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Property Management Fee Calculator
Trying to decide if handing 10% of your rent to a property manager is worth it—or if you should tough it out yourself? Let's do the math on fees, your time, and how many 3am toilet calls you're willing to take.
Your Rental Portfolio
Self-Management Costs
Annual Cost Comparison
💰 Winner: Self-Manage
PM costs you $0/year
Self-manage costs $0/year (time + screening)
Self-manage saves $0/year
Property Manager vs Self-Manage: The Real Cost
The 10% fee looks expensive until your tenant calls at 11pm because the furnace died. Or you spend 6 hours screening applicants only to pick a dud who stops paying in month 3. Property management isn't just about collecting rent—it's buying back your time and sanity.
💡 Real Talk from Sarah Mitchell, PM (120 Units)
Most DIY landlords underestimate their time. They think "I check the mail once a month, takes 5 minutes." Reality: Tenant emails, maintenance calls, lease renewals, inspections, dealing with late rent. I track my hours—average 3-5 hours PER UNIT per year for easy tenants. Problem tenants? 20+ hours. At 10% fee, I'm basically working for $30-50/hour managing other people's properties. Owners would spend the same time for free—or pay me to deal with it.
Standard Property Management Fees
Monthly Management Fee: 8-12%
- Single-family: 10-12% (more work per dollar of rent)
- Small multifamily (2-4 units): 8-10%
- Larger multifamily (5+ units): 6-8% (economies of scale)
- Vacation rentals: 20-30% (high turnover, cleaning coordination)
Tenant Placement Fee: 50-100% of first month's rent
- Covers: advertising, showings, screening, lease prep
- One-time per turnover
- Example: $1,500 rent property = $750-1,500 placement fee
Other Fees (varies by PM):
- Lease renewal: $100-300 (sometimes free)
- Eviction filing: $200-500 (plus legal costs)
- Maintenance markup: 10-15% (they coordinate, contractor bills them, they bill you + markup)
- Monthly inspection: $50-100 (optional)
⚠️ Common Mistake: Hiring the Cheapest PM
5% management fee sounds amazing until you realize WHY it's so cheap: 1) They don't screen tenants (approve everyone = high eviction rate), 2) They ignore maintenance (your $500 water leak becomes $5k mold), 3) They're juggling 300 units and can't return calls. Interview 3 PMs minimum. Ask for references from current clients. Check BBB reviews. A good PM at 10% saves you way more than a bad PM at 5% costs.
When to Self-Manage
Good fit if:
- 1-2 units max (not enough volume for PM fees to make sense)
- You live near the property (<30 min drive)
- You have flexible work hours (can take maintenance calls)
- You're handy (can fix minor stuff yourself)
- You LIKE dealing with people (some landlords genuinely enjoy it)
Annual time investment (per unit):
- Rent collection/bookkeeping: 12 hours/year (monthly check-ins)
- Maintenance coordination: 8-15 hours/year
- Tenant turnover (every 2-3 years): 20-30 hours (showings, screening, cleaning)
- Lease renewals: 2-4 hours/year
- Emergencies: 5-10 hours/year (unpredictable)
Total: 50-70 hours/year per unit for good tenants. Problem tenants can double this.
When to Hire a PM
No-brainer scenarios:
- Out-of-state properties (you can't show units or fix toilets from 1,000 miles away)
- 5+ units (your time becomes a bottleneck)
- You have a demanding day job (can't take 2pm maintenance calls)
- You travel frequently
- You hate confrontation (evictions, demanding tenants)
Break-even math:
- $1,500/month rent × 10% = $150/month PM fee
- You save ~5 hours/month self-managing
- $150 ÷ 5 hours = $30/hour
- If your time is worth >$30/hour (day job, side business), PM makes financial sense.
💡 Sarah's Hybrid Approach: Self-Manage Easy, PM Hard
Smart landlords with mixed portfolios: self-manage the local, easy properties (single family, good tenants, low maintenance). Hire PM for: out-of-state, multifamily, or problem properties. Example: I have a client with 12 units—she self-manages 4 local duplexes, I manage her 8-unit out-of-state complex. Best of both worlds—she saves fees where she can, pays for help where she needs it.
What a Good PM Actually Does
Marketing & Leasing:
- Professional photos ($200, pays for itself in faster rentals)
- Listing on Zillow, Apartments.com, FB Marketplace
- Showing coordination (they handle 20 showings, you handle 0)
- Application screening (credit, background, eviction history, employment)
Tenant Management:
- Lease signing (using vetted, state-specific lease templates)
- Move-in inspection with photos (protects your security deposit)
- Rent collection (autopay setup, chasing late payers)
- Lease enforcement (quiet hours, unauthorized pets, subletting)
Maintenance:
- 24/7 emergency line (they take the 2am furnace call, not you)
- Vendor network (plumbers, HVAC, electricians with pre-negotiated rates)
- Maintenance coordination (tenant calls PM, PM calls vendor, vendor bills PM, PM bills you monthly—you do nothing)
- Turnovers (cleaning, repairs, paint, carpet between tenants)
Legal Compliance:
- State/local landlord-tenant law compliance
- Fair housing law compliance (one screwup here = $10k+ lawsuit)
- Eviction filing and court representation
- Lead paint disclosures, smoke detector laws, etc.
Red Flags When Interviewing PMs
Run away if they say:
- "We approve 80%+ of applicants" (they don't screen, just want fees)
- "Maintenance markup is 25-30%" (you're getting robbed)
- "We require a 3-year contract" (trap you with bad service)
- "We handle 500+ units per manager" (you'll never get a call back)
- "References? Uh, we can get you some" (every good PM has a stack ready)
Green flags:
- Approval rate 20-30% (picky = good)
- Average vacancy <30 days
- Clear fee structure in writing (no surprise fees)
- They manage properties in YOUR neighborhood (know the market)
- Licensed and insured (required in most states)
DIY PM Tools (If You Self-Manage)
Must-haves:
- Tenant screening: TransUnion MySmartMove ($40/applicant), check credit + eviction history
- Rent collection: Cozy, Avail, Buildium ($0-15/month, autopay setup)
- Lease templates: State-specific from eforms.com or local realtor association ($30-100)
- Maintenance tracking: Spreadsheet or Rental Tracker app
- Accounting: Stessa (free), QuickBooks Self-Employed ($15/month)
Total cost: $50-100/month for 1-5 units if you DIY with software. Still way cheaper than 10% PM fee.
Reviewed by Sarah Mitchell
Property Manager (120 Units, 8 Years)
Sarah manages everything from single-family to 20-unit complexes. Her advice? If you have a day job making >$50/hour, hire a PM for 3+ units. Your time is worth more.
Frequently Asked Questions
How much do property managers charge?
Standard rate: 8-12% of monthly rent. Single-family homes: 10-12%. Multifamily (4+ units): 6-8% (volume discount). Plus one-time tenant placement fee: 50-100% of first month's rent. Example: $1,500/month rent at 10% = $150/month management fee + $1,500 placement fee per turnover. Cheap PMs (5-7%) exist but usually suck—you get what you pay for.
Is property management worth it?
Depends on: 1) How many units (1-2 units? Probably not. 10+ units? Absolutely). 2) Your time value (saving 5 hours/month at 10% fee vs your hourly rate). 3) Distance from property (out-of-state? PM is mandatory). 4) Your tolerance for 2am emergency calls. Break-even: if your time is worth >$50/hour and you have a day job, PM usually makes sense for 3+ units.
What do property managers actually do?
Good ones: tenant screening, lease signing, rent collection, maintenance coordination, 24/7 emergency calls, evictions, inspections, financial reporting. Bad ones: collect fees, ignore maintenance, place terrible tenants. Interview 3+ PMs. Ask: average vacancy days, tenant approval rate (should be <30%), maintenance markup (10-15% is fair), how many evictions last year. Red flag: 'we approve all tenants'=they don't screen.
Can I fire my property manager?
YES. Most contracts are month-to-month or have 30-60 day termination clauses. Read your contract. Typical exit: 1) Give written notice, 2) They transfer tenant files/leases to you, 3) Final accounting of security deposits/rents. Some shady PMs try to charge 'early termination fees'—negotiate these out upfront. Never sign a contract longer than 1 year without an exit clause.