight benefits will further convince you of the value offered by property management services.
Final Thoughts on the Structure of Property Management Fees in Auckland
- Property management companies in Auckland charge fees that include initial setup, monthly management, maintenance, and additional charges.
- Monthly management fees can be a fixed rate or a percentage of the rent, typically ranging from 6-10% for Auckland properties.
- Maintenance fees cover property upkeep, while additional charges may include tenant placement or eviction fees.
- Harper Properties offers a transparent fee structure, with $45 per inspection and a competitive 8.5% monthly rate, covering compliance, thorough inspections, comprehensive tenant screening and marketing on TradeMe and Realestate.co.nz
- Partnering with a property manager can increase your rental income while lowering vacancy rates by up to 50%.
As one of Auckland’s leading property management companies, Harper Properties is ready to help property owners just like you. Our friendly team of managers has many years of combined experience, and we’d love to use it to make your job – and life – better.
We do our absolute best to ensure you are completely satisfied with our services, and we’d be delighted to talk with you about how we can help. If you have any questions or want to start working with us today, you can easily reach us through our website or at 09 361 2810.