Why I Self-Manage My NZ Rentals, and How to Compare the Options

I own four apartments in Auckland CBD: a three-bedroom, two one-bedrooms with car parks, and a one-bedroom. The path to letting them was not the textbook one. The three-bedroom started as the place my partner and I lived in with our five-month-old toddler. We kept our house but moved into the CBD apartment for convenience - it was a ten-minute walk to both our jobs, the daycare was on the way, the doctor, the supermarket, every amenity was close. We took a boarder in the spare room to help with the mortgage.

Six months later baby number two was on the way and we moved back to the house. The boarder stayed and brought a couple, then a single person, so the three-bedroom turned into a rent-by-the-room arrangement. I rented the carpark separately. With everything added up, the place was earning well above whole-of-unit market rent, and for about a year it worked - the tenants knew each other, got along, made it a social thing.

COVID hit during that year. When Auckland went into mandatory lockdowns and my tenants lost income, I halved the rent on the spot. My bank did not give me a reciprocal reduction on the mortgage interest, so I absorbed the difference out of my own pocket. The tenants remembered that. Years later some of them introduced friends who became good tenants in turn.

Then life pulled the original group apart. Once they started leaving one by one, the cracks showed: hard to find replacement tenants, inter-personal issues between strangers thrown together, rent on different schedules, constant turnover. The building also went into a planned closure window for re-cladding work, which meant nobody wanted to sign a long lease. I declined a lowball offer from a guy who wanted to sublet the unit to students at a fixed rate - the price was below market and students were not going to look after the apartment.

Once the building reopened I made a strategic decision: families only, never students, never by-the-room. The total rent would be lower than the by-room peak, but the cost of constant vacancies and inter-tenant disputes was higher than the upside. The first family signed at $800/week and stayed a year. The second family signed at $800/week and is still there. At renewal I offered $780 in exchange for a one-year signature - rents had softened a little and I valued the stability - they preferred to continue week-to-week at $800. Both of us happy.

That whole arc happened without a property manager. From the very beginning I did the maths and found out using a PM did not make financial sense in my case. Here is why, and what I learned observing fellow landlords dealing with property managers, reading horror stories in the press, and being mistreated in my early years when I was looking to rent a property for myself.

What Numbers Made Me Go Solo?

PM charge around 8% + GST of rent, plus a letting fee (one week's rent + GST) every time a tenant changed, plus inspection fees, plus a markup on every maintenance job. On 3 x 1-bed apartments averaging $450/week each, and a 3-bed for $800 that was roughly $10,300 a year in management fees alone - before any of the extras.

What was I getting for that? Someone to collect rent (which the bank does automatically via direct debit), forward maintenance requests to the same tradies I already knew, and do three inspections a year that I could do myself in two hours.

When I did the maths, I had two choices:

1. Go with a PM and pass the cost to tenants through higher rent
2. Drop the PM and either pocket the saving and/or reduce rent

I chose option 2. I reduced rent slightly - enough to be noticeably more competitive than comparable apartments - this way I could offer better rate to good tenants who would pay and take care of the property. The result: lower vacancy, longer tenancies, and better tenants who appreciated the fair deal. I was financially better off AND my tenants were happier.

How Did COVID Prove the Model?

When COVID hit in 2020 and Auckland went into mandatory lockdowns, I was able to make decisions immediately. I halved the rent for tenants who lost income during lockdown. No committee, no head office approval, no "we'll check with the landlord" - I was the landlord, and I made the call on the spot.

My tenants stayed, and some later introduced friends who became tenants. That is what happened in my case. I cannot know how a particular property manager would have responded. Owners and agents can have different decision rights and approval processes, so check who can recommend or approve a rent change and how quickly they will put a proposal to you.

Changes to interest deductibility also affected my numbers. The management fee was one cost in my own cash-flow calculation, but this experience does not show what another landlord could afford or what other owners decided to do. Rework your figures using your financing, tax position and current service costs, and ask an accountant about tax treatment.

What should you compare when choosing a manager?

A manager's process can differ by company, team and agreement. Ask about workload, applicant review, rent recommendations, contractor approvals, inspection frequency and who contacts you when a decision is needed. Our property-manager selection guide includes questions to ask before signing.

Tenant screening? Ask which checks and references the manager uses, how they assess an application, how they handle inconsistent information and what will be shared with you. As a self-manager, you need enough lawful, relevant information to make and record the decision. A property manager can offer a repeatable process, but ask what it includes rather than assuming a particular level of checking.

I screen my own tenants. I meet them. I ask questions. I check references properly - calling the employer, talking to the previous landlord, verifying the story makes sense. It takes time, but getting the right tenant means I don't hear from them for months at a time. That's the goal: a tenancy that manages itself.

Maintenance? I prefer to understand the proposed work and compare options before approving it. A property manager may coordinate access, quotes and contractors under the service agreement. Ask what spending limit applies, when you are consulted, whether coordination charges apply, and how completion is documented. You remain responsible for ensuring repairs are handled within the required time.

Inspections? Compare how often they happen, who attends, what the report contains and whether a visit is included or separately charged. If you self-manage from a distance, budget for someone to attend when you cannot.

Which routine tasks can software help organise?

For a stable tenancy, software can make recurring records and reminders easier to maintain. It does not remove the need to review exceptions, answer tenant questions, make decisions or arrange physical work.

Tenants can use their own bank's automatic payment. CSV imports or supported Xero bank feeds can help match bank transactions to scheduled rent. Review unmatched payments and any arrears notices before acting. Digital agreements reduce paper handling, but the parties still need to review and complete the agreement.

In my own quieter weeks I may spend very little time checking routine records. That is a personal estimate for four apartments, not a typical time commitment. Letting, inspections, repairs, disputes and compliance changes create additional work, and changeover work can take much longer than a routine week.

Do not compare that quiet-week estimate directly with a full PM fee: the services and time covered differ. Use a property-specific fee schedule and include your time, vacancy assumptions and any paid local help. The homepage cost comparison lets you enter those assumptions.

What Do You Need to Self-Manage?

You don't need property management experience. You need:

1. A system for tracking rent and expenses - not a spreadsheet, a proper tool that shows you arrears, sends reminders, and generates tax reports.
2. Good tenants - which means spending proper time on screening upfront instead of rubber-stamping applications.
3. Two or three reliable tradies - a plumber, an electrician, and a general handyman. You'll use them maybe 3-4 times a year.
4. Basic knowledge of the Residential Tenancies Act - specifically: how much notice for rent increases (60 days per s.24, not 90 despite what most landlord forums say), how to issue a s.55 notice (14 days for rent arrears), and what the Healthy Homes Standards require.
5. A realistic time allowance that includes occasional work, not only routine weeks.

When Is a PM Worth It?

I'm not saying PMs are worthless. They make sense if:

• You live overseas and can't attend to issues in person
• You have 20+ properties and genuinely can't manage them yourself
• You have high-maintenance properties (old houses that need constant work)
• You truly don't want to deal with people at all

But for 1-5 properties in the same city? You're paying $2,000+ per property per year for someone to do what takes you half an hour a week. And they're doing it worse than you would, because nobody cares about your property as much as you do.

What Is the Real Cost of a PM?

Time is one part of the decision, alongside tenant communication, maintenance coordination, compliance administration and having someone available when you are away. A manager's annual cost depends on rent, the signed fee schedule and which services are used. Ask for a property-specific estimate, then compare it with the time and paid help you would need to manage the work yourself.

Meanwhile, the PM:

• May offer a rent change, extra tenant search work or trade negotiation, depending on the agreement and the manager's process.
• Can arrange inspections and maintenance visits that are difficult to do remotely yourself.
• Should explain how tenant placement, renewal fees and maintenance coordination are charged.
• Needs clear instructions from you about rent decisions, approvals and the level of reporting you expect.

I built RentManager because I needed the system part: tracking rent, generating notices, filing for Tribunal when needed, managing documents. The human part: the relationship with tenants, the decisions about rent levels, the judgment calls, that is the part you should keep.

Why Is a Cheap PM Worse Than No PM at All?

A lower percentage fee can mean less time allocated to each property, but you cannot infer an individual service level from the fee alone. Ask how many properties each manager handles, who is your contact, how urgent work is escalated, what inspections include and which tasks carry separate charges. Compare those answers with your own need for in-person visits and availability.

Management fees that are a percentage of collected rent fall when rent is not collected, while the owner's lost rent is larger. This does not show that a manager wants a property to remain vacant. Ask how the manager markets a vacancy, reports enquiries and viewings, recommends rent and bills letting work. Compare their record using the same period and property type rather than assuming one management model always fills a home faster.

Choose between self-management and a PM by comparing the actual service, fees and time involved for your situation. Self-management gives you direct control, but you remain responsible for legal duties, tenant contact and arranging physical work. A PM can provide coordination and local visits, but the contract sets the scope and your responsibilities as landlord remain. See Tenancy Services on choosing a property manager.

What Scare Numbers Do Property Managers Use, and Are They True?

When a management company pitches you, the sales copy leans on a few frightening figures. I keep seeing the same ones recycled across Auckland PM websites. Here is what they actually are.

"A failed tenancy costs $3,000 to $8,000 in tribunal proceedings." The Tenancy Tribunal application fee is $28 (it rose to that on 1 July 2025). The scary number is lost rent and damage from a bad tenant, and a property manager does not make that disappear: the loss still lands on you, the owner. If you win, the Tribunal can order the other party to repay your $28. What actually prevents a bad tenancy is careful screening, the one job I never outsource.

"Healthy Homes breaches cost $4,000 each." The maximum is $7,200 in total across all breaches in a case, not per breach, and it is awarded against the landlord whether or not a manager is involved. A PM does not absorb your compliance liability. A simple Healthy Homes checklist protects you far more than an 8% fee does.

"DIY landlords lose two to three weeks of rent to vacancy every year." Vacancy varies with property, location, timing, asking rent and marketing. A blanket allowance for every self-managing landlord or every PM is not a reliable comparison. Use your own letting history where available and include a range of vacancy assumptions in any cost estimate.

These examples do not establish that self-management or a PM is the better choice for every landlord. Screening carefully, keeping compliance records and choosing rent thoughtfully matter under either approach. Compare the real service you need with the work you are prepared to take on.

If you self-manage your properties, RentManager NZ handles rent tracking, arrears reminders, Healthy Homes compliance, bond lodgement, and digital signing. From $9 per month. Nick Georgiev, RentManager NZ.