If you’ve ever caught yourself wondering, “Are these property management fees really worth it?” You’re not alone. For many rental property owners, especially those new to the game, understanding what you’re paying for (and whether you’re being overcharged) can feel like a mystery.
Let’s break that down so you can make smart, confident decisions for your rental property.
What Do Property Managers Typically Charge?
Property management fees can vary based on the type of property, location, and level of service, but here’s a quick snapshot of what’s common in most residential markets:
- Monthly Management Fee: This is the core fee you’ll pay, typically between 8% to 12% of the monthly rental income. Some flat-fee models exist, but most reputable firms stick with a percentage because it scales with property value and workload.
- Leasing or Placement Fee: When a new tenant is placed, managers usually charge a one-time fee. This often ranges from 50% to 100% of one month’s rent.
- Renewal Fees: If your current tenant signs a new lease, you might be charged a renewal fee, which can be $100–$300 or a small percentage of rent.
- Maintenance Markups or Coordination Fees: Some firms add a markup (usually 10%–15%) to vendor bills for repairs or charge a separate coordination fee. This helps cover the effort of scheduling, follow-ups, and ensuring quality work.
- Vacancy Fees or Setup Charges: Be cautious of companies charging fees while your unit is vacant or charging setup fees over $250. These aren’t always standard, and often a red flag.
What’s Included in the Cost?
This is where transparency really matters. When comparing companies, don’t just look at the price tag, look at what’s included. A great property management company should offer:
- Tenant screening
- Rent collection & accounting
- Maintenance coordination
- Legal compliance and notice handling
- Owner portal access
- Regular property inspections
- Eviction processing (as needed)
At SJA Property Management, for example, we don’t just manage, we protect your investment. Our pricing is straightforward, and we back it with 8 powerful service guarantees, including a No Fee Cancellation Guarantee, so you’re never stuck in a relationship that isn’t working.
Are You Paying Too Much?
If your fees are significantly higher than industry norms and you’re not getting stellar communication, quick turnaround times, or transparent reporting, it may be time to reconsider.
Ask yourself:
- Are repairs handled efficiently?
- Do I receive regular financial updates?
- Are tenant concerns resolved quickly and professionally?
- Is the team responsive when I reach out?
If the answer to any of these is “no,” it’s not about what you’re paying, it’s what you’re not getting in return.
How to Compare Fees and Value
When reviewing property management companies:
- Request a full fee schedule – Some companies hide fees in the fine print.
- Ask for a sample monthly owner report – Transparency is everything.
- Read reviews and testimonials – What do other landlords say about value?
- Look for guarantees – These show accountability and confidence in their service.
It’s easy to focus on what you’re paying, but the real question is: What’s the cost of not having a reliable property management team?
Hidden vacancies, poor tenant screening, legal mishaps, and maintenance delays can cost you thousands, far more than a fair monthly fee.
So whether you’re shopping around or wondering if it’s time to switch, don’t just think in terms of cost. Think in terms of peace of mind, property performance, and profit protection.
Don’t Just Pay for Property Management, Invest in Peace of Mind
At the end of the day, it’s not just about how much property management costs, it’s about what you’re actually getting in return. If you’re paying premium fees but still chasing updates, managing headaches, or wondering where your money’s going, it might be time for a second look.
You deserve a team that values your time, protects your investment, and treats your property like their own.
At SJA Property Management, transparency isn’t a buzzword, it’s how we do business. No guesswork, no hidden fees, just reliable service backed by real guarantees.
Curious what a better experience could look like?
Get in touch for a no-pressure fee review, and let’s see how we can simplify things for you.
