Property Management Fee Calculator
Calculate property management costs including monthly fees, lease renewal fees, and maintenance markups.
Results
Visualization
How It Works
Property management companies charge 8-12% of monthly rent plus additional fees for leasing, renewals, and maintenance coordination. While expensive, professional management saves time and can be worthwhile for out-of-state investors or those with multiple properties.
The Formula
Variables
- Management Fee — Monthly percentage of rent collected (typically 8-12%)
- Renewal Fee — One-time fee for lease renewals (typically $150-300)
- Markup — Percentage added to maintenance and repair costs (typically 10-20%)
Worked Example
$2,000/month rent, 10% management fee: Monthly = $200, Annual = $2,400. Renewal = $200. Maintenance markup (10% of $3,000) = $300. Total = $2,900/year (12.1% of rent).
Practical Tips
- Negotiate the management fee — especially if you have multiple properties or higher-rent units.
- Ask about hidden fees: lease-up fees, inspection fees, early termination fees, advertising costs.
- Self-managing saves 8-12% but requires significant time — value your time when comparing.
- Management fees are fully deductible as a rental property expense.
- Interview at least 3 companies and check references from current landlord clients.
Frequently Asked Questions
What do property managers charge?
Typically 8-12% of monthly rent for ongoing management. Plus: new tenant placement fee (50-100% of first month's rent), lease renewal ($150-300), and maintenance markups (10-20%).
Is hiring a property manager worth it?
It depends: for local properties you can visit easily, self-managing saves money. For out-of-state properties, multiple units, or if your time is valuable, professional management is usually worth the cost.
What should a property manager do?
Marketing, tenant screening, lease execution, rent collection, maintenance coordination, inspections, legal compliance, financial reporting, and eviction management if needed.
Can I deduct management fees?
Yes — property management fees are fully deductible as a rental expense on Schedule E, reducing your taxable rental income.
How do I choose a good property manager?
Check licensing, read reviews, ask for references, understand their fee structure completely, verify their maintenance vendor network, and confirm their tenant screening process.