Landlord Guides
Property Management Fees
The management percentage is the number everyone quotes. It's usually not the number that decides what you pay.
Why Two "10% Managers" Cost Different Amounts
Management companies compete on the headline percentage because that's what owners shop on. The difference between a good deal and a bad one usually sits in the ancillary fees underneath — particularly placement fees when a tenant turns over, and markups on maintenance work.
A manager at a lower percentage who charges a full month to place a tenant and adds a markup to every repair can easily cost more over a year than one charging a point higher with neither. Compare total annual cost on a realistic scenario, not the rate card.
Every Fee to Ask About
Management fee
Typically: A percentage of collected rent, or a flat monthly amount
Watch for: Check whether it's on rent collected or rent due. On rent due, you pay even when the tenant doesn't.
Leasing / tenant placement
Typically: Often a portion of one month's rent, sometimes a full month
Watch for: This is where high tenant turnover gets expensive. Ask what it costs if a placed tenant leaves in six months.
Lease renewal
Typically: A smaller flat fee or a fraction of a month's rent
Watch for: Reasonable in principle — renewals take work — but should be far below a new placement fee.
Setup / onboarding
Typically: A one-time fee per property
Watch for: Frequently negotiable, especially if you're bringing several units.
Maintenance markup
Typically: A percentage added to contractor invoices
Watch for: The least visible fee and often the most costly. Ask directly whether they mark up repairs, and by how much.
Vacancy fee
Typically: A reduced monthly charge while a unit sits empty
Watch for: Worth pushing back on. It pays the manager during precisely the period they haven't delivered.
Eviction handling
Typically: A flat fee, plus legal costs passed through
Watch for: Clarify what's included and what's billed on top.
Fee structures vary by market, property type, and portfolio size. Treat these as the categories to ask about rather than as quoted rates.
Or Do It Yourself
A management fee buys you three things: someone to answer the phone, someone to chase the rent, and someone who knows a plumber. If you can cover those yourself, software handles the rest for a fraction of the cost.
The honest counterpoint: managing your own rentals is a real job with real unpleasant moments, and plenty of owners conclude the fee is money well spent. Decide on time and temperament, not just arithmetic.
Frequently Asked Questions
How much do property management companies charge?
The headline management fee is most commonly a percentage of collected rent, typically in the high single digits to low teens, though flat monthly fees exist too. Single-family homes usually sit at the higher end of the percentage range and larger multifamily buildings at the lower end, because the work per unit falls as the building gets bigger. The headline percentage is rarely the whole cost.
What other fees do property managers charge?
The common additions are a leasing or tenant-placement fee when they fill a vacancy, a lease renewal fee, a setup or onboarding fee, a maintenance markup on contractor invoices, an eviction handling fee, and sometimes a vacancy fee that continues while the unit is empty. Any of these can outweigh a difference of a point or two in the management percentage.
Is a percentage or flat fee better?
A percentage aligns the manager with your rent — they earn more when the unit is occupied and the rent is higher. A flat fee is more predictable and can be cheaper on a high-rent property, but it removes that alignment. For most owners the alignment of a percentage is worth more than the predictability of a flat fee.
Should I self-manage instead?
It depends on proximity, time, and temperament more than on the numbers. If you live near the property, can take a maintenance call, and are comfortable enforcing a lease, self-managing with software costs a fraction of a management fee. If you own out of state, have a demanding job, or dread the confrontation of collecting late rent, a manager is usually worth what they charge.