Based off the pricing information we collected in our review of the best residential property management companies in Houston TX, we found that:
- 8.3% is the average monthly management fee in Houston for owners with one single-family home, with ranges spanning between 6-13% of the monthly rent depending on the tier of service and number of units.
- $101 is the average flat rate monthly management fee in Houston for owners with one single-family home, with ranges spanning between $70-$400 per month depending on the tier of service.
- Most Houston property managers provide volume discounts for owners with multiple units (i.e. 8% instead of 10% or $120 instead of $150 for 8+ units).
- 1 month’s rent is the most typical leasing fee for tenant placement services in Houston. However, some charge less (i.e. 50-75%) to owners that also pay for full-service management, especially for “premium” management plans that cost more monthly.
Read further to learn more about how property management companies price their core services, which Houston property managers charge what, and which other types of fees you might come across in a property management contract.
Management Fee
The most common way full-service property management is priced is through a monthly fee. This is usually calculated as a percentage of rent, but occasionally as a flat fee per unit. This fee typically covers things like rent collection, tenant communication and financial reporting, but the full list of services varies by provider.
Through pricing information from 13 of Houston’s top rated property managers, we found that 8.3%/$101 was the average monthly management fee. Here’s what each of those 13 companies charge:
- Mynd Management – $79-$139 per month, depending on plan
- Terra Residential Services, Inc. – 10% of monthly rent
- Shannon Property Management – 4-10% of the monthly rent varying based on monthly rental price of property and property attributes, as well as portfolio size
- Emerson Property Management – $249-$399 per month, depending on package, or $125 a la carte
- First Class Realty & Management – $95-$135 per month, depending on plan
- RentLife Property Management – 7.99% of monthly rent for full service (minimum $100/month) or 12% of monthly rent for premium service (minimum $120/month)
- StressFree Property Solutions – from $69.95 per month
- Edinson Management – 10% of monthly rent
- Real Property Management Preferred – 7.9-12.9% of monthly rent depending on plan
- Renters Warehouse – $119-$229 per month, depending on the number of units and tier of plan chosen
- Brightline Property Management – $119 for Full Service Management or 10% of monthly rent for Full Service Management PLUS
- TEXdot Property Management, Inc – $85.00 for properties that rent for $1,199.00 per month or less, and $95.00 for properties that rent for $1,200.00 per month or more.
- AIM Realty, Inc. – 7% of monthly rent
The national average monthly property management fee is 10%.
Tenant Placement (Leasing) Fee
Most property management companies charge an additional fee for placing a new tenant in a vacant property. This process includes placing rental ads, screening applicants, processing the lease and preparing the property for move-in. Some property managers offer this as a stand-alone service, while others only offer it to clients that pay for on-going management.
Through pricing information from 11 of Houston’s top rated property managers, we found that 1 month’s rent was the typical tenant placement fee, though multiple factors affect the final amount. Here’s what each of those 11 companies charge:
- Mynd Management – 25-100% of one month’s rent depending on the plan
- Shannon Property Management – 75% of 1 month’s rent with management or 100% of 1 month’s rent for placement-only
- Terra Residential Services, Inc. – 1 month’s rent
- Emerson Property Management – 1 month’s rent
- First Class Realty & Management – 75% to 100% of first month’s rent, depending on the plan
- RentLife Property Management – 75% to 100% of one month’s rent depending on plan or 1 month’s rent (minimum $1,000) for placement-only
- Edinson Management – 1 month’s rent
- Real Property Management Preferred – 60-100% of 1 month’s rent, depending on the package
- Brightline Property Management – 1 month’s rent
- TEXdot Property Management, Inc – 8.334% of the gross rents to be paid under the lease
- AIM Realty, Inc. – 1 month’s rent
Nationally, the typical tenant placement fee is between 75% and 1 month’s rent, with lower rates often accompanying management plans.
Lease Renewal Fee
While under contract for managing a property, some companies charge the owner a fee when a tenant renews their lease. This fee, which is usually much smaller than a new tenant placement fee, acts as a reward to the property manager for keeping tenants longer and having less turnover.
Through pricing information from 6 of Houston’s top rated property managers, it was difficult to deduce an average/typical fee. Here’s what each of those 6 companies charge:
- Mynd Management – $199-$349 per lease, depending on the plan
- Terra Residential Services, Inc. – 20% of one month’s rent
- Emerson Property Management – 50% of one month’s rent
- First Class Realty & Management – $150-$250, depending on the plan
- Edinson Management – 10% only if 1 year is procured
- AIM Realty, Inc. – $100
Nationally, the typical lease renewal fee is about $200.
Additional Fees
Beyond the above three types of fees, property management firms may charge for additional services that aren’t covered within their standard management fee. These include but are not limited to:
- Account Setup Fee: a one time charge for onboarding a new owner.
- Inspection Fee: to check if the tenant is causing damage to the property and/or see if there are issues with the property that require fixing, some companies cover a regular inspection in their management fee (i.e. one per year), while others charge an additional fee and conduct them at the request of the owner.
- Eviction Assistance Fee: a charge for overseeing and completing the eviction process, which is usually not covered under a standard monthly management fee.
- Repairs: if an issue with the property requires a repair, it’s usually not the property manager’s responsibility to cover and is typically passed on to the owner.
- Early Termination Fee: an owner is typically charged an additional fee if they terminate their property management contract prematurely.
To learn more about the various types of property management fees and how much they typically are, click here.
