Property management commonly charges both an ongoing percentage-of-rent fee and a separate leasing fee whenever a new tenant is placed.
How it works
Monthly rent times the management fee percentage, annualized, gives the ongoing management cost. Adding the leasing fee (charged per turnover) gives the total annual cost, subtracted from gross annual rent for net rent after management.
What this does not include
Some property managers charge additional fees (maintenance markup, late-fee splits, renewal fees) beyond the core management and leasing fees modeled here — always check a specific management agreement’s full fee schedule.
How to use this calculator
- Enter monthly rent, management fee percentage, leasing fee, and expected turnovers per year.
Frequently asked questions
What’s a typical property management fee?
Often cited in the 8%-12% of rent range, though rates vary by market, property type, and the specific services included.
Why is a separate leasing fee charged?
It compensates the manager for the extra work of marketing the vacancy, screening tenants, and executing a new lease — work that only happens at turnover, not every month.
Is self-managing always more profitable than hiring a manager?
Financially, often yes on paper — but self-managing requires the owner’s own time and expertise, a real cost this calculator’s pure dollar comparison doesn’t capture.
