Highlights. We researched property management companies across 80 metropolitan areas to determine common service fees and how property managers charge for their services.
- Property managers from our sample charge an average management fee equivalent to 8.49% of the total monthly rent.
- Setup fees average $185.24.
- Lease renewals are usually a flat rate at an average $211.92.
- Inspections cost an average $106.72.
- Tenant placement services are usually based on a percentage of a unit’s monthly rent and average 70.6% with management services (81.8% for tenant placement only).
Monthly Management Fees
The most common service property managers provide is the day-to-day operation of a real estate property. This includes rent collection, arranging for maintenance and repairs, and commuicating with tenants.
- Among companies that advertise management service fees based on a share of collected rent, the average rate is 8.49%.
- The lowest advertised management fee we found is 3.75%; the highest advertised rate we found is 14.0%.
- Among surveyed companies that charge a flat fee for management, the average fee is $101.04 per unit, per month.
- The lowest advertised monthly flat rate we found is $49.00; the highest advertised rate we found is $250.00.
Average Tenant Placement Fees
Tenant placement includes tenant screening, which may involve generating a credit report and checking references. Most property management companies offer tenant placement as an à la carte service; fees for tenant placement are generally lower when paired with management services.
- Among property management companies that charge for tenant placement in addition to management services, the average charge is 70.6% of rent collected.
- The lowest advertised rate is 6.00% while the highest advertised rate is 125%.
- Among companies that charge for tenant placement only as a separate service, the average fee is 81.8%.
- The lowest advertised rate we found is 8.00%; the highest we found is 150%.
- At least 8.17% of property management companies surveyed offer flat rates for tenant placement services.
- Among these companies, the average flat rate for tenant placement with management services is $555.53.
- The lowest advertised rate we found is $99.00; the highest advertised rate we found is $1,200.
- For tenant placement only, the average rate (among the comparatively few companies that offer a flat rate) is $670.23.
- The lowest advertised rate we found is $99.00 while the highest rate we found is $2,995.
Average Lease Renewal Fees
Tenant retention is important to owners and investors. Lease renewals conserve financial resources and are generally preferable to new tenant placement.
- Among property management companies that charge to process lease renewals, 83.4% charge a flat fee.
- The average fee for property management companies that charge a flat rate for lease renewal is $231.77.
- The lowest flat fee we found advertised is $32.00; the highest fee we found is $1,000.
- Among property management companies that charge a percentage of unit rent for a lease renewal, the average rate is 30.33%.
- The lowest advertised rate we found is 10.0%; the highest rate we found is 100%.
Average Setup & Inspection Fees
Setups and inspections are often charged as one-time fees. Setup of a tenant’s account is a one-time cost while regular unit inspections are critical to effective property management.
- Property management companies that advertise a setup fee charge an average of $185.24 per contract.
- The lowest advertised setup fee we found is $45.00; the highest fee we found advertised is $850.00.
- Among property management companies that charge a fee for inspections, the average cost is $106.72 each.
- The lowest advertised inspection fee we found is $15.00; the highest advertised fee we found is $350.00
- The median fee for a unit inspection is $182.50.
Average Maintenance & Other One-Time Fees
Property managers often keep a maintenance reserve to cover minor repairs. Repairs that exceed the cost of the maintenance reserve generally require approval from the property owner.
- Property management companies typically have a maintenance reserve of $250.00 per unit; some require an additional owner-funded reserve to be held in trust.
- Property management companies may charge a fee for termination of service.
- While property managers may charge a fee for vacant units and evictions, excessive vacancies may be grounds for termination of service (in which case, the property owner would be exempt from the termination fee).
Average Property Management Fees by State
Some markets can support hundreds of property management companies while others may be home to less than a dozen. While every market has its outliers, we’ve selected some samples that we consider representative of what’s fair within certain markets.
- These selected market samples include 67.0% of surveyed property management companies.
- These samples also represent 58.2% of iPM surveyed markets or 12.0% of all urban markets nationwide.
- The average management service fee among these samples is 8.71% of collected rent.
- Based on management service fees alone, California and Washington are home to some of the most expensive property management companies in large urban markets.
Average Property Management Fees in Arizona
Arizona property management companies employ 7,190 workers total. The Arizona sample of property management companies includes 47 locations across four (4) metropolitan markets: Phoenix, Prescott, Scottsdale, and Tucson.
- Among surveyed property management companies that disclose a management fee, the average rate is 8.92% of collected rent or a flat fee of $85.42.
- The average fee for tenant placement only among those who charge a percentage of unit rent is 80.9%.
- Property management companies that disclose the cost of tenant placement bundled with management services charge an average rate of 53.9% of collected rent.
- Among the few companies that charge a flat rate for tenant placement with management, the average fee is $466.67.
- Too few from the Arizona sample charge a flat fee for tenant placement only to derive any statistical meaning.
- Among property management companies that charge inspection fees, the average cost is $99.17 each.
- Setup fees average $174.25 among those companies that disclose such fees.
Average Property Management Fees in California
California property management companies employ 37,630 statewide. Our sample of California property management companies includes 143 locations in 14 metropolitan areas* across the state.
- Among surveyed property management companies in California that disclose a management fee, the average rate is 7.44% of collected rent or a flat fee of $111.61.
- The average fee for tenant placement only in California among those who charge a percentage of unit rent is 74.0% or a flat fee of $770.12.
- Companies from the California sample that disclose the cost of tenant placement bundled with management services charge an average rate of 57.8% of collected rent.
- Among companies from the California sample that charge a flat rate for tenant placement with management, the average fee is $604.59.
- The average fee for lease renewal is $206.75 among companies from the California sample that charge a flat rate.
- Among property management companies from the California sample that charge inspection fees, the average cost is $99.65 each.
- Setup fees average $227.71 among companies from the California sample that disclose such fees.
*Chico, Fresno, Irvine, Los Angeles, Orange County, Palmdale, Redding, Riverside, Sacramento, San Diego, San Francisco, San Jose, San Luis Obispo, and Visalia.
Average Property Management Fees in Florida
Florida property management companies employ 22,340 workers statewide. Our sample of Florida property management companies includes 67 locations in six (6) metropolitan areas** statewide.
- Among surveyed property management companies from the Florida sample that disclose a management fee, the average rate is 9.04% of collected rent.
- Among the few companies from the Florida sample that advertise a flat fee for management services, the average monthly charge is $107.53.
- 88.9% is the average fee for tenant placement only among Florida property management companies that charge a percentage of unit rent.
- Companies from the Florida sample that disclose the cost of tenant placement bundled with management services charge an average rate of 74.5% of collected rent.
- Among the few companies from the Florida sample that charge a flat rate for tenant placement with management, fees range from $99.00 to $1,750.
- Companies from the Florida sample that charge for lease renewal have fees that average a $270.57 flat rate or 33.3% of the unit’s first month’s rent.
- Among property management companies from the Florida sample that charge inspection fees, the average cost is $120.50 each.
- Setup fees average $148.86 among companies from the Florida sample that disclose such fees.
**Jacksonville, Melbourne, Miami, Naples, Orlando, and Tampa.
Average Property Management Fees in Georgia
Georgia property management companies employ 7,630 workers statewide. Our sample of Georgia property management companies includes 27 locations across two (2) MSAs: Atlanta and Athens.
- Among surveyed property management companies from the Georgia sample that disclose a management fee, the average rate is 8.03% of collected rent.
- 25.9% of the Georgia sample offer a flat fee at a monthly average of $101.14.
- 93.1% is the average fee for tenant placement only among Georgia property management companies that charge a percentage of unit rent.
- Companies from the Georgia sample that disclose the cost of tenant placement bundled with management services charge an average rate of 86.5% of collected rent.
- Most property management companies from the Georgia sample offer lease renewal; 22.2% charge a flat rate that ranges from $45.00 to $500.00.
- Among the 33.3% of the Georgia sample that charge a percentage of the unit’s first month’s rent, the average rate is 51.4%.
- Among property management companies from the Georgia sample that charge inspection fees, the average cost is $130.00 each.
- Setup fees average $129.80 among companies from the Georgia sample that disclose such fees.
Average Property Management Fees in Idaho
Idaho property management companies employ 1,450 workers statewide. Our sample of Idaho property management companies includes 18 locations across two (2) MSAs: Boise and Coeur d’Alene.
- Among surveyed property management companies from the Idaho sample that disclose a management fee, the average rate is 7.71% of collected rent.
- Among the few companies from the Idaho sample that charge a fee for tenant placement only, the average rate is 66.7% of the unit’s first month’s rent.
- Two (2) companies from the Idaho sample disclose fees for tenant placement bundled with management services, charging 25.0% and 50.0%, respectively.
- One (1) property management company from the Idaho sample discloses a $150.00 charge for tenant placement with management.
- Among the few property management companies from the Idaho sample that offer lease renewal for a flat fee, the average charge is $75.00.
- Two (2) companies from the Idaho sample charge based on a percentage of one month’s rent at 15.0% and 50.0%, respectively.
- Among the few property management companies from the Idaho sample that charge inspection fees, the average cost is $83.33 each.
- Setup fees average $296.33 among the few companies from the Idaho sample that disclose such fees.
Average Property Management Fees in Michigan
Michigan property management companies employ 5,210 workers statewide. Our sample of Michigan property management companies includes 21 locations across three (3) MSAs: Detroit, Grand Rapids, and South Haven.
- Among surveyed property management companies from the Michigan sample that disclose a management fee, the average rate is 8.92% of collected rent.
- Two (2) companies from the Michigan sample advertise management services for flat fees of $99.00 and $100.00, respectively.
- 74.1% is the average fee for tenant placement only among Michigan property management companies that charge a percentage of unit rent.
- Companies from the Michigan sample that disclose the cost of tenant placement bundled with management services charge an average rate of 70.3% of collected rent.
- Property management companies from the Michigan sample that advertise lease renewal fees charge an average flat rate of $217.86.
- One (1) company from the Michigan sample advertises a lease renewal fee based on a percentage of unit rent, charging 20.0% of the first month’s collected rent.
- Among property management companies from the Michigan sample that charge inspection fees, the average cost is $92.80 each.
- Setup fees average $200.00 among the few companies from the Michigan sample that disclose such fees.
Average Property Management Fees in Nevada
Nevada property management companies employ 2,930 workers statewide. Our sample of Nevada property management companies includes 21 locations across the two (2) MSAs: Las Vegas and Reno.
- Among surveyed property management companies from the Nevada sample that disclose a management fee, the average rate is 8.57% of collected rent.
- Among the few that charge a flat fee, the average monthly rate is $85.67.
- 77.1% is the average fee for tenant placement only among Nevada property management companies that charge a percentage of unit rent.
- Companies from the Nevada sample that disclose the cost of tenant placement bundled with management services charge an average rate of 64.6% of collected rent.
- Among the few companies from the Nevada sample that charge a flat rate for tenant placement only, the average fee is $409.00.
- Among property management companies from the Nevada sample that charge lease renewal fees, the average cost is $200.58 each.
- Setup fees average $189.80 among companies from the Nevada sample that disclose such fees.
Average Property Management Fees in New Mexico
New Mexico property management companies employ 960 workers statewide. Our sample of New Mexico property management companies includes 14 locations across two (2) MSAs: Albuquerque and Santa Fe.
- Among surveyed property management companies from the New Mexico sample that disclose a management fee, the average rate is 9.79% of collected rent.
- One (1) company from the New Mexico sample advertises management services for a flat fee, charging $49.00 per month.
- 54.17% is the average fee for tenant placement only among New Mexico property management companies that charge a percentage of unit rent.
- Among the few companies from the New Mexico sample that disclose the cost of tenant placement bundled with management services, the average rate is 60.00% of one month’s rent.
- Among the few property management companies from the New Mexico sample that advertise lease renewal fees, the average flat rate is $62.33.
- Two (2) property management companies from the New Mexico sample advertise inspection fees, charging $50.00 and $130.00, respectively.
- One (1) company from the New Mexico sample advertises a setup fee, charging $250.00.
Average Property Management Fees in North Carolina
North Carolina property management companies employ 5,700 workers statewide. Our sample of North Carolina property management companies includes 32 locations across five (5) MSAs.
- Among surveyed property management companies from the North Carolina sample that disclose a management fee, the average rate is 8.89% of collected rent.
- 69.6% is the average fee for tenant placement only among North Carolina property management companies that charge a percentage of unit rent.
- Companies from the North Carolina sample that disclose the cost of tenant placement bundled with management services charge an average rate of 54.5% of collected rent.
- Companies from the North Carolina sample that advertise a fee for lease renewal charge an average of $153.00 each.
- Among property management companies from the North Carolina sample that charge inspection fees, the average cost is $112.00 each.
- Among the few property management companies that advertise setup services, the average fee is $293.00 each.
Average Property Management Fees in Oregon
Oregon property management companies employ 3,200 workers statewide. Our sample of Oregon property management companies includes 12 locations across two (2) MSAs: Corvallis and Portland.
- Among surveyed property management companies from the Oregon sample that disclose a management fee, the average rate is 8.43% of collected rent.
- Two (2) companies from the Oregon sample advertise management services for a flat fee, charging $50.00 and $99.00, respectively.
- 62.5% is the average fee for tenant placement only among Oregon property management companies that charge a percentage of unit rent.
- Two (2) companies from the Oregon sample advertise the cost of tenant placement only ($300.00 and $580.00) and tenant placement with management services ($300.00 and $1,160.00).
- Property management companies from the Oregon sample that advertise lease renewal fees charge an average flat rate of $158.00.
- Two (2) property management companies from the Oregon sample advertise inspection fees, charging $75.00 and $150.00, respectively.
- One (1) company from the Oregon sample advertises setup fees, charging $150.00 each.
Average Property Management Fees in South Carolina
South Carolina property management companies employ 1,650 workers statewide. Our sample of South Carolina property management companies includes 17 locations across three (3) MSAs: Columbia, Greenville, and Spartanburg.
- Among surveyed property management companies from the South Carolina sample that disclose a management fee, the average rate is 9.08% of collected rent.
- Companies from the South Carolina sample that advertise management services for a flat fee charge a monthly average of $88.60.
- 86.9% is the average fee for tenant placement only among South Carolina property management companies that charge a percentage of unit rent.
- Companies from the South Carolina sample that disclose the cost of tenant placement bundled with management services charge an average rate of 67.7% of collected rent.
- Property management companies from the South Carolina sample that advertise a flat fee for lease renewal charge an average monthly rate of $231.80.
- One (1) property management company from the South Carolina sample advertises a lease renewal fee based on a percentage of the unit’s rent, charging a rate of 10.0%.
- Among the few property management companies from the South Carolina sample that advertise inspection fees, the average cost is $76.33 each.
Average Property Management Fees in Tennessee
Tennessee property management companies employ 3,840 workers statewide. Our sample of Tennessee property management companies includes 13 locations across two (2) MSAs: Chattanooga and Memphis.
- Among surveyed property management companies from the Tennessee sample that disclose a management fee, the average rate is 8.86% of collected rent.
- One (1) company from the Tennessee sample advertises management services for a flat fee, charging $83.00 per month.
- 75.0% is the average fee for tenant placement only among Tennessee property management companies that charge a percentage of unit rent.
- Companies from the Tennessee sample that disclose the cost of tenant placement bundled with management services charge an average rate of 65.9% of collected rent.
- Property management companies from the Tennessee sample that advertise lease renewal fees charge an average flat rate of $189.29.
- Among the few property management companies from the Tennessee sample that charge inspection fees, charges range from $75.00 to $198.00 each.
- Advertised setup fees range from $150.00 and $495.00 among the few companies from the Tennessee sample that disclose such fees.
Average Property Management Fees in Texas
Texas property management companies employ 22,820 workers statewide. Our sample of Texas property management companies includes 81 locations across seven (7) MSAs† statewide.
- Among surveyed property management companies from the Texas sample that disclose a management fee, the average rate is 8.87% of collected rent or a flat fee of $100.80.
- 83.9% is the average fee for tenant placement only among Texas property management companies that charge a percentage of unit rent.
- Companies from the Texas sample that disclose the cost of tenant placement bundled with management services charge an average rate of 76.6% of collected rent.
- Among the few companies that charge a flat fee for tenant placement only, average fees range from $600.00 to $999.00.
- Companies from the Texas sample that charge a flat rate for lease renewal bill $246.93 for each renewal.
- Among those that charge a percentage of the unit’s first month’s rent for lease renewal, the average rate is 21.4%.
- Among property management companies from the Texas sample that charge inspection fees, the average cost is $117.25 each.
- Setup fees range from $99.00 to $350.00 among companies from the Texas sample that disclose such fees.
†Austin, Dallas, Fort Worth, Houston, Killeen, San Antonio, and Tyler.
Average Property Management Fees in Utah
Utah property management companies employ 2,640 workers statewide. Our sample of Utah property management companies includes 25 locations across two (2) MSAs: Salt Lake City and St. George.
- Among surveyed property management companies from the Utah sample that disclose a management fee, the average rate is 8.55% of collected rent.
- Among the few companies in the Utah sample that advertise tenant placement only, the average fee is 82.1% of the unit’s first month’s rent.
- Companies from the Utah sample that disclose the cost of tenant placement bundled with management services charge an average rate of 39.8% of collected rent.
- Among companies from the Utah sample that charge a flat rate for lease renewal, the average fee is $177.14.
- Among property management companies from the Utah sample that charge inspection fees, the average cost is $78.67 each.
- Among the few that advertise setup service charges, fees start at $45.00 and average $153.75.
Average Property Management Fees in Washington
Washington property management companies employ 2,400 workers statewide. Our sample of Washington property management companies includes 20 locations across three (3) MSAs: Seattle, Spokane, and Vancouver.
- Among surveyed property management companies from the Washington sample that disclose a management fee, the average rate is 9.40% of collected rent.
- Among the few that charge a flat fee start at $99.00 and average $155.75.
- 80.7% is the average fee for tenant placement only among Washington property management companies that charge a percentage of unit rent.
- Companies from the Washington sample that disclose the cost of tenant placement bundled with management services charge an average rate of 70.4% of collected rent.
- Among the few that advertise lease renewal services, the average fee is $199.50 or 33.3% of the unit’s first month’s rent.
Average Property Management Fees in Wisconsin
Wisconsin property management companies employ 1,300 workers statewide. Our sample of Wisconsin property management companies includes 10 locations across two (2) MSAs: Madison and Milwaukee.
- Among surveyed property management companies from the Wisconsin sample that disclose a management fee, the average rate is 7.10% of collected rent.
- The few companies from the Wisconsin sample that offer management services for a flat fee charge a monthly average of $104.33.
- 75.0% is the average fee for tenant placement only among Wisconsin property management companies that charge a percentage of unit rent.
- Two (2) companies from the Wisconsin sample advertise the cost of tenant placement bundled with management services as a percentage of one month’s rent, charging rates of 60.0% and 100.0%, respectively.
- One (1) property management company from the Wisconsin sample advertises a flat rate for tenant placement only, charging $500.00.
- Two (2) property management companies from the Wisconsin sample advertise lease renewal fees charge flat rates of $199.00 and $250.00, respectively.
- One (1) property management company from the Wisconsin sample advertises inspection fees at a cost of $99.00 each.
- Two (2) property management companies from the Wisconsin sample advertise setup fees of $99.00 each.
About Our Sample
Our nationwide sample includes property management companies from 31 states, representing 20.6% of urban markets. The sample includes 722 branches from 669 corporations. While over 300,000 corporate entities are registered as property management companies nationwide, many of these are inactive, represent independent sole proprietorships, or are part of multi-establishment companies.
The most consistently available data point among surveyed property management companies is the management service fee charged as a portion of unit rent; 75.3% of companies use this method to charge for management services. The average fee is 8.49%, which falls within the estimated nationwide average range of 6.00% to 10.0%.
HUD Standards
For reference. Each field office with the U.S. Department of Housing and Urban Development (HUD) issues appropriate management fees. Management fees are for the year 2021 and represented as per unit month (PUM). When expressed as a percentage of the 2-bedroom (2BR) fair market rent (FMR), management fees are divided by the metropolitan statistical area’s 2BR FMR for 2021.
| Field Office | Property Management Fee PUM | Fee as a Percentage of 2BR FMR |
|---|---|---|
| Birmingham, AL | $56.10 | 5.60% |
| Anchorage, AK | $71.44 | 5.86% |
| Phoenix, AZ | $56.81 | 4.54% |
| Los Angeles, CA | $93.58 | 4.55% |
| Sacramento, CA | $70.52 | 4.72% |
| San Diego, CA | $75.81 | 3.57% |
| San Francisco, CA | $79.87 | 2.25% |
| Denver, CO | $59.12 | 3.68% |
| Hartford, CT | $87.47 | 6.49% |
| Washington, D.C. | $66.28 | 5.94% |
| Jacksonville, FL | $61.63 | 5.54% |
| Miami, FL | $72.81 | 4.69% |
| Tampa, FL | $69.14 | 5.44% |
| Atlanta, GA | $59.55 | 5.03% |
| Honolulu, HI | $69.02 | 3.33% |
| Chicago, IL | $76.86 | 5.92% |
| Indianapolis, IN | $64.25 | 6.79% |
| Des Moines, IA | $54.28 | 6.02% |
| Louisville, KY | $63.57 | 6.92% |
| New Orleans, LA | $55.56 | 5.24% |
| Shreveport, LA | $55.33 | 6.55% |
| Baltimore, MD | $65.67 | 4.74% |
| Boston, MA | $92.19 | 3.95% |
| Detroit, MI | $53.30 | 5.08% |
| Grand Rapids, MI | $53.75 | 5.41% |
| Minneapolis, MN | $70.16 | 5.36% |
| Jackson, MS | $66.78 | 7.17% |
| St. Louis, MO | $50.62 | 5.40% |
| Kansas City, MO | $51.67 | 5.06% |
| Omaha, NE | $53.41 | 5.41% |
| Las Vegas, NV | $66.21 | 5.79% |
| Manchester, NH | $71.39 | 5.43% |
| Newark, NJ | $74.31 | 4.52% |
| Albuquerque, NM | $53.63 | 5.71% |
| Buffalo, NY | $63.85 | 6.94% |
| New York, NY | $84.61 | 4.12% |
| Greensboro, NC | $60.70 | 7.07% |
| Cincinnati, OH | $54.97 | 6.00% |
| Cleveland, OH | $56.42 | 6.52% |
| Columbus, OH | $59.50 | 5.77% |
| Oklahoma City, OK | $55.21 | 6.01% |
| Tulsa, OK | $48.59 | 5.42% |
| Portland, OR | $62.20 | 4.05% |
| Philadelphia, PA | $58.52 | 4.64% |
| Pittsburgh, PA | $68.09 | 7.24% |
| Providence, RI | $76.55 | 6.67% |
| Charleston, SC | $55.53 | 4.60% |
| Columbia, SC | $61.94 | 6.43% |
| Knoxville, TN | $52.38 | 5.85% |
| Little Rock, AR | $60.61 | 6.70% |
| Nashville, TN | $59.89 | 5.00% |
| Fort Worth, TX | $52.43 | 4.22% |
| Houston, TX | $52.54 | 4.54% |
| San Antonio, TX | $57.01 | 5.12% |
| Richmond, VA | $76.89 | 6.61% |
| Seattle, WA | $61.11 | 3.21% |
| Milwaukee, WI | $57.91 | 5.95% |