Should you use a property management company and how much does it cost?

11 March 2024

Property Management Company

In the realm of real estate investment, the decision to employ a property management company is pivotal for many landlords, especially those with properties in distant locations or with multiple and growing holdings. 

Should you use a property management company, and what does it cost? 

1. Professional handling of property affairs

A property management company takes on the responsibility of managing the day-to-day operations associated with your rental property. This includes tasks like finding and vetting tenants, collecting rent, handling maintenance and repair issues, and dealing with tenant complaints. In New Zealand, property managers are well-versed in the Residential Tenancies Act 1986, ensuring that all dealings are compliant with local laws. The risk of self-managing and not being up-to-date with an ever-changing and constantly evolving tenancy landscape can result in hefty fines if your property and tenancy agreement are not fully compliant with current laws and legislation. 

2. Distance management

For property owners who reside far from their rental properties or overseas, a property management company serves as the local face of your investment. This is particularly relevant in New Zealand, where a significant number of landlords live outside the country or in different cities from where their property is located.

3. Time-saving

Managing property can be time-consuming, especially for those who have other jobs or commitments. Property management companies take the burden off your shoulders, allowing you to focus on other aspects of your life or investment portfolio.

Considerations. 

1. Cost vs. benefit

The primary consideration is whether the benefits of hiring a property management company outweigh the costs. This is a personal assessment and varies depending on your individual circumstances, including the number of properties you own, your familiarity with the real estate market, and your availability.

2. Selection of the right company

Not all property management companies offer the same level of service. It's crucial to conduct thorough research, read reviews, and potentially get recommendations from other property owners, especially those in New Zealand, to find a reliable and efficient company.

How much does it cost?

In New Zealand, property management fees are typically charged as a small percentage of the weekly rent. Hammond & Co is a full-service property management company. However, we do also have options for casual services if you need help finding a tenant and organising a tenancy agreement but wish to manage your property long-term. Owners will find the costs involved are effective and well worth the benefits and free time they get in return. 

For specific figures and a detailed breakdown of property management costs in New Zealand, you can book a free appraisal with us via our website. 

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Gina Colcord

Business Manager

Gina Colcord is an experienced Business Manager in property management with over 15 years of experience. She has worked across various property types and has been recognised for her achievements, including being a finalist for the REINZ Business Development Manager Award in 2020 and previously winning the LJ Hooker National Award for Best Property Investment Management in NZ.

You can contact Gina on 027 266 8367 or emailing gina@hammondandco.nz