How do we price our services?
We provide a full management service where we act in your stead, buffering the stresses that often occur when you own residential rental properties. As we are owners too, you can be confident that we will always be working from your viewpoint, to give you the best returns possible.
By paying for our time as it is spent on your property, you benefit from our user pays system, where you only pay for what you are using - rather than having some properties subsidising other properties which need more time spent on them.
We aim to provide the same or better results that you would achieve if you were managing the property for yourself - without the hassle. Our software system is leading edge, and our rental account reconciled monthly with the software. Payments are made within four working days of the end of the month, statements are emailed.
All our charges are Plus GST.
How we charge our hourly rate (Standard Contract):
Included in the 5% is:
Lynnette's time overseeing the property management decisions, reviewing rents, etc
Administrator's time - checking rent in, putting transactions into management software, paying out, owners statements.
Property Manager's time - general administration, timesheets etc.
Operating Expenses such as telephones, computer hardware & software.
Charged out separately:
All Property Manager's time in actually maintaining the tenancy - eg visiting the property for whatever reason occurs, letting the property, chasing rent payments, inspections, tribunal, etc etc. (this is not a comprehensive list)
We do not charge for units of time of less than 10min per week.
We do charge for vehicle costs - the same as a plumber or electrician would. If we visit your property, there is a site fee. The standard site fee is $10.00.
This form of charging means that the bulk of the management expenses are borne by the owner at the beginning of the tenancy, and then it will usually settle into steady amounts of admin fees and inspection charges. If this style of management is not for you, we now also offer a base fee + set rate, where we have committed to providing the same level of service, for a time charge that has been estimated at an average (over the course of the year) of 15min per week, includign initial marketing time spent on property. There is a 12 month minimum term for the set rate contract. 5
Under development:
A system where there are set costs, eg marketing levy, arrears fee.
Also new set price contact with marketing fee + $30p/week
Other charges (+GST)
Maintenance Fee - 10% of invoice to cover time spend transacting the payments.
Pick Up & Delivery fee - if we purchase goods on your behalf on our account, and deliver to premises, we charge retail price, plus $20. Eg, fire extinguisher + 2 smoke alarms = $75
Initial setup fee (Standard Contract Only) - $75 which covers time spent setting up owner and tenancy into software, initial consultations with owner, photos taken for advertising, brochure for the house, etc. One per owner, not per property.
Outside costs passed on (without surcharge):
Credit checks, Mediation fees, Advertising expenses
How much does it cost to let your property?
We charge ACTUAL time spent on your house, and letting it. This includes all time spent working with your prospective tenants - including phone calls, showing the home, and doing reference checks. A good rule of thumb is approximately 6 hours, although this can vary quite a bit - either way! We then also on-charge advertising costs, and credit checks. If you were letting the property yourself, these same costs would occur, however when we do it for you, you can take advantage of our volume to keep the price lower for you.
Individual Advertising and Credit Check Costs (subject to change)
A breakdown of the costs:
Nelson Mail - 4 inserts per week, within our box ad ..............................approx $30-40pw
(depending on how many houses being advertised that week)
Trade Me........................................................................................................$79+gst
Credit Checks - includes Drivers Licence verification ...........................................$29pp
***NEW!!*** MARKETING FEE - $400 covers marketing for first month, all Hours, Credit Checks and Advertising - valued at approximately $600! (Marketing Surcharge of $150 charged at end of management contract for all contracts of less than 6 months.)
How much does an inspection cost?
Again, the costs charged are for ACTUAL time spent on the job. Time is incurred with pre-inspection letters, the time spent on the premises, and then the follow-up paperwork - letters to both tenant and owner - and recording the inspection details. Sometimes a re-inspection is necessary if a property does not meet expectations. Time spent will vary from half an hour up. In-going and Out-going inspections take longer, as a more thorough note-taking is required, and especially on a property which is new to us, as we learn its individual 'features'. A new unknown tenant needs more thorough checks than a trusted one, smaller properties will cost less than big ones, and houses with furnishings will take longer than ones without. Once again, you can take comfort from the fact we charge for ACTUAL time, and you are receiving the level of service that the property requires. Keeping our owner's perspective, inspections are done for a reason, not just to revenue gather. We visit the property every 3-4 months.
***NEW*** Set Inspection fees for all inspections including follow up inspections.
5% contracts ........$60, follow upinspections $25
8.5% contract .......$30, follow up inspections $25
Annual Maintenance Checks
Our regular property inspections include asking the tenant about any maintenance issues. We also undertake a Pre-Winter Annual Maintenance Check where we send our handyman to check gutters and drains, and ensure that all fireplaces that are being used are swept. These costs are passed onto the owner