When a 7.5% Property Management Fee Isn’t Really 7.5%

This week, we completed a real-life comparison for a landlord comparing us with another Hamilton property management company. Her experience highlights a common problem across the industry.

Same property.

Same service.

$547 cheaper with Waikato Real Estate.

Here’s why.

The Hidden Cost of Cheap Property Management Fees in NZ

On paper, a 7.5% management fee looks attractive - especially to first-time or cost-conscious investors.

But here’s the problem:

That fee is rarely the whole fee.

In this landlord’s case, the “7.5%” quickly ballooned to 9% once the add-on charges were applied -  charges that many NZ property managers don’t make obvious upfront.

The Hidden Fees Many Landlords Don’t Realise They’re Paying

Across New Zealand, many property management companies charge extra for routine tasks that most landlords assume are included.

This landlord was paying additional fees for:

• Maintenance coordination fees

• Routine inspection fees

• Trade Me advertising fees

• Photography and marketing fees

• Lease renewal fees

• Administration fees

There was a fee for everything.

When these were added together across the year, the true cost of management was significantly higher than the advertised rate - a situation we see all too often with new clients joining us.

Why Waikato Real Estate’s 8.25% Fee Is Actually Cheaper

At Waikato Real Estate, our 8.25% + GST property management fee is genuinely all-inclusive.

That means:

• No inspection fees

• No advertising or Trade Me fees

• No maintenance coordination fees

• No lease renewal fees

• No admin charges

• No surprise fees on your statement, ever

You pay one simple, transparent fee, and everything else is included.

This is how we saved this landlord $547 in a single year, even though our headline fee was slightly higher than the competitor’s.

Trusted by Hamilton Landlords: Award-Winning Property Management

Lower cost is meaningful - but cost should never come at the expense of service.

The landlord who compared fees didn’t just save money; she upgraded to:

• 3× New Zealand Property Management Company of the Year

• A team with a 4.8-star Google rating from 500+ reviews

Thinking of Switching Property Managers? Or Comparing Fees First?

If you want to know whether you’re paying too much in property management fees, we’ll happily do a side-by-side comparison for you.

You’ll get:

• A clear breakdown of your current fees

• The true effective percentage you’re paying

• What your costs would be with Waikato Real Estate

• A plain-English explanation of every difference

To get started, simply send us your latest EOFY rental statement from your current property manager.

There’s no obligation and no pressure - just clarity.