July 18, 2026
Ten percent to a manager, and what it does not cover
The management fee is the part everybody models. The leasing fee, the renewal fee and the markup on repairs decide what management actually costs.
Desmond Clarke
July 18, 2026 · 2 min read
Management is modeled as a percentage of rent, on our listings and everywhere else, and the percentage is the smallest part of the bill.
What the percentage buys
Rent collected, calls answered, a contractor sent, statements produced, and the eviction handled if it comes to that. Eight to twelve percent of collected rent, and it is fair value for the work.
Note collected. A month with no tenant is a month with no fee, which is the one part of this that is on your side.
What it does not buy
- The leasing fee. Half a month's rent to a full month, every time the property turns over. On an eighteen-month average tenancy that is another three to five percent of rent, spread over the year.
- The renewal fee. A few hundred dollars for a signature, charged by most managers, and cheaper than a leasing fee by a wide margin.
- The markup on maintenance. Ten percent on top of the contractor's invoice is common and is often the largest of the three.
- The setup fee, once, at the start.
Add them up on a house that turns over every eighteen months and management costs something closer to fourteen percent than ten.
What to ask before you sign
- What is the leasing fee, and is it charged again on a tenant you found?
- Is there a markup on repairs, and what is it?
- What is the threshold for spending without calling me?
- How many units does the person who will actually answer my calls look after?
The fourth question is the one that predicts the next two years, and it is the one nobody asks.
On the listing
Our management line is a percentage of gross rent and it is an assumption you can change. If you have a quote in hand, put the real number in -- including what the leasing fee comes to across an average tenancy -- and read the cash flow again.
