Key Takeaways:
- Understanding What’s Included Helps You Budget Smarter: Some companies bundle services, while others charge separately, making it important to read the fine print.
- Transparent Pricing Builds Confidence and Trust: When pricing is clearly explained, it’s easier to feel confident about your decision and stay in control of your investment.
Landlords often ask how much it costs to hire a property management company when they consider outsourcing the daily responsibilities of managing a rental. No matter how many properties you own, understanding the full cost of professional management is key to making an informed decision.
The truth is that property management fees vary widely, and some landlords are caught off guard by unexpected charges. It’s not just about the monthly fee; other costs can add up quickly if you're not aware of them. Knowing what to expect upfront helps you compare companies fairly and budget accurately.
To help you make sense of the numbers, Key Home Sales & Management put together this detailed guide on how much Northern Virginia property management costs and what you can expect in terms of services and value.
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What Are the Typical Property Management Fees?
There are several types of fees that landlords may encounter when working with a property management company. Below is a breakdown of the most common ones:
1. Setup Fee
Some companies charge a one-time setup or onboarding fee, typically ranging from $100 to $300. This covers administrative tasks such as opening your account, inspecting the property, and entering it into the company’s system.
This fee helps the management company prepare your property and ensure all documentation is in place before services begin.
2. Monthly Management Fee
This is the core fee most landlords will pay. It usually ranges from 8% to 12% of the monthly rent collected, though some companies offer a flat monthly rate, especially for single-family homes. This fee typically covers basic services like rent collection, tenant communication, coordinating maintenance, and handling day-to-day property issues.
It is the most consistent ongoing cost and reflects the level of involvement your manager has in running the property.
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3. Leasing or Tenant Placement Fee
When a new renter needs to be found, property managers often charge a leasing fee. This fee usually ranges from half a month to one full month’s rent. It generally covers marketing the rental, showing the property, screening applicants, and preparing the lease agreement.
This fee is only incurred when a new lease is signed, and it compensates the manager for finding a qualified tenant.
4. Lease Renewal Fee
When an existing tenant chooses to renew their lease, a renewal fee may be charged. This typically ranges from $100 to $300, or a small percentage of monthly rent. The fee compensates the property manager for reviewing the lease terms, making any necessary updates, and securing signatures.
It ensures the lease agreement remains legally up to date and continues to protect both landlord and tenant.
5. Maintenance Markups
Property managers often oversee repairs and maintenance. Some charge a markup fee of 10% to 20% on top of the vendor’s invoice to cover their time managing these services. While this is a common industry practice, not all companies include it in their agreement.
This fee accounts for the coordination effort and follow-up involved in managing vendors and ensuring timely repairs.
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6. Vacancy Fee
When a property is unoccupied, some management companies charge a vacancy fee. This may be a small monthly amount or a flat fee to inspect the property regularly and ensure it remains in good condition. However, many modern companies no longer charge this fee, so it is becoming less common.
The fee helps ensure the property stays maintained and secure while waiting for a new tenant.
7. Eviction Fee
If eviction becomes necessary, the management company usually handles the process on behalf of the landlord. Eviction fees typically range from $200 to $500, depending on the complexity. Note that this fee usually does not include court costs or filing fees, which are billed separately.
This covers the manager’s time to file notices, attend court if needed, and follow local legal procedures.
8. Additional Fees
Some companies may charge for specific services such as detailed accounting reports, property inspections, or access to online owner portals. Others may include these features in their standard management package. Review the full list of services in the management agreement to understand what is included and what may incur extra charges.
These fees vary by company, so it’s important to clarify which services are included and which cost extra.
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Bottom Line
Hiring a property management company can offer great value, but it’s essential to understand the full cost. The most common fee is the monthly management charge, which is usually a percentage of the rent collected. In addition, landlords may pay for tenant placement, lease renewals, maintenance coordination, and other services. Not all companies charge the same way, so it’s important to ask for a clear fee schedule and review the terms carefully.
Key Home Sales & Management helps landlords take the guesswork out of property management. Our transparent pricing, experienced team, and full-service support mean you know exactly what you're paying for. From finding reliable tenants to handling day-to-day operations, we offer peace of mind and real value.
If you're ready to explore professional property management, contact Key Home Sales & Management today for a free consultation. Let us show you how we can protect your investment and make your rental business easier and more profitable.
