Skip to main content
Property management fees vary by service level, property type, location, and company. Understanding fee structures helps owners compare options and anticipate total management costs. Most managers charge a combination of ongoing fees and transaction-based fees.
Property management fees vary significantly by location and provider. The ranges below represent typical industry structures as of 2024-2025, but actual rates depend on your market, property type, and specific provider. Always get quotes from multiple managers for accurate comparison.

​
Common Fee Structures

Most common structure for residential management.How it works:
  • Manager charges percentage of collected rent
  • Fee only applies when rent is collected
  • Typical range: 8% to 12% of monthly rent
Example:
  • Monthly rent: $2,000
  • Management fee (10%): 200/month
  • Annual cost: $2,400
Aligns manager incentive with keeping property rented and rent collected.
Fixed amount regardless of rent level.How it works:
  • Set monthly fee
  • Same fee regardless of rent amount
  • May adjust annually
When used:
  • Higher-rent properties (where percentage would be excessive)
  • Lower-rent properties (where percentage wouldn’t cover costs)
  • Simplified billing preference
May or may not apply during vacancies.
Combination approaches:
  • Base fee plus percentage
  • Different rates for different services
  • Tiered percentages based on rent level
  • Performance bonuses
Common for portfolios or custom arrangements.

​
Standard Fees

Ongoing fee for management services.Residential properties: Typically 8% to 12% of collected rent. The national average is approximately 8% to 10%.Minimum monthly fees often apply for lower-rent properties.Multi-family, commercial, and specialty properties have different fee structures. Request quotes for your specific property type.
One-time fee when placing new tenant.Typical range: 50% to 100% of first month’s rentCovers marketing, showing, screening, and lease execution. May be prorated if tenant leaves within a specified period.
Fee for renewing existing tenant.Fees vary significantly by location and provider. Some managers charge a flat fee, some charge a percentage of rent, and some include renewals in the monthly management fee.Generally less than placement fee since less work is involved.
One-time fee when starting management.Covers initial property assessment, document setup, system entry, and initial inspections.Fees vary significantly by location and provider. Some managers waive this fee.

​
Additional Fees

Fee for handling maintenance.Common structures:
  • Markup on contractor invoices (often 10% to 20%)
  • Per-work-order fee
  • Included in monthly management fee
Covers time coordinating, dispatching, and following up on repairs. Clarify this fee structure before signing.
Fees for property inspections.
  • Move-in/move-out inspections
  • Periodic inspections
  • Drive-by inspections
Fees vary significantly by location and provider. Some include inspections in management fee.
Fees for handling evictions.Fees vary significantly by location and provider. May include:
  • Eviction coordination fee
  • Court appearance fee
  • Administrative fees
Attorney fees and court costs are typically additional.
Additional fees that may apply:
  • Late rent collection fee
  • Advertising/marketing fee
  • Technology/portal fee
  • Bill payment fee
  • Year-end accounting fee
  • Early termination fee
Review the management agreement carefully to understand all potential charges.
Not a fee, but a cash requirement.
  • Held for emergency repairs and expenses
  • Replenished when used
  • Returned when management ends
Amount varies by manager and property. Clarify expectations upfront.

​
Understanding Total Cost

To estimate total management cost:
  1. Monthly management fee x 12 months
  2. Add expected leasing fees (based on turnover)
  3. Add renewal fees
  4. Add estimated additional fees
  5. Factor in maintenance markups if applicable
Turnover significantly increases annual cost due to leasing fees and vacancy.
When comparing managers:
  • Calculate total estimated annual cost, not just monthly percentage
  • Ensure you’re comparing same services
  • Understand what’s included vs extra
  • Ask about typical additional charges
  • Consider service quality, not just price
Lower percentage doesn’t always mean lower total cost.
Review contracts for:
  • Fees during vacancy
  • Cancellation fees
  • Per-communication fees
  • Administrative fees
  • Required vendor usage
  • Automatic renewal clauses
  • Fee increase provisions
All fees should be clearly documented in the management agreement.

​
Negotiating Fees

Commonly negotiable items:
  • Management percentage (especially for multiple properties)
  • Leasing fees
  • Setup fees
  • Renewal fees
  • Contract terms
Managers are more flexible for desirable properties and portfolios.
Factors that strengthen negotiating position:
  • Multiple properties
  • Well-maintained property
  • Desirable location
  • Long-term commitment
  • Current reliable tenant in place
  • Willingness to sign longer contract
Focus negotiations on:
  • Fees that occur frequently (monthly, turnover)
  • Large one-time fees (leasing)
  • Fees that compound (maintenance markup)
Small per-occurrence fees matter less than recurring costs.

​
Fee Red Flags

Very low fees may indicate:
  • Hidden fees elsewhere
  • Inexperienced manager
  • High volume, low service model
  • Fees recovered through other charges
  • Short-term introductory rate
Understand how they make money if fees seem too low.
Watch for:
  • Fees for routine communications
  • High markup on every service
  • Multiple fees for same activity
  • Non-refundable reserves
  • Unreasonable cancellation penalties
  • Vague fee descriptions
  • Fees not in writing

​
Value vs Cost

Higher fees may be justified by:
  • Better tenant screening (fewer evictions)
  • Faster leasing (less vacancy)
  • Higher tenant retention
  • Better maintenance (preserved value)
  • Accurate accounting
  • Legal compliance
  • Time savings
Consider total return, not just fees:
  • Vacancy rate and days to lease
  • Tenant quality and retention
  • Rent optimization
  • Maintenance cost control
  • Owner time saved
A manager with higher fees but lower vacancy and better tenants may deliver better net returns.

Next: Owner Responsibilities

What owners still handle when using a property manager

Find Property Managers

Research property managers in your area