Property Management Fee

Property management fees are the biggest recurring expense on a PM managed rental after the mortgage. The industry standard is 6% to 12% of collected monthly rent, with single family rentals usually clustering at 8% to 10% and small multifamily trending toward the 6% to 8% range. Some PMs charge a flat monthly fee instead of a percentage, which can be more or less expensive depending on the rent amount. Most PMs also charge additional fees on top of the base management fee: a leasing fee of one half to one full month's rent for placing a new tenant, a renewal fee of $100 to $300 when an existing tenant renews, maintenance markups of 10% to 20% on contractor invoices, and sometimes a setup fee when you first onboard. Reading the management agreement carefully before signing is critical because the fine print is where PMs make most of their money. Fee benchmarking across your portfolio and against market averages is one of the biggest opportunities investors miss, and it is one of the features Knox flags automatically inside DoorVault's PM Report Card.