How Much Do Property Managers Charge

If you own a rental property—whether it’s a house, apartment, or commercial space—you might consider hiring a property manager to handle daily responsibilities. It can save you a lot of time, especially if you live far from the property or don’t want to deal with tenants, repairs, and rent collection.

But the big question is:
How much do property managers charge?

Let’s break this down in easy-to-understand terms and go over all the common fees you might expect in 2025.

What Does a Property Manager Do?

Before we talk about costs, it’s helpful to understand what a property manager actually does. A property manager is responsible for:

• Marketing your rental to find tenants

• Screening applicants (credit checks, background checks, rental history)

• Handling leases and move-in paperwork

• Collecting rent monthly

• Managing repairs and maintenance

• Dealing with complaints and emergencies

• Handling evictions if needed

• Providing financial reports

Because they take care of all these things, many landlords find hiring a manager worth the money.

Common Types of Property Management Fees

Property managers don’t have a one-size-fits-all pricing model. Their fees may vary based on location, type of property, and what services you need.

Here are the most common types of property management fees:

1. Monthly Management Fee

This is the main fee that property managers charge for day-to-day operations. It’s usually calculated in one of two ways:

a) Percentage-Based Fee

Most property managers charge between 8% to 12% of the monthly rent collected.

So, if your property rents for $2,000/month:

• At 10%, the management fee would be $200/month

• At 8%, the fee would be $160/month

This fee covers:

• Rent collection

• Tenant communication

• Coordinating repairs

• Sending monthly income statements

b) Flat Fee

Some managers charge a fixed monthly rate, no matter how much the rent is. For example:

• A flat $150/month, even if the rent is $1,500 or $2,500.

This is less common but is sometimes used for lower-cost properties or multi-unit buildings.

2. Tenant Placement Fee

Also called a leasing or setup fee. This is a one-time charge when a new tenant is placed in your property.

• Typically ranges from 50% to 100% of one month’s rent

• Example: If your unit rents for $1,800, the placement fee might be $900–$1,800

This fee usually covers:

• Advertising the rental

• Showing the property

• Screening applicants

• Preparing lease documents

• Move-in inspections

Some property managers offer free placement as part of a premium package, but it’s usually a separate charge.

3. Lease Renewal Fee

When an existing tenant renews their lease, some managers charge a lease renewal fee.

• This could be a flat fee ($100–$300), or a small percentage of rent.

• It covers updates to lease paperwork and possible rent negotiations.

Not all companies charge this—so it’s good to ask.

4. Maintenance Fees or Markups

When a repair is needed (like a leaky faucet or broken heater), the property manager may coordinate the work. Some companies:

• Use in-house staff (you pay an hourly rate)

• Hire outside contractors and add a markup (usually 10%–20%) on repair bills

For example:

• A $500 plumbing repair could cost $550–$600 after markup

Some managers don’t mark up, so it’s worth checking your contract.

5. Eviction Fees

If a tenant needs to be evicted, there are legal steps to take. Property managers may charge:

• A flat fee ($200–$500)

• Or hourly legal fees depending on the situation

Court fees and legal filings are extra.

6. Vacancy Fees

Some companies charge even when your property is vacant. These fees are rare but possible. Examples include:

• A small monthly “vacancy fee” ($50–$100)

• Or charging advertising costs during vacancy

Always review the agreement to be sure.

Other Possible Fees to Look Out For

• Setup/Onboarding Fee: One-time fee for opening your account, usually $200–$500

• Inspection Fees: Some companies charge for periodic property inspections ($100–$300)

• Late Payment Fees: Some managers keep a portion of the late fees paid by tenants

• Cancellation Fee: Charged if you end the management agreement early

Total Cost Example (Monthly)

Let’s say your property rents for $2,000/month. Here’s a sample breakdown:

Annual total:

• Monthly fees: $2,400/year

• Plus leasing/renewal/etc.: $2,200+ per year

So you might spend $4,000–$5,000 per year on property management for a $2,000/month rental.

What Affects the Cost?

Several things can impact how much you pay for a property manager:

1. Location

Property management in major cities like New York or Los Angeles usually costs more than smaller towns.

2. Type of Property

• Single-family homes usually cost less to manage than multi-unit apartments or commercial buildings.

• High-end or luxury homes might need more care and cost more.

3. Services Included

The more responsibilities you hand over, the more it costs. Some landlords choose “full-service” packages, while others go for basic rent collection only.

4. Experience & Reputation

A highly rated, experienced property manager might charge more—but they often bring better tenants and fewer problems.

Is It Worth It?

Hiring a property manager isn’t cheap—but for many landlords, it’s worth the cost. It gives you:

• Peace of mind

• More free time

• Fewer headaches dealing with tenants or repairs

• Professional expertise in screening and legal matters

• Better tenant retention and fewer vacancies

If you’re managing just one local property and have the time, you might not need one. But if you’re growing your rental business or live far away, it could be a smart move.

Final Thoughts

In 2025, the cost of hiring a property manager typically ranges from 8% to 12% of monthly rent, plus a few additional fees for new tenants, repairs, or legal work.

It’s important to:

• Compare several companies

• Read contracts carefully

• Ask about all possible fees upfront

This way, you won’t have any surprises later—and you’ll know exactly what you’re paying for.