How Much Does A Property Manager Cost?

Last Updated on March 31, 2025
Written by CPA Alec Pow | Content Reviewed by CFA Alexander Popinker

Hiring a property manager can make owning investment properties significantly less stressful. Professional managers handle tenant screening, rent collection, maintenance issues, compliance, and more – but at what price? Understanding property management fees is key to protecting your rental income and ROI.

On average, property managers charge 8-15% of monthly rent – but the cost varies based on factors like location, number of units, and services included. By learning typical pricing models, estimating your costs, and comparing options thoughtfully, you can make the best financial decision for your rental property.

How Much Does A Property Manager Cost?

The typical cost for a property manager ranges from $70 – $125 per month for a single-family home rental, up to 8-12% of rent for larger multifamily properties. Additional fees can bring the total monthly cost to $200 or more on the high end.

Average fees vary based on the type and size of properties managed:

• Single-family residential – Typically $70 – $125 per month or 8-12% of monthly rent
• Multifamily properties – Average 8-12% of collected rent per property
• Condos and HOAs – Around $65 – $100 per unit per month are common
• Vacation rentals – Usually charged as 25-35% of rent due to intensive management
• Commercial properties – Average 3-7% of collected rent

Bear in mind regional differences as well. Metropolitan and resort areas with high property values and demand generally have higher property management rates.

On a per unit basis, single-family rentals incur the highest costs due to their stand-alone nature. Multifamily properties with dozens of units provide economies of scale, with per-unit pricing dropping as low as $35 per door monthly when scaled.

According to Thumbtack, the national average cost for property management is $99 per month, with typical fees ranging from $80 to $100 per month. Lower-end costs start at $69 per month, while high-end services can go up to $225 per month. Property managers may charge either a flat fee or a percentage of monthly rent, with percentages typically ranging from 8% to 12% of the rental income.

On Hospitable, property management fees for long-term rentals are generally between 8% and 10% of monthly rent for single-family homes. Short-term rental properties, which require more frequent cleaning and guest communication, tend to have higher commission-based fees, ranging from 25% to 40% of rental income. Fixed-rate fees are also available but vary depending on the services included.

The article on Apartment List states that property management companies charge 8% to 12% for single-family homes, while multi-family homes typically incur fees between 10% and 15%. For vacation rentals, fees are higher, ranging from 15% to 25%, reflecting the increased workload involved in managing bookings and turnover.

According to iProperty Management, additional fees include onboarding costs ($100–$300), tenant placement fees ($300–$500), and vacant property oversight ($100+ per month). Repair reserves can range from $1,000 to $3,000, while lease renewal fees are typically under $200.

Lastly, Stessa reports that most property management companies structure their fees as either a percentage of monthly rent (8%–12%) or a flat fee (around $100 per month for single-family homes). Additional charges may apply for services like tenant placement or contract setup, which can cost around $300.

What Does a Property Manager Do?

A property manager is hired to oversee the day-to-day operations of a rental property. Core responsibilities typically include:

• Tenant screening – Thoroughly vetting applicants by running credit checks, background checks, verifying income and references, checking past rental history, and approving or denying based on set criteria.
• Rent collection – Administering and enforcing the lease agreement, collecting monthly or annual rental payments, addressing delinquencies, and providing receipts and statements.
• Maintenance coordination – Fielding repair requests, hiring and overseeing technicians and contractors to perform maintenance or upgrades, obtaining permits, sourcing parts/materials.
• Lease compliance – Ensuring adherence to the rental contract and local housing laws regarding notice periods, allowable fees, termination, anything impacting tenant rights.
• Property oversight – Conducting inspections, identifying issues proactively, ensuring safety protocols and building codes are followed, overseeing vendors.
• Vacancy management – Marketing available units through advertising, showing vacant properties, securing new tenants quickly to minimize vacancies.
• Administrative duties – Renewing leases, budgeting, accounting, legal filings, responding to emergencies or complaints at all hours.

Skilled property managers protect your investment and maximize income by keeping units full and running smoothly. Administrative and maintenance work required can quickly become burdensome, making professional support valuable.

You might also like our articles about the cost of a mansion, flood insurance, or notary services.

Property Management Fee Structures

Property management companies utilize a variety of pricing models and fee structures:

• Percentage of rent – The most common model, fees range from 8-15% of total monthly rental income collected. Scales with revenue.
• Flat monthly fee – A fixed dollar amount each month regardless of unit occupancy or rents. Predictable.
• Per unit pricing – Charged as fixed rate per property, unit, or room. Similar to flat fee.
• À la carte – Itemized fees charged separately for specific services provided as needed. Allows flexibility.
• Hybrid – Base monthly or annual fee plus additional percentages, markups, or fees for defined services.

No one pricing model is inherently better. Assess whether a percentage of rent, flat fee, or hybrid approach best fits your property type, risk tolerance, and need for transparency.

Additional (and Hidden) Fees

When evaluating a property management agreement, be aware that base monthly or percentage of rent fees are not the only expenses charged. Additional fees for certain defined services often include:

• Lease renewal – $150-$300+ per lease renewal or extension
• Tenant placement – 50-100% of the first full month’s rent to find and place new tenants
• Maintenance markup – 10-25% markup on repairs, supplies, and parts
• Advertising – $300-$500+ per vacancy for marketing to fill empty units
• Eviction – $200+ per legal eviction proceeding initiated for non-payment
• Lease takeover – $300+ to take over an existing tenant agreement from a prior landlord

Recurring maintenance, frequent tenant turnover, and capital upgrades can mean these ancillary fees accumulate substantially. Get all pricing in writing upfront to avoid surprises down the road.

What Factors Influence Cost?

Several important variables impact average quoted pricing and rates to oversee a given rental property:

• Location – Urban metros and resort/vacation markets command higher rates due to demand and property values
• Property value – Higher rental income means higher percentage fee potential
• Property type – Single-family vs. multifamily, older vs newer construction, basic vs luxury
• Services provided – Scope of management duties handled, from basic to comprehensive
• Condition – Difficult properties require greater oversight for a higher fee
• Included utilities – More utilities covered means increased coordination effort
• Market conditions – High competition between management companies can lower costs

Understanding how these dynamics specific to your scenario affect pricing allows you to set accurate expectations when budgeting.

DIY vs Hiring a Property Manager

Many landlords and investors just starting out reasonably try to self-manage properties to avoid management costs. However, doing it yourself does take substantial time, effort, and skill. Cost trade-offs beyond just the monthly fees charged by professional managers include:

Benefits of DIY Management

• Not losing 8-15% of rent to a management company
• No multi-year contract commitments
• Flexibility in choosing tenants and decision-making

Downsides of DIY Management

• Hourly time spent screening tenants, collecting rent, overseeing maintenance
• Opportunity cost of focusing on other revenue-generating investments instead
• Stress of fielding middle-of-the-night emergencies or evictions yourself
• Steep learning curve staying current on housing laws and regulations
• Lacking third-party oversight leading to potential compliance issues

Many landlords ultimately find the benefits of professional management worth the trade-off of fees. But assess your comfort level, time availability, and ultimate goals.

How to Choose a Property Manager

When evaluating and comparing providers:

• Request quotes from 3-5 local companies
• Ask about included services to determine total value
• Look for clear, competitive pricing with no hidden fees
• Read reviews of responsiveness and transparency
• Interview finalists in-person if possible

The best value balances reasonable rates with top-tier service and communication.

Expert Opinions

“Take time to request and review detailed pricing schedules and contracts from any potential property management company before agreeing to work together. Some unfortunately opaque agreements contain hidden fees that erode your bottom line. Ask pointed questions, run worst-case scenarios like high turnover or major repairs, and make sure your manager’s incentives are fully aligned with your long-term rental income goals.”

Carter Haywood, Real Estate Attorney and Landlord advisor at Law Offices of Carter Haywood

“Don’t automatically assume hiring a professional property manager isn’t worth the fees and loss of rental income compared to self-managing, especially as your portfolio grows. There is definite value in having an experienced third party handle screening, maintenance, emergencies, and compliance on your behalf. The fees allow you to truly step back as a passive investor in some properties while focusing more actively on others.”

Alicia Thompson, Real Estate Investor and Landlord at DG Properties LLC

“Take time to understand the typical range of management costs in your desired investment locales before acquiring rental properties, factoring expenses in along with mortgage payments. Too many new landlords underestimate budgeting for property management support. Being knowledgeable on pricing models and averages for your target metro area from the start makes navigating decisions much easier.”

Miguel Henderson, Property Investment Advisor and Coach at Ready Set House

Final Words

Management costs absolutely impact rental income projections and ROI. But professional coordination also provides vital protection and peace of mind in exchange.

Be sure to clearly communicate your expectations, property condition, existing tenants, responsibilities, and ultimately goals with any potential management partner. Weigh your options thoughtfully – don’t just default to the cheapest provider. With the right fit, the benefits of hiring a property manager generally outweigh the costs over the long run.

Answers to Common Questions

How do I evict a tenant?

To evict a tenant, first provide written notice per the lease terms, usually 30 days. If they don’t vacate, file a formal unlawful detainer lawsuit and get a court order. Use a sheriff or constable to enforce the eviction if needed.

Do you guarantee the tenant?

Most standard management agreements do not guarantee tenants or rents. However, some offer eviction guarantee services or rent protection for added fees, taking on liability for vacancies or non-payment.

Who chooses the tenant?

The owner maintains final approval over tenant selections, but a good manager will screen applicants thoroughly first and make recommendations to reject or accept based on criteria you set. Checks and balances are key.