How Much Does a Property Manager Cost?

Property management costs vary depending on property type, size, and location. For residential properties, managers typically charge 8%–12% of the monthly rent, while multifamily properties might see fees between 4%–10%. Additional costs may include leasing fees, maintenance, and setup or vacancy fees.

Here’s a breakdown of typical costs for different property types:

1. Residential Property Management (Single-Family Homes)

Monthly Management Fee: 8%–12% of the monthly rent collected. For example, if your rent is $1,500, the monthly fee could range from $120 to $180.
Leasing Fee: Typically 50% to 100% of one month’s rent for finding and placing a tenant.
Maintenance Fees: Either a markup on third-party services (e.g., 10%–20%) or an in-house rate for repairs and upkeep.
Vacancy Fees: Some property managers charge a flat fee or a reduced percentage even if the property is vacant.
Setup Fee: A one-time fee ranging from $250 to $500 for setting up your property in their system.

2. Multifamily Property Management (Apartments)

Monthly Management Fee: 4%–10% of total rent collected, usually lower than single-family due to economies of scale.
Leasing Fee: 25%–50% of one month’s rent per unit for new leases.
Maintenance and Repair Fees: Can vary widely, often negotiated as part of the agreement, but typically similar to those for single-family properties.

3. Commercial Property Management

Monthly Management Fee: 3%–6% of the gross rent or a flat fee.
Leasing Fee: 5%–10% of the total lease value, especially for long-term leases.
Maintenance Fees: Similar to other property types but might include specific commercial considerations (e.g., managing large HVAC systems or landscaping).

4. Other Potential Costs

Eviction Fees: Some property managers charge for overseeing evictions, typically a flat fee ($300–$500).
Renewal Fees: When a tenant renews their lease, managers may charge a fee (e.g., $100–$200).

Costs will vary significantly based on the location, market conditions, and the specific services you require (e.g., full-service management vs. only tenant placement).

How Much Does a Property Manager Cost?