What property management actually costs

Most management companies make you call to learn their fees. That should tell you something. Pricing in this industry isn't complicated, but it's often presented as if it were, because vagueness leaves room for add-ons.

The two fees almost everyone charges

First, a leasing fee: a one-time charge covering the work of getting a qualified resident into the home: marketing, showings, screening, and lease signing. Some firms charge a flat amount; others take a percentage of the first month's rent.

Second, a monthly management fee, usually a percentage of collected rent. "Collected" is the word to look for. A fee on collected rent means the manager earns nothing when the home sits empty, so their incentive lines up with yours. A flat monthly fee gets paid whether the home performs or not.

Our own structure is published on our pricing page: a $500 leasing fee and 10% of collected rent monthly. We publish it because owners deserve to compare before they call.

Where costs hide

The advertised percentage is rarely the whole story. When you compare companies, ask directly about these:

• Maintenance markups, a percentage added to every repair invoice
• Lease renewal fees, charged when an existing resident simply stays
• Technology, statement, or "administration" fees billed monthly
• Cancellation penalties buried in the management agreement
• Fees charged on vacant units

How to compare honestly

Take a realistic year: twelve months of rent, one leasing event, a couple of repairs. Run each company's full fee schedule against it, not just the headline percentage. A low percentage with markups and renewal fees frequently costs more than a higher, cleaner one.

Then weigh what the fee buys. A cheap manager who places a bad resident or lets maintenance slide costs far more than the difference in fees. Price matters; it just isn't the only number in the equation.