A property manager costs more than the monthly percentage. Enter the fee schedule from your management agreement, including leasing, renewal, maintenance markup and other fees, to see the real yearly cost, the effective percentage of rent and your cash flow with and without a manager.
Last updated:
Rental
$
%
Share of the year units sit empty
$
Mortgage, property tax, insurance, HOA (all units)
Management agreement
% of rent
Fee is charged on
$
0 if none
$
Technology, admin, inspections
% of 1 month
%
Share of units getting a new tenant each year
$
Charged on units that renew
$
$
%
Added on top of vendor invoices
Enter your values to see the result.
Advertisement
Advertisement
How to use the Property Management Fee Calculator
Enter the rent, number of units and vacancy, plus your other yearly costs such as mortgage, tax and insurance.
Enter the monthly management fee and whether it applies to collected or scheduled rent, plus any minimum.
Add the leasing fee and expected turnover, the renewal fee and any setup or other monthly fees.
Enter yearly repairs and the maintenance markup the manager adds to vendor bills.
Press Calculate fees to see the total yearly cost, the effective percentage and your cash flow.
How the yearly management cost is calculated
Monthly fees = rent basis × fee % × units × 12 (or the minimum fee, whichever is higher, per unit).
Effective fee = total management cost ÷ collected rent.
Example: a single-family rental at $2,000 a month with 5% vacancy collects $22,800 a year. An 8% fee on collected rent is $1,824. With 40% turnover and a 50% leasing fee ($400), a $200 renewal fee on the other 60% ($120) and a 10% markup on $1,800 of repairs ($180), the total is $2,524, an effective 11.1% of collected rent rather than 8%.
Common property management fees
Fee
Typical range
When it is charged
Monthly management fee
8%–12% of rent (single-family); lower for large buildings
Every month, on collected or scheduled rent
Leasing / placement fee
50%–100% of one month's rent
Each new tenant
Lease renewal fee
Flat $100–$300 or a percentage of rent
Each renewal
Maintenance markup
0%–15% of invoices
On repairs the manager coordinates
Setup / onboarding fee
$0–$500 per unit
Once, when you sign up
Eviction coordination
Flat fee plus legal costs
Only if an eviction is needed
Ranges are general industry guidelines and vary by market; your management agreement sets the actual fees.
Tips for comparing property managers
Compare the effective yearly cost, not the headline percentage. A lower monthly fee with high leasing fees can cost more if turnover is high.
Ask whether the fee is charged on collected or scheduled rent, and whether there is a minimum.
Check who keeps late fees and application fees; some managers keep them as income.
Longer tenancies cut leasing fees, so a manager who keeps good tenants can be worth a higher monthly rate.
Frequently asked questions
How much do property managers charge?
Most residential property managers in the US charge a monthly fee of about 8% to 12% of collected rent for single-family homes, often less for larger multifamily buildings. Many also charge a leasing fee (often 50% to 100% of one month's rent), a renewal fee and a markup on maintenance.
What is the difference between collected and scheduled rent?
Collected rent is what tenants actually pay, so you pay no monthly fee while a unit is vacant or rent goes unpaid. Scheduled rent is the full rent in the lease whether or not it is collected. A fee on collected rent gives the manager a reason to keep units filled.
What is a leasing fee?
A leasing or tenant placement fee pays the manager for marketing the unit, showing it, screening applicants and signing a new lease. It is usually a percentage of one month's rent and is charged each time a new tenant moves in.
What is a maintenance markup?
Some managers add a percentage, often 5% to 15%, on top of contractor invoices for coordinating repairs. On a property with $2,000 of repairs a year, a 10% markup adds $200.
What is the effective property management fee?
It is the total of all management charges in a year divided by the rent collected. A manager advertising 8% can cost 10% to 12% of collected rent once leasing, renewal and markup fees are included.
Are property management fees tax deductible?
For rental property owners, property management fees are generally deductible as a rental expense on Schedule E in the year paid. Check with a tax professional for your situation.
Are all the tools on FreeToolCabin tested for quality and accuracy?
Yes! Every tool on our site undergoes automated Q/A testing in real browser environments to ensure high precision, correct output, and zero errors. If you happen to spot a bug or have a suggestion, please contact us at [email protected] and our team will review it right away.