Phoenix Property Management Fees

Last Updated: February 18, 2022

Phoenix fees on iPropertyManagement.com

Based off the pricing information we collected in our review of the best residential property management companies in Phoenix AZ, we found that:

  • 8.7% is the average monthly management fee in Phoenix for owners with one single-family home, with ranges spanning between 6-12% of the monthly rent depending on the tier of service and number of units.
  • $78 is the average flat rate monthly management fee in Phoenix for owners with one single-family home, with ranges spanning between $69-$199 per month depending on the tier of service.
  • Most Phoenix property managers provide volume discounts for owners with multiple units (i.e. 8% instead of 10% or $120 instead of $150 for 8+ units).
  • 50% of one month’s rent is the most typical leasing fee for tenant placement services in Phoenix. However, some charge more (i.e. 100%) to owners that are only seeking tenant placement without management plans.

Read further to learn more about how property management companies price their core services, which Phoenix 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.

Note: if a company’s management fee is a percentage of rent, make sure it’s for rent collected, NOT rent due. If a tenant isn’t paying you, you shouldn’t be paying the property manager.

Through pricing information from 18 of Phoenix’s top rated property managers, we found that 8.7% / $78 was the average monthly management fee. Here’s what each of those 18 companies charge:

  • Simply Property Management – 7-10% of monthly rent (min. $95/month), plus $30-50 depending on plan
  • Paramount Management & Realty – $89 per month or 4-6% of monthly rent for multi-family management, depending on property size
  • Service Star Realty – $69 to $199, depending on plan
  • SGI Property Management – 8% or $109 per month, depending on the plan chosen
  • Active Renter – 7.9% to 11.9% of monthly rent, depending on plan
  • Real Property Management Evolve – $69 – $119, depending on plan
  • HomeQwik – $89 – $189, depending on plan
  • Real Property Management Phoenix Valley – $69 for basic, $115 for professional, and a variable percentage of rent per month for multi-family properties.
  • ProEx Realty Management – 8% of collected rent per month
  • Brewer & Stratton Property Management – $75 per month
  • Red Hawk Property Management – $89/month, but only when unit is occupied
  • Mosaic Properties – $75 per month per unit
  • Key Renter Premier Property Management – 9-11% of monthly rent for 1-2 properties, depending on plan and 6-7% of monthly rent for 3+ properties, depending on the portfolio size & type
  • On Q Property Management – $75 per month
  • Renters Warehouse Phoenix – $99 per month per unit
  • Rentals America Phoenix – $99 per month
  • AZ Prime Property and Real Estate Management – 10% of collected rents; for 3 or more units, the fee is 8%
  • Mynd Management – $60 – $75 per month, depending on number of properties

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 12 of Phoenix’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 12 companies charge:

  • Simply Property Management – 1 month’s rent ($800 min.) for tenant placement only
  • Paramount Management & Realty – 7% of gross lease, or 50% of one month’s rent with management plan
  • SGI Property Management – 50% of one month’s rent or $599, depending on the plan chosen
  • Active Renter – 1 month’s rent for tenant placement only
  • HomeQwik – 1 month’s rent for placement-only services. $600 for basic management package, fee included with gold and platinum package
  • ProEx Realty Management – 50% of one month’s rent with management or 1 full month’s rent for tenant placement only
  • Brewer & Stratton Property Management – $499
  • Red Hawk Property Management – 50% of one month’s rent
  • Key Renter Premier Property Management – 50% of first month’s rent (minimum $1000)
  • Rentals America Phoenix – 50% of one month’s rent
  • AZ Prime Property and Real Estate Management – 6% of total lease
  • Mynd Management – 50% of one 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 8 of Phoenix’s top rated property managers, we found that $152 was the average lease renewal fee, but some companies offer free renewals with premium management plans. Here’s what each of those 8 companies charge:

  • Simply Property Management – $120 – $140, depending on plan
  • Paramount Management & Realty – $145/lease
  • Paramount Management & Realty – $145/lease
  • Real Property Management Evolve – $199 per renewal on the standard plan, no cost (free) on the platinum plan
  • HomeQwik – $200 flat fee for the standard package, no cost for gold or platinum
  • Red Hawk Property Management – $75, only charged on leases one year in length or longer
  • AZ Prime Property and Real Estate Management – $150
  • Mynd Management – $199

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.