Property Management Pricing Explained
How management companies usually charge, and what to compare before you sign
Most management companies charge a share of the rent they collect, a flat monthly fee, or a mix of the two, with separate fees for finding tenants and renewing leases. The headline rate tells you little until you know what it includes.
The three structures below are the ones owners run into most often. Use them to line up written proposals from different managers side by side.
Three Common Fee Structures
What each one usually covers, so you can compare like with like
Tenant Placement Only
- Marketing the vacancy
- Showings and applications
- Tenant screening
- Lease signing and move-in
- No ongoing management afterward
- Ask whether a re-leasing fee applies
Full-Service Management
- Rent collection and monthly statements
- Maintenance coordination
- Regular property inspections
- Tenant communication
- Choosing and overseeing contractors
- A named manager for your property
- An after-hours emergency line
Portfolio Agreement
- Several buildings under one agreement
- Volume rates with contractors, where the manager has them
- More frequent inspections
- Oversight of larger capital projects
- Owner reporting across the portfolio
- Yearly budget and planning meetings
- Terms set building by building
Questions to Ask About Any Manager's Fees
Who Does the Repairs
Ask which contractors the manager uses, how they were checked, and whether the manager adds a markup to their invoices.
- Licensed and insured contractors
- Background-verified service providers
- Quality-monitored performance
- Any markup on contractor invoices
Who Checks the Work
Ask who looks at a repair before the invoice is paid, and what happens when a job has to be redone.
- Work completion inspections
- Warranty coordination
- Dispute resolution support
- Ongoing contractor evaluation
Frequently Asked Questions
Often. Many managers charge a one-time fee to set up a new property, and some waive it for larger portfolios. Get it in writing next to the monthly rate so the first-year cost is clear.
Most managers allow it. Ask when a change takes effect and how the fee is adjusted for a partial month.
Most managers take their fee out of the rent they collect and send the owner the balance, with each deduction listed on the monthly statement.
Agreements vary. Before you sign, find the cancellation notice period and any fee for ending the agreement early.
Comparing Proposals From Managers?
Send us the fee schedules you are weighing and we will point out the lines worth a second question.