Understanding Property Management Costs in 2023

When you hire a property management team to take care of your property, you want to know what’s covered in the monthly fee. Property management fees are usually broken down as a percentage of the rent or flat fee based on the number of units you have. 

Some property management companies charge a fixed fee, for example, $100 monthly for a single-family home. However, this may vary by market. While a flat fee may seem attractive, management companies may need to be more motivated to maximize rental income.

Property management companies may charge between 8% to 12% of the monthly rent, so it’s essential to know what’s involved. 

Let’s break down some of the most common fees associated with property management. Then, you can make the best decision possible when outsourcing the care and management of your asset. 

Fees for property management companies vary

Different property management companies offer different types of services. Within those 

services, the exact costs are decided based on various unique factors – such as the size, style, condition, and location of a property. 

For example, a large, commercial REO property has more extensive management needs than a small, single-family home. Older properties tend to have more maintenance and upkeep needs than newer buildings.  

Property management fees also vary depending on the amount of work required. For example, a small multifamily building with three or four units will require more work than a single-family home. 

Factors that affect property management fees include:

When choosing a property management company, it is important to compare fees and services to find the best fit for your needs.

Monthly property management fees

Usually, property management fees are paid in the form of a certain percentage of the property’s income. Larger apartment buildings may have a lower percentage, but the overall income is higher, which may also translate to higher fees.

Fees entail ongoing tasks that need monthly upkeep when caring for a property. These include making sure tenants pay rent, processing rent, and keeping up with all inspections. 


Daily or weekly tasks of caring for a property include leaf blowing, taking out garbage, and snow removal. 

In addition to routine maintenance (which should be decided on ahead of time), this cost would include some repairs, as needed. 


Evictions can strain property owners and landlords, which is why having a property manager makes the process much simpler. 

Larger property management companies may handle evictions in-house, while others may hire a lawyer. Eviction fees may cost you around $500 plus legal fees. Collections agencies may charge 50% of the amount collected.

An eviction fee covers the entire process from start to finish – minimizing hassle and reducing vacancy time. 

Repairs and maintenance

Top-notch property management companies will have a well-established network of reliable 

contractors or an in-house, full-time maintenance team. Most vendors offer management companies discounts in exchange for their business, so repair and maintenance costs are expected to be lower than what you could find on your own.

During your interviews with prospective property management firms, inquire about any labor or supply cost markups. 

Many property management companies will charge a project management fee if you are making significant changes to your property. Ensuring the work is done correctly may cost around 10% of the project value.


Property management companies also handle leasing, which can be a time-consuming process. Here’s a more in-depth look at how property management companies handle leasing: 

What to look for in a property management company

The right property management company saves you time while giving you peace of mind that you can spend your focus elsewhere. You can trust that a property management company can handle the day-to-day operations and larger projects that may arise with your property.

When researching and talking to various companies, beyond understanding what fees are involved, ask about their communication styles and methods of handling problems. 

Here are ways to help you narrow down your search and vet a reliable property management company:

Finding the right partner

You understand the investment potential of trusting them to keep your property in tip-top shape, and they see the long-term benefits.

The right property management company is a worthwhile investment in the longevity and performance of your property – not just another expense. 

The right property management company should be a solid partnership. 

Here’s what to consider: 

How VRM can help with your property management needs

In your search for a reputable property management company, consider VRM Mortgage Services. We’ve been in business for 17 years and have an extensive network of licensed experts who can help you with your property needs. 

We’re a total solution provider for mortgage servicing and more, including management for properties of all sizes, property preservation, personalized mortgage loans, and short sale services. Within property management, we can help with dispute resolution, tenant screening, marketing and leasing, and maintenance and repairs. 

VRM helps you mitigate risks, avoid fines, and get the most value through our extensive network of professional vendors.  

Reach out to a VRM team member to find out more. We can discuss your options, develop a tailored plan, or answer any questions.[/vc_column_text][/vc_column][/vc_row]