How Much Does a Property Manager cost?

Property managers typically charge based on either a percentage of the monthly rent or a flat fee, depending on the type of property, its location, and the services provided.

• Percentage of Monthly Rent: The most common method is for property managers to charge between 8% and 12% of the monthly rent for residential properties. For example, if a property rents for $1,500 monthly, the management fee might be between $120 and $180 monthly. Commercial properties command the same fee but sometimes tend to have higher rates due to the additional complexities of managing them.

• Flat Fee: Property managers sometimes charge a flat fee instead of a percentage. This option is often used for smaller properties or single-family homes. A typical flat fee can range from $100 to $200 monthly, depending on the services included.

Additional Costs

Along with the base management fee, property managers may charge for additional services, such as:

• Tenant Placement Fees: Charged when a property manager finds and secures a new tenant. These fees typically range from 50% to 100% of one month’s rent.

• Maintenance and Repairs: Property managers often arrange maintenance and repairs, which add a markup of around 10% to service costs.

• Lease Renewal Fees: Some property managers charge $200 to $500 to renew a tenant’s lease.

• Eviction Fees: Additional fees apply if an eviction is required, usually covering the entire process.

How Billing Works

Billing usually occurs monthly. The property manager deducts the management fee and any additional costs—such as repairs or tenant placement—from the rent before transferring the remaining balance to the property owner. A detailed statement outlining income and expenses for that period is typically provided each month.

Use Cases

• A property management company oversees a residential apartment building with ten units, each renting for $1,200. At a rate of 10%, the monthly fee for managing the entire property would be $1,200.

• A single-family home renting for $2,000 per month is managed under a flat fee of $150 monthly. The owner benefits from consistent, predictable costs while the property manager handles day-to-day operations.

Property management fees generally range from 8% to 12% of monthly rent or a flat fee, with potential additional charges for tenant placement, repairs, and lease renewals. Property management billing is typically straightforward, with fees deducted from the rental income each month and a statement detailing income and expenses.