Property Management Fee

Property management fee is the ongoing monthly charge a property manager collects for running a rental. It covers the core services: collecting rent, fielding tenant calls, coordinating maintenance, handling lease renewals, and keeping the owner out of the daily grind. The fee is typically calculated as a percentage of collected rent — most commonly 8% to 10% — though some managers charge a flat dollar amount, especially on properties with low rents where a percentage would be too small to justify the work.

How it works. If a single-family home rents for $2,000 per month and the management agreement is 10%, the manager takes $200 each month that rent is collected. When the property is vacant and no rent comes in, most managers collect nothing (which aligns their incentives with the owner’s). However, many agreements include a minimum monthly fee — perhaps $75 to $100 — to cover basic oversight even during vacancy.

For the complete picture of property management costs, see property management and costs. For why good management is critical from a distance, see out-of-state investing.