Here’s how much different property management can cost
Property managers generally fall into three categories or tiers:
Tier 1: Budget / low-cost companies
These companies prioritise affordability by offering stripped-back services at a lower price point.
So, you’ll typically pay a flat monthly fee or a management fee at the lower end of the market. This can start around the 6% - 7% + GST mark.
But often these companies will use the ‘plus-plus’ model, so there are often extra charges tacked on for inspections, tenant checks and other essentials.
WeRent is a good example of a low-cost model done thoughtfully. They ask their team to work from home and avoid high overheads. That way they don’t have to pay for office space.
This helps them offer lower fees. They’re also upfront that it’s a transactional service, not a high-touch experience. That works for some, but not all.
Then there are models like Kit, which launched with the promise of property management from just $10 a week.
While the idea was innovative, the execution didn’t quite land. The service was so pared back that landlords found themselves managing inspections themselves.
This totally defeats the purpose of having a property manager to begin with. The company then got shocking reviews.
Pros: Affordable, the good ones are transparent about limitation.
Cons: Less support, fewer checks and balances, may require more landlord involvement
Good for: Cost-conscious investors, DIY-inclined landlords, or those with low-maintenance properties.
Tier 2: Mid-range full-service companies
Tier 2 is mid-range. These companies offer full services. This is where the majority of traditional property management firms sit.
The fees will usually range between 7.5% and 8.5% plus GST, along with a tenant sourcing fee (typically one week’s rent).
Some companies will charge additional fees, while others bundle more into their base rate.
These companies are typically larger, with:
- More structured processes
- Established systems
- Trained property managers
They offer a reliable level of service – enough to give landlords peace of mind without the price tag of a premium provider.
Examples in this tier include:
Pros: Good service quality, fair value, suitable for hands-off investors
Cons: Some still use the “plus-plus” model, so total cost can vary
Good for: Most residential property investors looking for a balance between service and cost.
Tier 3: Premium companies
These property managers focus on tailored service, niche market expertise, or short-term accommodation.
Their fees start around 10% plus GST, and go up to 15–20% for Airbnb-style management.
A great example is Housemart, a Queenstown-based firm specialising in high-end rentals.
These guys are detailed, responsive, and designed to protect premium assets. They also operate in Queenstown, where it is more expensive to run a company.
Short-term rental (Airbnb) managers also fall into this category.
They handle everything from bookings and guest support to cleaning and linen turnover. That takes a lot more work, so their fees are higher.
Pros: Personalised service, ideal for unique properties or portfolios
Cons: Higher cost, may be overkill for standard residential investments
Good for: Airbnb owners or property investors in specific regions like Queenstown.
