Property management fees are the monthly fee paid by property owners to property management companies for providing professional management services. Although some charge a flat fee, most charge a percentage of the property’s gross monthly rent. Our property management fee Calculator is a convenient tool for property owners to easily understand and calculate how much in fees they would be paying to have their rental property professionally managed.
Calculate Property Management Fees
Please input the required fields (*) below to calculate a property’s property management fees. Be sure to also check out our guide on how property management works.
Property Management Fee Formula
The standard mathematical formula for calculating property management fees rate is noted below. Note that you will first need to determine your gross rent per month for the entire property and the property management percentage (%) values first to input into calculation.
Monthly Property Management Fees = (Gross Rent Per Month For All Units1 x Percentage % Management Fee2)
1. Gross Rent – Gross rent is the full amount of rent paid before other expenses are subtracted, such as utility or maintenance costs.
2. Management Fee % – The percentage of gross rents that a property management company charges rental property owners for management services.
Property Management Fee Definition
A property management fee is a recurring cost payable to a property management company for providing day-to-day management services of a rental property.