Property management fee

What is a property management fee?

A property management fee is a payment for services involving the operations of rentals. These fees often cover maintenance, marketing/tenant placement, evictions, and payments. Property management fees are usually expressed as a percentage of monthly rent or on a flat fee per unit.

What is the average property management fee?

A typical property management fee ranges is 5-15% of the monthly rent. But property management fee structures can vary significantly. Some companies charge a monthly flat fee per unit. Others will charge one fee up to a certain number of units. Many property management contracts also include bonuses or penalties based on performance.

What does a property management fee cover?

Property management fees can cover a variety of services. Not all property managers offer the same things. Some may charge extra for each additional service. For example, many property managers will help market a property and secure a tenant. Other property managers only help with maintenance. The following is a list of common services:

• Maintenance and repairs: handling ongoing improvements and fixes required by tenants and regulations.
• Tenant placement/marketing: posting a unit on marketing channels and securing a tenant.
• Tenant screening: performing background and credit checks a landlord may require to approve a tenant.
• Payment collection: compiling rent payments from tenants
• Accounting: providing necessary accounting and reporting information based on rent payments and property expenses
• Evictions: carrying out the necessary legal and operational processes to remove a tenant