Free Tool
Property Management Cost Calculator
See what a property manager actually costs — and how much you’d save self-managing with LeaseBase.
Uses real market data by state. Includes management fees, leasing fees, and hidden maintenance markups most PMs don’t advertise.
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What Property Managers Actually Charge
Property management fees look simple on paper — typically 8–10% of monthly rent — but the real cost is much higher once you account for the fees that aren’t in the headline number.
Management fee (8–10% of monthly rent): This is the base monthly fee. For a $2,000/month rental, that’s $160–$200/month just for day-to-day management. For a portfolio of 5 units, you’re looking at $9,600–$12,000 per year before any other fees.
Leasing/placement fee (50–100% of first month’s rent): Every time a tenant turns over, you pay this fee again. With the national average tenancy at about 2 years, you’re paying half a month’s rent per unit per year on average.
Maintenance markup (10–20% of repair costs): Most PMs add a markup on every maintenance job — on top of what the contractor charges. Industry estimates put maintenance spending at roughly 15% of annual rent, and PMs typically mark that up 10–20%.
Other fees you might not see: Lease renewal fees ($150–$300 per renewal), vacancy fees (charged while the unit sits empty), advertising fees, inspection fees, and early termination fees if you leave the PM contract.
Hidden Costs Your PM Won’t Tell You
The advertised management fee is just the starting point. Here are the costs that quietly erode your rental income:
- Maintenance markups — PMs routinely add 10–20% to every repair bill. A $500 plumbing job becomes $550–$600, and you may never see the original invoice.
- Vendor kickbacks — Some PMs use preferred vendors who charge above-market rates in exchange for guaranteed volume. The PM gets the relationship benefit; you pay the inflated price.
- Lease renewal fees — $150–$300 every time a tenant renews their lease. For a multi-unit property, this adds up to hundreds per year even without turnover.
- Vacancy fees — Some PMs charge a flat monthly fee even while units sit empty. You pay for management of a unit producing zero income.
- Advertising and showing fees — Listing the unit on rental platforms, photography, and showing the property to prospective tenants — services that cost PMs very little but are billed at $100–$500 per vacancy.
- Communication tax — Every call, email, or text to your PM is time they bill for. Some charge per-incident fees for tenant issues, even minor ones.
- Contract lock-in — Early termination fees of $500–$2,000+ if you decide to self-manage or switch PMs before the contract ends.
LeaseBase handles compliance, rent collection, and maintenance in one place.
Try Free →Self-Managing vs. Hiring a Property Manager
See what you get with a traditional PM versus LeaseBase at each tier.
| Capability | Traditional PM | Platform $19/mo | Assistant $49/mo | Operator $99/mo |
|---|---|---|---|---|
| Rent collection | Included | ✓ | ✓ | ✓ |
| Lease creation & e-sign | Included | ✓ | ✓ | ✓ |
| Maintenance coordination | + 10–20% markup | ✓ | ✓ | ✓ |
| Tenant screening | + fee per app | — | ✓ | ✓ |
| Compliance tracking | Manual / varies | ✓ | ✓ | ✓ |
| AI landlord assistant | — | — | ✓ | ✓ |
| Financial reporting | Monthly PDF | Real-time | Real-time | Real-time |
| Enforcement & notices | Attorney referral | — | — | ✓ |
| Direct owner control | Limited | Full | Full | Full |
| Annual cost (3 units @ $2K) | $8,460+ | $228 | $588 | $1,188 |
Frequently Asked Questions
How much does a property manager cost per month?
Most property managers charge 8–10% of monthly rent as their base management fee. For a $2,000/month rental, that’s $160–$200/month. But the true cost is 15–20% higher when you include leasing fees, maintenance markups, and renewal fees. Our calculator accounts for all these hidden costs to show you the real annual expense.
Is it worth self-managing my rental property?
For landlords with 1–25 units, self-managing with modern software typically saves $2,000–$15,000+ per year compared to hiring a PM. With tools like LeaseBase handling rent collection, lease creation, compliance tracking, and maintenance coordination, the day-to-day work is manageable even with a full-time job. The key is having the right systems — not spending hours on spreadsheets.
What’s included in a property manager’s fee?
The base management fee (8–10%) typically covers rent collection, tenant communication, routine inspections, and basic bookkeeping. However, most PMs charge separately for tenant placement (50–100% of first month’s rent), lease renewals ($150–$300), maintenance coordination (10–20% markup on repairs), eviction handling, and advertising vacant units. Always ask for a full fee schedule before signing.
How do I transition from a PM to self-managing?
Start by reviewing your PM contract for termination terms and notice requirements (typically 30–60 days). Set up your property management software (LeaseBase offers free lease import from your PM’s records). Collect all tenant contact information, lease copies, and maintenance history. Notify tenants of the management change and new payment instructions. Most landlords report the transition takes 1–2 weeks with the right tools in place.
What are typical PM fees by state?
PM fees vary by state and market. Higher-cost states like California, New York, and Massachusetts tend to have lower percentage fees (8%) because the dollar amount is higher. States with lower average rents like Alabama, Mississippi, and Arkansas typically charge 10%. Leasing fees also vary: 50–75% of first month’s rent in most states, but up to 100% in competitive markets like New York, Connecticut, and Hawaii. Our calculator uses state-specific data for accuracy.
Can I save money by negotiating PM fees?
You can sometimes negotiate the management fee down 1–2% for multi-unit portfolios, but PMs often make up the difference through higher leasing fees, maintenance markups, or added service charges. The most effective way to reduce property management costs is to self-manage using software that handles the operational complexity for you — saving the full 8–10% management fee plus all the hidden costs.
Now that you know the real cost…
Landlords who calculate PM costs usually explore these next.
Related Resources
Guide to Self-Managing Your Rental
Everything you need to know about managing rental properties yourself — from finding tenants to handling maintenance.
Read the full guide →Landlord-Tenant Laws by State
Compare rent caps, deposit limits, eviction rules, and compliance requirements across all 50 states.
Compare states →California Landlord Compliance Checklist
Every law, deadline, and form California landlords need to know in 2026.
Read the checklist →PM Software Comparison
13 property management platforms compared side-by-side: features, pricing, pros and cons.
See the comparison →Run your rentals like a pro — without the property manager
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