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.
This calculator is meant for educational purposes only. The calculation generated from the calculator does not, and is not intended to, constitute financial advice. As such, all information, content, and materials available on this site are for general informational purposes only. Please review our Editorial Standards for more info.
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.
What are Property Management Fees?
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.
Property Management Fee Calculator FAQ
Are There Additional Fees Beyond the Basic Property Management Fee?
Yes, many property managers charge additional fees for specific services. Common additional fees include tenant placement or lease-up fees, lease renewal fees, maintenance markup fees, eviction fees, and advertising fees. It’s essential to carefully review the management agreement to understand the full fee structure.
Do Property Managers Charge Fees When the Property is Vacant?
This varies by manager and agreement. Some managers might charge a reduced fee, a flat fee, or no fee at all during vacancy periods, while others might still charge the standard percentage based on potential or market rent.
Can Property Management Fees be Adjusted Based on Performance or Benchmarks?
Yes, some property owners negotiate performance-based incentives or adjustments in the management fees. For instance, a lower fee might be agreed upon if the property remains vacant beyond a certain period, or there might be bonuses for achieving above-market rents or high tenant retention rates.