When choosing a management company, it’s important to know what service you will receive for your money. It’s no secret that it’s a competitive market and everyone is taking closer looks at their finances due to industry and market pressures, but what is the cost of professional property management for a residential rental? Sometimes its not just financial costs that need to be considered. The cost of NOT using a professional company in a legislative industry can be the most expensive cost.

Let’s breakdown some of the costs of residential rental property management:

Management Packages:

Property Management companies usually charge a percentage fee of the residential rental income to owners as well as add-on fees associated with the day-to-day management of a property. At apm we have management packages catered to suit most properties/owners from no frills with add-ons available, to all inclusive.

If you have an Auckland based rental property, we have five different management packages available – Bronze, Silver, Gold, Platinum, and Platinum Plus.

If you have a Waiheke Island based property then we have four different management packages available – Ruby, Emerald, Diamond, and Diamond Plus.

Our packages are tiered, offering different service levels depending on what property owners want or need for their property, and the fees are linked to the differing options.

Typical Costs For Residential Rental Properties:

Managing a rental property takes a lot of resources in order to meet obligations around regulations. Property Management fees are generally recouped from rental income and show on an owner’s monthly statement.

Costs of rental property management include:

• Management Fees (e.g. percentage of rental income, varies dependent on management package).
• Inspection Fees (e.g. $65.00 per inspection, per property, about 3-4 per year).
• Maintenance Fees (e.g. at cost or cost + % fee dependent on management package).
• Compliance/ Administration Fees (e.g. about $20 per property, per month).
• Marketing Fee (e.g. $688 + GST as and when a tenant vacates/advertising is needed. Includes due diligence, viewings, bond lodgement, advertising the property, tenant liaison, credit checks etc).

Often what services are included or what services are paid for are outlined in the management package that you choose.

Cost Breakdown:

Management fees are a percentage so actual costs are dependent on the property and the rental amount but below is a brief example of a rental property cost breakdown for a week, generally breakdowns are sent via a monthly statement.

Other considerations and outgoings which would show on monthly statement:

• Added costs dependent on Management Package chosen e.g. Inspections, Tribunal Attendance, Annual accounts/Tax returns, IRD audit insurance, Marketing Fee.
• Putting money aside for maintenance (Property Management companies can often do this for you to build and hold a lump sum of your choice – good for unexpected repairs/expenses).
• Paying other fees: e.g. BC Levies, Rates (these can come out of your rental income and paid directly to the Body Corporate or Council).

At apm, we make payments to owners monthly on the first working day of the month, and/or mid-monthly.

apm has it all taken care of when it comes to property management. Operating since 1991 and with over 2300 landlords trusting us with their rental properties, we know a thing or two about helping property owners get the most out of their property. Our experienced team keep up to date with the latest regulations, software, and market rates to ensure a smooth management of your property.

Chat to our residential team today to discuss what management option is best for your rental property.