Debt Collection Costs

Sample debt collection costs and time taken for using a property manager are displayed below. Compare these debt collection costs with using a debt collection company.

Property manager 8% commission on a debt of $1500 = $120 + GST


Time taken

Cost recovery

  1. Ring debtor (ex tenant) and make arrangement to pay by instalments

15-30 minutes


  1. Ring debtor up every time they miss payment

10 minutes +++++ every time


  1. Make out the order for examination and go to a JP or Court to swear and lodge

60 minutes

Nil - except the $108.80 Court filing fee

  1. Remember to diary a Phone call to the Court to ensure they have served debtor– no recovery

15 minutes


  1. Go to Court

90 minutes including travel

Nil – for time  Nil for travel

  1. Apply for warrant to arrest if debtor fails to appear

Included above per para 3


  1. Ring Court up to ensure warrant to arrest being auctioned

15 minutes


  1. Go to Court when called by Court – must be there in 30 minutes or they will let debtor go

60-90 minutes including travel if they are arrested by your closest Court -


  1. Total cost recovery

270 minutes +++ = 4.5 hours min.



How much does your property manager cost you and are you recovering their costs at $26 per hour?

Are you mad – of course not?
Current Awarded Costs

for Debt Collection Companies

As awarded by Ministry of Justice as from 1.10.10

That can be recovered from debtors (ex tenants)

Order for examination


Solicitor’s preparation of order for examination


Solicitor’s appearance at examination hearings (per hearing)


Usual total if debtor appears at first examination hearing




Solicitor’s preparation of warrant to arrest


Solicitor’s appearance when debtor arrested


Total added to debt and recovered from debtor




Sure these costs have to be paid upfront by the debt collection company but at least we can recover them

- even at $10 per week

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