How property management fees work
The fee types you'll see in management agreements, and how to compare quotes fairly.
5 min readBy Green American Property Management
Property management pricing can look simple — a monthly percentage — until you read the agreement. Two quotes with the same headline rate can cost very different amounts once other fees are added. Here are the fee types to look for.
Common fee types
| Fee | What it usually covers | Questions to ask |
|---|---|---|
| Monthly management fee | Day-to-day management, rent collection, tenant communication | Is it charged on rent collected or rent due? What's included? |
| Leasing or placement fee | Marketing, showings, screening, lease signing | Is it charged per new tenant? Is there a guarantee if the tenant leaves early? |
| Renewal fee | Preparing and signing a lease renewal | Is there one? How much? |
| Setup fee | Onboarding a new property | Is it one-time? |
| Maintenance markup | Coordinating contractor work | Are contractor invoices marked up? Can I see them? |
| Vacancy fee | Charged while a unit is empty | Is anything charged when no rent comes in? |
| Termination fee | Ending the agreement | How much notice is needed? Any cost to leave? |
Compare total cost, not the headline rate
Estimate a typical year for your property: twelve months of management, one leasing or renewal event, and a few repairs. Run each quote through that same year. The cheapest monthly rate isn't always the cheapest manager, and the quality of tenant placement usually matters more than any single fee.
What shouldn't be vague
- Who approves repairs, and above what amount
- How and when owner funds are paid out, and what reports you'll receive
- Who holds the security deposit and how it complies with New Jersey law
- How the agreement ends
Our pricing
We quote after a free consultation, because pricing depends on the property, the number of units and the services you choose. We'll walk you through every line of the agreement. See what to look for when choosing a property manager for the other questions to ask, or request a quote.
