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A property manager is usually paid a percent of collected rent, plus a separate leasing fee when a new tenant moves in. NARPM told the FTC in April 2026 that its members typically earn eight to twelve percent of collected rent. That percent hits every occupied month. One leasing fee can match a full year of the percent on a single turnover.
By RentalAnalytics Editorial Team · Published October 19, 2026
Most charge a percent of collected rent, and many add a leasing fee. In an April 10, 2026 letter to the Federal Trade Commission, the National Association of Residential Property Managers wrote that its members earn a fee "typically eight to twelve percent of collected rent." Those members are small and mid-size firms acting for individual owners. NARPM FTC comment letter (PDF)
Stessa's breakdown, updated November 14, 2025, uses the same band: most companies charge 8% to 12% of monthly rent collected. Its illustration is $1,200 rent at 10%, or $120 a month. The article also says a single-family flat fee may run around $100 a month, setup is often around $300, and most firms collect half to one month of rent to lease. Some charge no leasing fee. Renewals, when billed, are small or sometimes free. Stessa, "How Much Do Property Managers Charge?"
Stessa also reports extras: 25% to 50% of a late fee, about 10% to oversee a large update, an eviction near $500 plus legal costs, and early-exit terms from one month of the manager's income up to a dispute. Read the agreement.
The operating expense benchmark uses a narrower illustrative management band: 6% to 10% of EGI, mid 8%. The file is a 2024-Q4 national comparison, not a fee survey. Price the manager with NARPM's 8% to 12%. Use the benchmark to see whether that fee is large next to taxes, insurance, and repairs.
The 50% Rule for Rentals: Test It With Real Opex Data tests a half-of-rent operating guess against those same bands.
It comes out before NOI, in every month the percent applies. The cash flow analyzer subtracts vacancy from gross rent, then multiplies the percent by what remains. A 10% fee is 10% of modeled collections. A flat charge during a vacant month has to be typed in. The percent field will not add it.
Round example, not a listing. Rent is $2,000. Vacancy is 5%. EGI is $2,000 × 12 × 0.95 = $22,800. Tax is $2,400, insurance is $1,400, and maintenance is $100 a month ($1,200). Those three lines are $5,000 either way.
| Case | Management | Annual fee | NOI |
|---|---|---|---|
| Self-manage | 0% | $0 | $17,800 |
| Low end of the NARPM range | 8% of EGI | $1,824 | $15,976 |
| Middle of the range | 10% of EGI | $2,280 | $15,520 |
| High end of the NARPM range | 12% of EGI | $2,736 | $15,064 |
Self-managing versus 10% costs $2,280 of NOI, or $190 a month. From 8% to 12% is another $912. Taxes and insurance stay put.
A turnover year adds the leasing fee. Stessa's half-month to one-month range on $2,000 rent is $1,000 to $2,000. Setup near $300 is a first-year cost. Stack $2,280 at 10%, a $2,000 leasing fee, and $300 setup, and the year is $4,580, or 20% of EGI. A renewal with no renewal fee drops the line back to $2,280.
Add a loan in the cash flow analyzer if you want cash flow after debt. The fee does not change principal and interest. It changes the income left to pay them. Paint and carpet at turnover sit with the leasing event. The tool's maintenance line is recurring upkeep.
When the manager blocks a cost bigger than the fee, or covers work you cannot do from where you live.
Distance. Managing a rental out of state treats a local manager as the usual choice, because showings and leaks do not wait on a flight. A handyman plus a leasing agent can work if you answer repairs the same day and know that state's notice rules. If you cannot, compare the fee with the $190 a month in the example.
Turnover. The real cost of tenant turnover and vacancy splits a move-out into empty days, make-ready, leasing, and your time. That post's round example is an $1,800 unit, 30 empty days, $700 make-ready, $150 listing and screening, and $480 of priced time, or $3,130, with lost rent over half. A shorter vacancy can cover a 10% fee. A full empty month plus a full leasing fee stacks the percent on the empty days.
Self-managing. Set the percent to 0 and keep every other line. The gap versus 8% to 12% is the annual price of handing the building over. Nearby, with a repair contact, you keep that gap. If the gap is $2,280 and one slow turnover costs more, the fee is the smaller check.
Before you sign, ask whether the percent hits collected rent or scheduled rent, what the leasing and renewal fees are, and what a vacant month costs. Those three answers move the model more than one point inside 8% to 12%.
Run both percents on one rent and one vacancy rate.
NARPM's April 2026 letter says 8% to 12% of collected rent. Stessa matches that range and mentions a flat fee around $100 a month for a house. Model the signed percent.
Usually no. Stessa says most firms charge half to one month of rent to lease, and some charge nothing. Add that fee in a year with a new tenant.
It bills the percent on EGI after your vacancy rate. A vacant flat fee has to be added by hand.
Yes, then also run 8% to 12% so the NOI gap is visible. If you cannot answer repairs the same day, zero is an incomplete case.
Set a year of fees, leasing included, against the turnover you hope to skip. At $2,000 rent, 10% is $2,280. A month of lost rent plus a one-month leasing fee is already larger.
Yes. The percent does not cover taxes, insurance, or maintenance. Stessa says some firms also add about 10% of a large project on top of the vendor bill.
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