Why Crockers uses a monthly administration fee instead of a letting fee
Vacancies can be a stressful and expensive time for landlords. There's potentially lost rental income between tenancies, along with the costs involved in finding and securing a new tenant.
At Crockers, we don't believe that's the ideal time to charge a landlord another week's rent just for finding a replacement tenant.
Instead, we offer a fixed monthly administration fee of $24.90 plus GST, allowing landlords to spread those expenses throughout the year.
It doesn't matter how many times a property becomes vacant or needs to be re-let. There's no additional letting fee.
And the administration fee covers considerably more than finding a new tenant. It includes advertising on our standard platforms, viewings, background and credit checks, ingoing and outgoing inspections, and attendance at Tenancy Tribunal hearings if required.
These are services landlords may otherwise be charged for separately, particularly when tenants change.
By including them in one predictable monthly fee, landlords avoid a range of additional leasing-related charges at a time when they may already be experiencing reduced rental income.
We do offer landlords the option of paying a traditional letting fee instead. However, the overwhelming majority choose our monthly administration fee because they appreciate knowing what they'll pay, regardless of how often tenants change.
It's a straightforward approach that provides greater financial certainty.
How do Auckland property management fees compare?
Most property management companies charge a percentage of rent collected. The comparison below is indicative, as fees and inclusions vary between providers.
SERVICE | COMMON MARKET APPROACH | CROCKERS AUCKLAND |
Management fee | Published guides commonly quote 7% to 12% + GST | 7.5% + GST for new clients |
Letting fee | Often around one week's rent + GST per tenancy | No separate letting fee |
Leasing administration | May be included or charged separately | $24.90 + GST monthly |
Tenant background and credit checks | Some providers charge separately | FREE |
Ingoing and outgoing inspections | May be included or charged separately | FREE |
Routine inspections | Often charged separately | $50 + GST |
Tenancy Tribunal attendance | Additional charges may apply | FREE |
A company charging 6% might seem considerably cheaper than one charging 7.5%. But what if it also charges separately for inspections, credit checks, tenant placement and other services?
The important thing is to compare the full cost of the service rather than the management percentage alone.