Property Management Fees Explained

The Monthly Management Fee

The monthly management fee is the core charge for day-to-day oversight of your rental. It covers rent collection, tenant communication, routine inspections, and basic financial reporting. In the US, most managers charge between 8% and 12% of collected rent. In Canada, the range is typically 8% to 10% for single-family and small multi-family properties. Urban markets in both countries often sit at the higher end.

A percentage-of-rent model creates a misalignment: when a unit is vacant, the manager earns nothing, which can motivate faster (but not always better) tenant placements. Some managers charge a flat per-door fee instead, which keeps costs predictable regardless of occupancy. That structure also makes it easier to budget across a growing portfolio.

• US typical range: 8-12% of monthly collected rent
• Canada typical range: 8-10% of monthly collected rent
• Flat per-door fees (common with software-first platforms) remove vacancy misalignment
• Some managers charge a minimum monthly fee (e.g. $100-150/unit) that applies even if rent is below a certain threshold

Leasing and Tenant Placement Fees

Every time a manager fills a vacant unit, they typically charge a one-time leasing fee. This covers advertising, showings, tenant screening, lease drafting, and move-in coordination. The most common structure in the US is one month's rent, though some managers charge 50-75% of the first month or a flat fee of $300-600. Canadian managers tend to charge one-half to one full month's rent depending on market and property type.

Leasing fees are often the single largest line item in your first year with a new property manager, especially if you have high turnover. Before signing a management agreement, ask whether the leasing fee is charged when the tenant signs or when they move in, and whether it is refundable if the tenancy ends in the first 60-90 days.

• US standard: 50-100% of the first month's rent
• Canada standard: 50-100% of the first month's rent
• Flat-fee structures ($300-600) are more predictable for lower-rent markets
• Ask whether a "lease renewal fee" (often $150-300) also applies each year

Maintenance, Repair, and Markup Fees

Most managers have preferred vendors or in-house maintenance teams, and many add a markup of 10-20% on top of every repair invoice. On a $500 HVAC repair that becomes $575-600 before you see the bill. Across a year of routine maintenance, these markups can add up to more than the monthly management fee itself.

Ask your manager for a written disclosure of their vendor markup policy before signing. Some managers waive markups entirely (and profit only on the management fee), while others charge a "maintenance coordination fee" of $50-75 per work order on top of the markup. Neither model is inherently wrong, but you need to know which one you are agreeing to.

For self-managing landlords and hybrid operators using software like Revun, maintenance requests flow directly to vendors you choose, with no markup layer in between. That transparency is one of the clearest cost advantages of managing your own portfolio with good tools.

Less Obvious Fees to Watch For

Beyond the headline fees, management agreements often include a long list of smaller charges that erode your net operating income. None of these are inherently unfair, but you should know what you are agreeing to.

Common secondary fees include setup or onboarding fees ($200-500 per property), eviction coordination fees ($300-600 on top of court costs), vacancy fees (a flat charge when a unit sits empty), early termination fees (often one to two months of management fees), and annual account fees. In Canada, some managers also charge a GST/HST administration fee.

• Setup/onboarding fee: $200-500 per property (one-time)
• Lease renewal fee: $100-300 per renewal
• Vacancy fee: $50-100/month when unit is unoccupied
• Eviction coordination: $300-600 plus legal costs
• Early termination: 1-2 months of management fees
• Annual account or statement fee: $100-250

How to Evaluate the Total Cost of Management

The only fair comparison between management companies (or between hiring a manager versus self-managing) is total annual cost per door. Start with projected monthly fees, add the leasing fee amortized over average tenancy length, add estimated maintenance markup, and include secondary fees. For a single-family home renting at $2,000/month with typical 2-year tenancy, total annual management costs often land between $3,500 and $5,500 depending on the fee structure.

If you are managing fewer than five units, most full-service management companies are not cost-efficient. Property management software platforms built for landlords let you handle rent collection, maintenance coordination, lease management, and financial reporting yourself at a fraction of that cost. Revun, for example, is free for one to two units and charges flat per-door pricing as you scale, with no percentage-of-rent model eating into your returns. You can review the full breakdown on the Revun pricing page at /pricing/.

For larger portfolios or property management companies looking to streamline operations across dozens or hundreds of units, the calculus shifts. Dedicated tools designed for professional operators - like the solutions offered at /solutions/property-management-companies/ - can replace expensive third-party managers or reduce the overhead of building internal systems from scratch.