How much does a property manager cost?

Average cost in 20149: $85 See National

$55

low cost

$85

avg cost

$135

high cost

The average cost for a property manager is $85. You are likely to spend between $55 and $135 total. Exact price may vary depending on your area and project details.

Updated July 1st, 2017

Next Step: Find out exactly how much your project will cost.

Property management is available for residential homes, apartments, condos, commercial spaces and retail spaces. Property managers can oversee just a single unit or as many as 30 units or more, whether those sites are inhabited full-time or are vacation rentals. Property managers assist with finding tenants, collecting rent and taking care of accounting, property maintenance and repairs, on-site management, and vacation rental check-in and check-out tasks. Many factors affect the cost of property management.

Management fee (monthly)

Many property managers charge a monthly fee for overseeing rent collection, handling minor repairs and communicating with tenants. Monthly management fees for private residences are sometimes based on a percentage of the total monthly rent paid by the tenant, and sometimes they are agreed-upon flat rates. Here are two examples percentage-based monthly fees:

Leasing fee

A leasing fee, also referred to as a procurement fee, is the price that some property managers charge for finding a suitable tenant for a property. This service may include background checks, prior eviction searches, financial verifications and more. Specifics of what tasks the property manager will perform should be outlined in the contract. Here are a couple examples of leasing fees:

Vacancy fee

When a vacancy fee is indicated in the contract, it signifies the amount of money that the property owner pays to the management company when a property is vacant. Some companies have no vacancy fee, and some have a flat fee that kicks in when the property is empty (typically a lower cost than the standard monthly management fee). Others dictate vacancy fees based on "rents scheduled," which means whether or not the property owner is receiving rent, the vacancy fee is still based on what the scheduled rent would be if it was incoming. This arrangement is the least favorable situation for the property owner as they pay the same regardless.

Lease renewal

Property managers may charge no lease-renewal fee, they may charge a flat-rate, or they may charge a percentage of the rent each time a lease needs to be renewed with existing tenants. This fee is to cover the additional time and effort involved in making any lease modifications, getting tenants to sign the new lease and so on. WrightDavis Property Management does not charge a lease renewal fee, but Redleg Property Group charges a flat $150 lease-renewal fee.

Location

The region of the country where the property is located can affect the cost of property management. In cities and areas with higher rental rates, property managers will charge more for their services.

Repair funds

Management companies may ask property owners to provide reserve funds to help cover expenses for minor repairs, so that managers don’t need to contact the owner every time a small repair is needed. This fund is generally maintained at an ongoing set amount, often equivalent to one month’s rent. A contract should specify the maximum amount that a property manager can spend on a repair (for example, $200) without first obtaining approval from the owner. The owner should receive the total of this reserve fund (minus any repair deductions made) when they terminate the contract with the property manager.

Eviction fee

Some property managers may charge additional fees if they are required to evict an existing tenant.

Pro tip:

  • Be wary of hidden fees such as inspection fees or setup fees. Always be sure that the language in the contract you’re signing is clear so that you’re not overpaying for services.

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Recent reviews

Property Management Inc. Fort Lauderdale

Mie Jensen has been tremendously helpful in renting out and managing my property--providing solid service, sound guidance, constant communication, and good humor in renting out my unit to a quality tenant--all at a reasonable cost of service.

Marketplace Homes-Austin

The service response team (Carolyn Irish) quickly took care of a nest of bees that had decided to move in above the front door just before our new tenants did. We were pleased with how quickly and easily this issue was resolved to our, and our tenants', satisfaction. This seemed like a startling new concept for us when we first contacted Marketplace Homes - to let a management company in one state rent out and manage a rental property in another state - but we have been surprised and pleased, so far, with their service. We tried property management companies in the local area, and have been terribly disappointed with what passes for property management in the Canton Ohio area. Local managers, despite the promises I still see in their listings, rarely returned phone calls, rented to tenants who destroyed our property and skipped out on rent, and seemed fine with broken leases because their system of A NEW TENANT PLACEMENT FEE collected each time they have to re-rent the home INCENTIVIZES renting to bad and unreliable tenants who will skip. This is really important to note if you are considering who to let manage your property, it can cost you extra fees and dangerous repair costs. Marketplace Homes does NOT do this - they do take the first month's rent, but they guarantee that if the tenant they vet and verify breaks the lease, the owners do not have to repay the original first month's rental fee to Marketplace Homes and Marketplace will find another suitable tenant at their expense to finish the lease. So the incentive is on Marketplace Homes to place reliable tenants who pay their rent on time and do not break the lease - a bad tenant costs Marketplace Homes money, not just the homeowner - we share the risk. I understand that the concept of this - long-distance property management - may seem peculiar, but I recommend it. They do have local contacts in the Canton Ohio area who can go out and fix a bee problem, better and faster than our previous local Canton Ohio property management company. It's worth looking into, if you haven't, and worth considering, if you have.

Marketplace Homes - Metro Detroit

The service response team (Carolyn Irish) quickly took care of a nest of bees that had decided to move in above the front door just before our new tenants did. We were pleased with how quickly and easily this issue was resolved to our, and our tenants', satisfaction. This seemed like a startling new concept for us when we first contacted Marketplace Homes - to let a management company in one state rent out and manage a rental property in another state - but we have been surprised and pleased, so far, with their service. We tried property management companies in the local area, and have been terribly disappointed with what passes for property management in the Canton Ohio area. Local managers, despite the promises I still see in their listings, rarely returned phone calls, rented to tenants who destroyed our property and skipped out on rent, and seemed fine with broken leases because their system of A NEW TENANT PLACEMENT FEE collected each time they have to re-rent the home INCENTIVIZES renting to bad and unreliable tenants who will skip. This is really important to note if you are considering who to let manage your property, it can cost you extra fees and dangerous repair costs. Marketplace Homes does NOT do this - they do take the first month's rent, but they guarantee that if the tenant they vet and verify breaks the lease, the owners do not have to repay the original first month's rental fee to Marketplace Homes and Marketplace will find another suitable tenant at their expense to finish the lease. So the incentive is on Marketplace Homes to place reliable tenants who pay their rent on time and do not break the lease - a bad tenant costs Marketplace Homes money, not just the homeowner - we share the risk. I understand that the concept of this - long-distance property management - may seem peculiar, but I recommend it. They do have local contacts in the Canton Ohio area who can go out and fix a bee problem, better and faster than our previous local Canton Ohio property management company. It's worth looking into, if you haven't, and worth considering, if you have