What is a good rental yield in NZ?
Property Management
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Property Management
If you’re investing in property, rental yield is one of the first numbers you'll want to understand. It gives you a quick snapshot of how well your investment is performing, but what’s considered “good” depends on where you buy, what you buy, and your long-term goals.
In 2025, a good gross rental yield in New Zealand ranges between 3% and 8%. In urban centres like Auckland and Wellington, yields tend to sit lower - between 3-4% - while in regional areas like Manawatū or Timaru, investors may achieve 5.5% or more.
But rental yield isn’t everything. High yields can be offset by poor tenant demand, higher maintenance costs, or low capital growth. That’s why it pays to speak to someone who knows the market. Use our rental yield calculator or talk to a Property Brokers property manager to understand what a good return looks like in your area.
“In the Manawatū, we usually aim for a gross yield of around 5.5% on well-managed properties,” says one Property Brokers property manager. “But yield is only part of the story - we work with our investors to build a strategy that fits their long-term goals.”
Rental yield measures the income your property generates compared to its value. It’s usually expressed as a percentage.
Unlike capital gains, which can be speculative, rental yield provides a consistent metric for tracking return on investment. At Property Brokers, we use yield in appraisals, rent reviews, and when helping clients decide whether to buy, hold, or sell.
Learn more about our property management services and how we help investors maximise returns.
Here’s a rough guide for 2025:
In places like Taranaki or Hawke’s Bay, yields at the higher end of the spectrum are more common—but that doesn’t mean they’re automatically better. A high yield might signal risk, especially if the property struggles to attract long-term tenants or incurs more frequent repairs.
Want help choosing where to invest? Read our guide on the best places for property investment in NZ.
Yield is a great decision-making tool, but it shouldn’t be used in isolation.
Your total return includes yield, capital gains, and cash flow. A balanced portfolio typically considers all three.
Many variables affect rental yield. These include:
Check out our Healthy Homes checklist and renovation resources to learn more.
Looking to boost your yield? Here are some proven strategies:
Need expert help? Book a free rental appraisal to see where you stand.
One recent Property Brokers client improved their net yield by nearly 1.2% after a minor bathroom upgrade and rent review. These are the sorts of gains that add up over time.
At Property Brokers, we manage over 8,000 properties across regional New Zealand. We know yield matters—but it’s just one piece of the puzzle.
Our nationwide network and local specialists help investors:
We’re your long-term partner in property investment.
Wondering if your investment property is pulling its weight?
Whether you’re new to investing or managing a growing portfolio, Property Brokers is here to help you make smart, strategic decisions.
From the top of the North through to the deep South, our salespeople are renowned for providing exceptional service because our clients deserve nothing less.
Managing thousands of rental properties throughout provincial New Zealand, our award-winning team saves you time and money, so you can make the most of yours.
With a team of over 850 strong in more than 88 locations throughout provincial New Zealand, a friendly Property Brokers branch is likely to never be too far from where you are.
