If you own multiple properties or have other responsibilities, you’ll have little to no time left to enjoy your earnings. That’s why so many investors partner with a property manager.

The right manager will take over all the operational responsibilities of your rental, from advertising and tenant screening to routine maintenance and rent collection. They can also help you track your rental’s performance and find areas of opportunity. 

However, this doesn’t come for free. 

A property manager is an investment. Depending on the size, location, and number of units involved, it could eat up a significant chunk of your earnings. In this article, the experts at Mabry Management will break down the typical services provided and fees charged by property managers so you can evaluate whether this investment aligns with your goals. 

What Do Property Managers Charge?

Property management costs vary widely based on factors such as location, property type, services offered, and market demand. However, most management companies follow similar pricing models. These are the typical costs associated with hiring a property manager:

1. Monthly Management Fee

Property managers often charge an ongoing fee for their services, including day-to-day management, rent collection, communication, and coordination of maintenance tasks. This fee can be either a flat rate or a small percentage of the monthly rent. 

Percentage-based fees range from 6% to 12% of the monthly rent. Flat fees are typically reserved for high-end properties or large portfolios. The price will vary greatly depending on the size, location, and number of units to manage.

2. Onboarding Fee

Getting accustomed to a new property requires plenty of time and inspections. Because of this, most property managers charge a one-time setup fee when taking on new clients or an existing client’s new property. This one-time fee is used to cover all initial administrative work, inspections, and the effort of entering your property into their management system.

3. Leasing Fees

As you may already know, finding new tenants is not easy. Marketing a property and screening tenants require a significant effort, so most companies charge a leasing fee. This one-time fee covers all costs associated with marketing the property, conducting showings, screening tenants, and drafting and signing the lease. 



Keep in mind that if you own multiple properties or a multi-family property, you’ll have to pay a leasing fee for each unit.

4. Renewal Fees

Once you start working with a property manager, your contract will renew automatically as long as you keep paying for your services. However, they may charge you additional fees for handling tenant renewal. This one-time fee covers the costs of deep cleaning and inspecting the property, negotiating the new terms, and drafting a new lease agreement.

5. Maintenance Costs

Maintaining a rental property is neither easy nor free. Cleaning supplies, tools, construction materials, and contractor invoices can be pricey. When you partner with a property manager, you can get quality work at a fraction of the price, as they often get bulk service discounts. 

However, most property managers charge a markup to all contractor invoices to make up for their time and administrative work in coordinating maintenance and repairs.

6. Legal Fees

While they’re not legal professionals, property managers are still well-versed in the legal complexities of renting a property. They can help you draft legally binding lease agreements, serve tenants important notices, file lawsuits, file for eviction, and even represent you in court. 

However, this often comes at an additional cost, typically ranging from a couple of hundred to over a thousand dollars, depending on the complexity of the request.

Tips to Keep Property Management Costs in Check

By combining all the common fees and surcharges, you’ll see that a landlord typically pays between $2,000 and $3,500 annually for full-service property management for a single-family rental. If you own multiple units or a multi-family rental, the total cost may be significantly higher, but the per-unit rate will be lower.

If you want to hire a property manager but are worried about overspending, then you should follow the following recommendations:

• Understand What’s Included. Make sure you know what the base fee covers and what will incur additional charges.
• Negotiate Terms. Some fees are flexible. Try negotiating the leasing fee or asking for discounts for multiple units to bring down the costs.
• Read the Contract Carefully. Look out for hidden fees or auto-renewal clauses. Ensure the termination clause is fair before signing the contract.
• Track Performance. Review monthly reports and set benchmarks. Ensure the manager is helping reduce vacancies and maintain the property’s value.

Bottom Line

Managing a rental property can be an incredibly demanding experience. From handling maintenance issues and tenant concerns to keeping up with legal requirements and rent collection, it’s a full-time job in itself. 

While hiring a property manager may seem like an added expense, it’s truly a smart investment. A skilled manager can save you time, reduce stress, and even increase your profits by minimizing vacancies and enhancing tenant satisfaction.

If you’re looking for a trusted property management company in Torrance, CA, or the surrounding area, you’re in the right place! Contact Mabry Management to learn more about our pricing and services.