reference
glossary.
25 terms
definition
A property management fee is the cost charged by a professional management company to oversee rental properties on behalf of the owner. These fees typically range from 8-12% of the monthly rental income and cover services like tenant screening, rent collection, maintenance coordination, and property marketing. Additional fees may apply for services like tenant placement, lease renewals, or major repairs.
examples
- —The property management company charges a 10% fee on the $2,000 monthly rent, resulting in a $200 management fee.
- —In addition to the monthly property management fee, the owner paid a $150 tenant placement fee when new renters moved in.
- —The investor factored the property management fee into their cash flow calculations before purchasing the rental property.