The rent
A percentage weighs more on a high rent. On a high rent, ask for a lower rate or a flat fee.
Property management fees: how much a property manager costs.
Most property managers charge 8 to 12% of the monthly rent, plus a leasing fee each time a new tenant signs. Here is every fee on the schedule, what is normal, and what a year really costs.
Every fee on the schedule.
| Fee | Typical range | When you pay it | What to check |
|---|---|---|---|
| Monthly management fee | 8 to 12% of rent collected, or a flat $100 to $200 | Every month the unit is rented | Whether it is charged on rent collected or on rent due |
| Leasing fee | Half to one month of rent | Each time a new tenant signs | What happens if the tenant leaves in the first months |
| Lease renewal fee | $0 to $300 | When a tenant renews | Whether a renewal that changes nothing is billed |
| Setup fee | $0 to $300 | Once, at the start | What it pays for: inspection, photos, account |
| Maintenance markup | 0 to 10% of vendor invoices | With each repair | The amount the manager can spend without calling you |
| Eviction handling | $200 to $500, plus court and attorney costs | Only if it happens | Who files, and who pays the attorney |
Typical US ranges. Every company listed on WayImmo shows its own fee schedule.
What a year really costs.
Your first year
$3,900
- Management, every month
- $200
- Management, over the year
- $2,400
- Leasing fee, once
- $1,500
- You keep
- $20,100 of $24,000
Before repairs, renewal and setup fees.
Percentage of rent, or flat fee?
A percentage of the rent
- 8 to 12% of the rent collected
- The manager earns more when your rent goes up
- Nothing to pay on a month with no rent, when the fee is on rent collected
- Costs more on a high rent
A flat monthly fee
- $100 to $200 a month, whatever the rent
- The same bill every month
- Cheaper on a high rent
- Often charged while the unit is empty, with more services billed apart
What moves the price.
The number of units
Managers often lower their rate for several units or a whole building.
The services included
Inspections, an eviction plan or a rent guarantee are sometimes inside the fee, sometimes billed apart.
The city
Rates follow local rents and competition. Each city page shows the median fees of its companies.
Five lines to read before you sign.
Rent collected, or rent due
A fee on rent due is charged even when the tenant has not paid, or when the unit is empty.
Ask Is your fee charged on rent collected?
The guarantee on the leasing fee
If the tenant leaves or is evicted in the first months, a good contract places the next one at no charge.
Ask How long do you guarantee a tenant you placed?
The markup on repairs
A markup can pay for the coordination. It should be written in the contract, with a spending limit.
Ask What is your markup, and above what amount do you call me?
The way out
The notice period and the termination fee decide what a bad choice costs you.
Ask Can I leave with 30 days' notice, without a fee?
The reserve
Most managers hold a reserve for repairs, often a few hundred dollars per unit.
Ask How much do you hold, and when do I get it back?
Fees in your city.
Each city page shows the median fees of its property managers, and the whole fee schedule of every company.
Questions about fees.
How much does a property manager cost?
Most property managers charge 8 to 12% of the monthly rent, or a flat $100 to $200 a month, plus a leasing fee of half to one month of rent when a new tenant signs. On a rent of $2,000, that is $160 to $240 a month.
What is a normal property management fee?
Around 8 to 10% of the rent collected for a single-family home. A lower rate is not always cheaper: compare the leasing, renewal and repair fees too.
Do I pay the management fee when the unit is empty?
Not when the fee is charged on rent collected. Some contracts charge on rent due or add a vacancy fee, so read that line before you sign.
Are property management fees tax deductible?
For a rental property, management fees are generally deductible as a rental expense. Check your own case with a tax adviser.
Can I negotiate a property management fee?
Yes, mainly with several units, a high rent or a long contract. Ask for the whole fee schedule first, then negotiate the lines that weigh the most.
Compare the fees of the managers in your city.
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