What are the types of fees that can be earned in property management?

While property managers and property management companies are hired by property owners, they charge fees to both owners and tenants. Also, if you've asked your property manager to be responsibile for maintenance and repairs, they may also place a mark up on contractors they hire on your behalf. Or, they may actually own a maintenance company that has an exclusive contract to maintain all their properties. All of this should be disclosed and discusseed with property owners before entering a contract.

Fees charged to owners:

  • A percentage of the monthy rent or a flat fee
  • 50% or more of the first months rent when they find a new tenant
  • Tax document prepartion fees
  • Maintenance and repair fees
  • Eviction processing fees
Fees charged to tenants:
  • Rental application/credit check fees
  • Nuisance service call fees (e.g. repair requests that result from tenant errors)
  • Late payment fees

Additonal information on property mangement fees can be found at sites like Allpropertymanagement.com and NARPM.org.