Choosing a property manager isn’t just about finding the lowest management fee.
In fact, focusing solely on the percentage can sometimes lead landlords down the wrong path.
Property management companies structure their fees differently. Some bundle services together, while others charge separately for inspections, maintenance coordination, tenant placement, advertising, and a range of other services.
That’s why two companies with very similar management fees can end up costing very different amounts over the course of a year.
If you’re comparing property managers, here’s what you should be looking at.
Don’t Focus on the Management Fee Alone
The management fee is usually the first number landlords see when comparing providers.
Typically charged as a percentage of collected rent, this fee covers the day-to-day management of your property, including communication with tenants, rent collection, financial reporting, and ongoing administration.
While it’s an important number, it doesn’t tell the whole story.
A company advertising a lower management fee may charge additional fees elsewhere. Another company may charge slightly more but include services that would otherwise attract extra costs.
The key is understanding the complete fee structure, not just the headline percentage.
What Services Are Usually Included?
Every company is different, but standard property management services often include:
- Rent collection and arrears management
- Tenant communication
- Owner reporting and statements
- Routine administration
- Maintenance coordination
- Compliance monitoring
- General tenancy management
Before comparing fees, ask for a clear breakdown of exactly what’s included.
Additional Fees You May Encounter
Not all property managers charge these separately, but they’re worth asking about.
Tenant Placement or Letting Fees
Finding a new tenant takes time and resources.
This often includes:
- Advertising the property
- Conducting viewings
- Processing applications
- Reference checks
- Preparing tenancy documentation
- Organising move-in procedures
Some companies charge a separate letting fee, while others include some or all of these services within their pricing structure.
Advertising Costs
Vacant properties need exposure. Ask where your property will be advertised and whether advertising costs are included or charged separately.
Professional marketing can help reduce vacancy periods and attract stronger applicants.
Routine Inspection Fees
Regular inspections help identify maintenance issues early and ensure the property is being well cared for.
Some companies include inspections as part of their management service. Others charge separately for each inspection conducted.
Entry and Exit Reports
Detailed condition reports at the start and end of a tenancy can be invaluable if disputes arise.
Understanding whether these reports attract separate charges is worthwhile when comparing providers.
Maintenance Coordination
When repairs are needed, someone has to organise quotes, liaise with trades, communicate with tenants, and ensure the work is completed properly.
Some property managers include this service as part of their management fee. Others charge a separate administration or maintenance coordination fee.
Tribunal Support
Most tenancies run smoothly. Occasionally, however, issues escalate.
If a matter ends up at the Tenancy Tribunal, it’s worth understanding what support your property manager provides and whether additional charges may apply.
The Cheapest Option Isn’t Always the Best Value
Property management isn’t simply collecting rent once a week.
A good property manager can help minimise vacancies, identify quality tenants, stay on top of compliance obligations, coordinate maintenance efficiently, and resolve issues before they become costly problems.
Saving a small percentage on management fees may not feel like much of a win if communication is poor, vacancies increase, or problems aren’t addressed quickly.
When comparing providers, consider both cost and capability.
Questions to Ask Before You Sign
A few simple questions can help you compare providers more accurately:
- What is included in your management fee?
- Are routine inspections included?
- Do you charge separate letting fees?
- Are advertising costs additional?
- Is maintenance coordination included?
- What happens if a tenancy matter goes to Tribunal?
- Are there any administration fees or annual charges?
- Are there any fees if I decide to sell my property?
A reputable property manager should be able to answer these questions clearly and transparently.
Compare the Whole Package
The best property management relationship isn’t necessarily the cheapest.
It’s the one that gives you confidence your investment is being looked after properly, your tenants are being supported, and issues are being managed proactively.
When comparing property managers, take the time to understand the complete service offering, not just the management percentage.
A transparent fee structure, strong communication, and reliable service often provide far greater value than simply choosing the lowest number on a proposal.
Looking for a Property Manager in Wellington?
At Manage My Property, we believe property management fees should be easy to understand, with no surprises hiding in the fine print.
If you’re comparing providers or simply want a second opinion on your current arrangement, our team is happy to talk through your options and help you understand exactly what you’re paying for.