Typical Property Management Fees

Although owning a rental property can be a profitable source of income, it also entails obligations that might be time-consuming or taxing, particularly if you are managing several units or live distant from your investment. Many landlords thus decide to assign daily chores to property management businesses.

However, you should know what property management costs usually cover and how much they can affect your rental income before you turn over the keys.

The common price structures, what services are often covered, hidden fees to be aware of, and why some landlords are choosing digital alternatives to manage properties more reasonably—including financial platforms like baselane—will all be broken out in this article.

What Are Property Management Fees?

Property management fees are expenses paid by landlords to outside managers or companies to supervise rental properties. Location, kind of property, and degree of service given all affect these rates. Although appointing a manager would help you to lighten your responsibilities, it’s crucial to know exactly what you are paying for and how these expenses impact your bottom line.

Common Types of Property Management Fees

The most usual property management fees you will come across are broken out here:

1.Monthly Management Fee

Usually representing a percentage of the monthly rent received, this is the most common charge. Most markets pay this charge either 8% to 12% of the rental proceeds.

For instance, you will pay $200 a month for management services if your house rents for $2,000 and your manager charges 10%.

What it usually covers:

Rent collection

Tenant communication

Basic maintenance coordination

Lease enforcement

2. Leasing Fee (Tenant Placement Fee)

When a property becomes vacant, many managers charge a separate fee for finding and screening a new tenant. This is often:

50% to 100% of one month’s rent, or

A flat fee (e.g., $500–$1,000, depending on the property and market)

Includes:

Marketing the property

Showing it to prospective tenants

Background and credit checks

Preparing lease documents

3. Lease Renewal Fee

Some businesses impose a lesser fee for renewing a lease with an established renter. Usually ranging from $100 to $300, this represents a percentage of the rent—that is, 25% of one month’s worth.

4. Maintenance Markup Fees

While property managers handle maintenance coordination, many add a markup (usually 10%–20%) on vendor or contractor invoices. Always check whether maintenance fees include a markup and how it’s calculated.

5. Setup or Onboarding Fees

A one-time fee for starting service with a new property. It can be as low as $100 or up to $500, depending on the provider. It covers the administrative work of entering your property into their system.

6. Eviction or Legal Fees

Some property managers demand, aside from the attorney fees, additional legal or court filing expenses if a tenant needs to be evicted. The complexity will determine if this is $200 or more.

7. Vacancy Fee

Rare, but some managers charge a small fee when the unit is unoccupied, especially if they’re still handling maintenance or inspections during that time.

How to Evaluate If Property Management Is Worth the Cost

Every landlord needs to assess whether hiring a manager is financially and strategically smart. Here are a few scenarios where it might make sense:

You live far from the rental property.

You own multiple units and want to scale

You’re investing for passive income and prefer not to deal with tenants.

Your time is better spent on other investments or work.

But, if your profit margins are tight or you’re comfortable managing the basics yourself, DIY management might be a better route—especially now that affordable software tools are available to simplify things.

Hidden Costs to Watch Out For

Not all fees are clearly disclosed upfront. Some questions to ask before signing a property management agreement:

Do they charge you even if rent isn’t collected?

Is there a markup on maintenance or repairs?

Are inspection fees included?

What happens if a tenant breaks the lease?

How are emergency repairs handled?

Always read the fine print, and don’t hesitate to ask for a breakdown of all potential costs in writing.

Alternatives to Traditional Property Management

With technology evolving, many landlords are now exploring tools that allow them to self-manage properties without hiring a full-service manager. Platforms designed specifically for landlords now offer features like:

Automated rent collection

Expense tracking

Maintenance request management

Banking and accounting tools

Lease and document storage

These tools reduce the administrative burden and can often be run from your phone or laptop. For landlords who prefer control without giving up too much time, these digital platforms are a strong alternative to traditional management companies.

Where Baselane Fits In

For landlords looking to keep operations in-house but still run efficiently, platforms like baselane offer an innovative solution. Rather than taking over the management of your property, baselane gives you the financial infrastructure to stay organized and professional.

Its banking tools are tailored for rental property owners, helping you:

Separate property finances

Track income and expenses automatically

Set aside funds for taxes, maintenance, or reserves.

Monitor cash flow per property.

What makes this particularly useful is that it reduces the need for spreadsheets, manual tracking, or third-party accountants for everyday tasks. For landlords trying to stay lean and maximize profit, these kinds of tools fill the gap between self-management and full outsourcing.

And because you’re handling the finances directly, you maintain control over where your money goes—including those property management fees you may be trying to avoid.

Tips for Managing Your Property Efficiently (Without a Manager)

If you’re leaning toward self-managing with the help of software and structure, here are a few best practices to keep in mind:

1. Set Up a Dedicated Bank Account

Never mix personal and rental finances. Use a platform that allows you to assign specific accounts to each property.

2. Automate Rent Collection

Use systems that handle late fees, automatically issue reminders, and gather rent. This saves time and keeps uncomfortable talks away.

3. Digitize Expense Tracking

Scan and upload receipts. Use categorization tools that make tax season easier.

4. Create a Maintenance Response Plan

For plumbing, electrical, or emergency problems, know who to call. Have backups should your chosen suppliers prove to be not available.

5. Keep Tenants Informed

Good communication helps reduce conflict and keeps tenants longer. Automate lease renewals, updates, and notices.

Conclusion

If you’re not attentive, property management costs can reduce your income. The expense may be well worth it, though, for landlords who value time and efficiency or live far away. The secret is to be reasonable about your own availability and skill set and to know what you are paying for.

Whether you decide on entirely DIY rental operations, a hybrid method, or full-service management, knowing the pricing structures and applying the appropriate financial instruments will enable you to keep in control.

Platforms like baselane are making it easier than ever to handle rental finances without needing to outsource everything—giving landlords more options and flexibility in 2025 than ever before.