Key Verified Owner Resource
Understanding Property Management Fees
Property management pricing is rarely just one percentage. Here is how to compare the full cost.
The ongoing management fee
Many companies charge a percentage of collected rent, while others use a flat fee or a hybrid model. Ask exactly what the percentage applies to and whether there is a minimum monthly charge.
Leasing and placement fees
Finding and placing a tenant may be priced separately from ongoing management. Ask whether advertising, showings, screening, lease preparation, and placement are included or billed separately.
Renewal and inspection charges
Some agreements include lease renewals or routine inspections while others charge separate fees. Ask how often inspections occur and what each inspection costs.
Maintenance and vendor charges
Understand whether the company adds a markup to vendor invoices, charges a coordination fee, or uses another structure. Ask whether you can review invoices and whether owner approval is required above a certain amount.
Termination and other charges
Read the agreement for early termination fees, vacancy fees, onboarding charges, reserve requirements, legal or eviction coordination fees, and other less-obvious costs.
Compare total expected cost
The best comparison is not simply “Company A charges X% and Company B charges Y%.” Estimate the likely annual cost using the complete fee schedule and the services you expect to use.