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Looking to hire a property manager to take care of your rental property? Read our handy guide to find out how much you can expect to pay for property management services.
The average price of property management is $170 per month. This figure varies based on your rental price, location, and the level of service you go for.
In the United States, there are around 326,000 property management firms. California has the highest number of property management companies, with 54,173.
Property management can be extremely useful when you rent out your house. These experts should reduce your stress and free up your time for more important things. The best property managers can help you to:
Find the right tenants
Collect monthly rental payments
Manage inspections, repairs and maintenance
Chase up missed payments
Deal with contract renewals
Negotiate rent rates with your tenants
By paying them a monthly fee, you can reduce the time and effort involved with renting out your property. But exactly how much do these experts charge? And is there a way to bring down the price?
Read our webpage below for details on property management costs in the USA. Keep in mind that all figures listed on this page are based on our data and research. If you want a personalized quotation, get in touch with a property manager near you.
You’ll almost always pay for property management monthly. Some experts offer a discount if you pay for a full year up-front. But there’s no guarantee that your property will be occupied for this entire time – which could make your payment slightly wasted.
Most property management companies charge 10% of your monthly rent. With the average rental figure in the US being $1,700, this comes to around $170 per month.
If your rental price is higher or lower, work out 10% of this number, and then set it as a benchmark. See more guidance on this in the table below.
Your payment could stretch up for 12% of 15% of your monthly fee for a full managed service. But if your property managers are only collecting rent and nothing else, it could drop down to 8%.
| Monthly rent payment | Column 2 |
| $1,000 | $100 |
| $1,400 | $140 |
| $1,800 | $180 |
| $2,200 | $220 |
| $2,600 | $260 |
| $3,000 | $300 |
| $3,400 | $340 |
You typically have three levels of property management service to choose from. The packages that provide you with more support will almost always cost more. But if it saves you time and effort, many people find this worthwhile.
The most basic service you can pay for is tenant selection. This involves marketing the property, showing potential tenants around, checking references, and drawing up tenancy agreements. This service comes with the lowest fee, which is typically a one-off fee calculated as a percentage of your rental rate.
You can hire a property manager to deal with collecting your rental money by opting for a tenant selection and rent collection service. Your property manager will help you to find the right tenant, as well as collecting their rental payments on a weekly or monthly basis. This service generally costs around 8% of the monthly rent.
If you prefer a more comprehensive service, you can choose a full property management service. This includes:
Finding a tenant
Collecting rent
Managing the day-to-day running of the property, including repairs and maintenance
Chasing up missed payments
Dealing with contract renewals
Renegotiating rent rates with existing tenants
If you decide to take a hands-off approach with a fully managed property management service, you’ll find that it comes with the highest price tag. This can range from 10 – 15% of your rental payment depending on your location.
The price of property management depends on several important factors. These include:
Level of service
Location
Rental price
Property manager experience
Administration fees
Number of properties
You should factor all of these in when you decide on your budget. We’ve gone into slightly more detail for each element below.
We’ve looked at this in-depth further above on the page. Some services involve far more support from your property manager than others. If you want them to handle ongoing maintenance, rent disputes, collection, and renegotiating contracts, then it’s going to cost much more. But if you’re only using them for tenant vetting, then it should be a very low price.
Prices for property management can rise or fall, depending on the state you live in. New York is notorious for very high fees in the housing market. And the same applies to California and Texas. But in some of the less densely populated states such as Nebraska, Oklahoma, North Dakota or Kansas, fees tend to fall down significantly. Research your town’s average prices by looking for a property manager near you.
Most property management companies base their prices on a percentage of the monthly rental income of your property. So, the greater the value of your property, the higher your property management fees will be.
You often pay more if you want a manager with lots of experience. They’ll usually make this clear to you when you first discuss bringing them on.
If your property manager is more experienced, they’re (in theory) more likely to make better decisions. They’ve hopefully encountered hundreds of renters over the years, so can spot when an applicant will be reliable, and when they’ll be problematic.
The same applies to them finding nearby handymen and getting the best rates for fixing your house. Well-established connections can pay off in times like this. And it may translate directly into your bank account.
Some property managers will sneak in administration fees, while others won’t. You should keep an eye out for these as they can increase your initial price by a few hundred dollars.
It’s not uncommon for property managers to offer discounts to landlords who have several houses that need looking after. If you’re working with a nationwide company, they could be able to support you across the US. And if you’re working with a local property manager, they can take care of all your houses in the area. While this will increase your total cost, your price per house could be negotiated down.
You should think carefully about the upsides and drawbacks of property management before you jump into it.
Property management is extremely useful if you’re short on time. It saves you having to visit the house in-person yourself. And your stress will be reduced too, because managing the day-to-day running of the property involves concentration and attention to detail.
You can also avoid some of the less enjoyable parts of being a landlord. Chasing late payments from renters is stressful and can involve conflict. Dealing with contract renewals is tiresome, and renegotiating rent rates can create difficult conversations too.
Many experts argue that property managers do a better job at the most important tasks. For example, they can use their expertise to pick a renter that’s trustworthy and more likely to pay on time.
They could also be well-connected to a handyman in the area that’ll do a great job, and make sure all issues are fixed to a high standard. This expertise translates into other areas too, such as legal compliance and maximizing your rent.
On the other hand, some people argue that property management comes with a relatively large fee. Margins can be tight with home ownership, once you factor in the cost of repairs and late payments. So, if your property manager isn’t having to do much, handing over 10% of your income can feel unsettling.
Not everyone is comfortable placing trust in the property management firm to do a great job. When you’re choosing a tenant to move into your house, it can feel much better if you meet them yourself. Perhaps you trust your judgment better than anyone else.
It’s common to want to be heavily involved with the running of your property. If there’s a lot of money on the line, you may feel unhappy with someone else making decisions. This could apply to rent rates, repairs, and contract renewals. Handing over control is not easy.
There can be other hidden fees tucked away in some property management contracts, too. You could get charged with cancellation fees, renewal fees, and maintenance fees. It’s crucial to look closely into a contract before you commit.
| Pros | Column 2 |
| Save time and reduce stress | Relatively high fee |
| Avoid confrontations with renters | No guarantee they’ll pick the right renter |
| More likely to pick a reliable tenant | Handing over control |
| Ensure legal compliance & maximize rent | Potential for hidden fees |
One of the simplest solutions is to take on part of the property management yourself. This doesn’t need to increase your expenses – but you’ll have to give it more time. Some examples include collecting rent, negotiating on new rent rates, and arranging repairs and maintenance.
There’s no shame in trying to negotiate on price with your property manager. Plenty of companies are open to this. In small towns across the US where the local rental market is limited, plenty of property management companies are in fierce competition.
As mentioned further above, some property managers offer a discount if you have several houses for them to look after. This could increase your up-front cost but decrease your price per house. If you were going to hire management for all these properties anyway, it’s worth thinking about.
It’s crucial that you take care with your renter selection at the start of your journey. This will have a huge impact on your ongoing costs. A problematic renter will increase your payments on repairs, and often pay late. Take more time than usual on this initial process if needed, and make sure you get several opinions (your own, plus the property manager, and your friends/family). It’ll pay off in the long run.
You may be tempted to manage your rental property yourself, and it’s perfectly possible to do so. But it can be time-consuming, and you’ll need to do your research to make sure you stay legally compliant.
A property manager will take on the responsibility of:
Finding the right tenant for your property
Completing credit checks
Drawing up their rental contract
Checking their references
Collecting rental payments
Chasing late payments
This all helps to reduce the chances of running into problems later down the line. You can also pay your property manager to deal with communications from your tenant, organizing inspections, repairs, and maintenance.
If you live a distance from your rental property, or if you have several properties to deal with, hiring a property manager can take the load off. You’ll get the perks of being a landlord, without any of the hassle.
Recommendations and reviews are arguably the best way to decide which manager will be best for you. Ask trusted friends and family for their input.
Make sure you meet with the property manager in-person before you hire them. It helps to see them face-to-face and develop rapport. If you’ll be working together for many years, it’s worth trying to understand their character over a coffee.
Look out for hidden costs at the start of your journey. If the company has deliberately avoided this subject, they may be deceitful in other areas too. Don’t sign any restrictive contracts or be pressured into making a quick choice.
Yes, it’s possible to do property management yourself. But many experts don’t recommend this.
You’ll need to allocate time in your schedule to handle things such as rent collections, organizing repairs, and renewing contracts. Mistakes are more likely to be made if you’ve never done any of this before – and these can cost you lots of money.
You should pay close attention to local laws and regulations too. An expert will already know these things. It’s crucial that you don’t break the law. Insurance, deposits, and safety certificates are examples of other things you’ll need to take care of.
If all of this sounds like too much to handle, hire an expert to do it for you.
Some landlords are happy to manage their own rental properties, sourcing their own tenants and collecting their own rent. However, other landlords prefer to hire a property manager to manage the letting process for them, allowing them to take a more hands-off approach.
Property managers are the experts when it comes to the rental market. They can help you to find the right tenants, collect weekly or monthly rental payments and manage the day-to-day running of the property including inspections, repairs, and maintenance.
It doesn’t matter whether you’re new to being a landlord or you own a whole portfolio of rental properties, hiring a property manager to manage your rental property can save you both time and stress, as well as maximizing your rental income.
The average rating for Bark Property Managers is 4.73, based on 40,188 reviews
5/5
based on 40,188 reviews
