Typical fee structures and real ranges
Most property managers use one of three models: percentage of rent, flat monthly fee, or a hybrid/à-la-carte pricing. For residential rentals the industry standard is:
- Percentage of monthly rent: ≈ 8%–12% (common). Lower for large portfolios; higher for single-family or hands-on service.
- Flat fee model: ≈ $100–$300/month per unit (used frequently for single-family homes/condos).
- Commercial / multifamily: ≈ 4%–12% depending on scale, services, and complexity.
- Short-term / Airbnb management: ≈ 15%–25% (often higher) because of frequent turnover and guest services; it can reach 30%–40% with premium services.
Why ranges vary: local market, vacancy rate, rent level, desired services (leasing, maintenance, 24/7 emergency response), and portfolio size.
What these fees usually cover (and what they don’t)
Typically included:
- Tenant screening and lease management
- Rent collection and accounting/reporting
- Regular inspections and maintenance coordination
- Emergency response and tenant communications
- Move-in/move-out processes and deposit handling.
Often extra (watch for hidden fees):
- Lease renewal fees or leasing commission (sometimes 50–100% of one month’s rent)
- Tenant placement fees (one-time)
- Maintenance markups (contractor management fee)
- Eviction/legal fees and court costs
- Advertising or listing costs for vacant units
- Early termination or setup fees.
Real examples — how fees work in practice
- Single-family rental, $1,800/mo, percentage fee 10%
Management fee = $180/mo → $2,160/yr. Add leasing fee if tenant turnover occurs. - Condo, $2,200/mo, flat fee $150/mo
Management fee = $150/mo → $1,800/yr. Flat fee can be better for lower-rent properties. - Multifamily building, $50,000/mo total rent, fee 6%
Management fee = $3,000/mo → economies of scale lower percentage.
How to evaluate value — not just price
Ask: What’s included? A cheaper manager that omits tenant screening, has poor maintenance control, or slow collections can cost more in the long run (vacancies, arrears, damage). Evaluate:
- Vacancy reduction track record
- Average days to lease and tenant quality metrics
- Maintenance response time and cost controls
- Financial reporting clarity and frequency
- Contract length and termination terms.
8 proven ways to lower your property management costs
- Negotiate a tiered rate — lower percentage for multiple units.
- Bundle services — combine leasing + management to get discounts.
- Choose flat fee for low-rent units to avoid percentage penalty.
- Keep good tenants — reduce leasing turnover costs.
- Pre-approve trusted contractors to reduce markups.
- Audit invoices for maintenance and vendor markups.
- Use technology-forward managers (online payments, portals) to reduce operational overhead.
- Clarify hidden fees in the contract and get them in writing.
Contract red flags to avoid
- Vague service lists with many “additional fees”
- Long automatic renewal with penalty for early exit
- Management taking unilateral authority to hire/mark up vendors without oversight
- No performance metrics or reporting cadence.
FAQ (short, searchable answers)
Q: Is 10% a fair management fee?
A: Yes — 8%–12% is standard for residential properties, but evaluate inclusions before deciding.
Q: Are there one-time leasing fees?
A: Often yes — many managers charge a leasing fee equal to one month’s rent or a percentage of rent.
Q: Should I choose flat fee or percentage?
A: For lower-rent single-family homes, flat fees ($100–$300) may save money; for high-rent or multifamily, percentage is common.
Q: Do Airbnb managers charge more?
A: Yes — short-term rental management typically runs 15%–25% because of the intensive turnover and guest services.
Final recommendation & CTA (for conversions)
Price matters — but value matters more. Present transparent fee tables on your pricing page showing exactly what’s included, plus a sample savings comparison vs. DIY or cheaper competitors. Offer a free customized fee audit (limited-time) to show landlords how much they’d save or gain in net income under your management.
