Advice on Structuring Fees as a New Property Manager

[Chris F.]

Hi everyone

I’m planning to start a property management company and would appreciate some advice on setting up my fee structure. I’m looking to understand industry standards and best practices. Here are some of the main questions I have:

1. Percentage of Income: What percentage of monthly rental income do property managers typically charge? Does it vary depending on property type and unit count (SFR vs Multifamily, vacation rentals vs. long-term rentals)?

2. Placement Fee: Do you recommend charging a full month’s rent for new tenant placements? If so, how has this worked for you in terms of value to the owners and as part of your overall fee structure?

3. Additional Fees: Are there other fees I should consider, such as maintenance coordination, lease renewal fees, or vacancy fees? Any insight into what’s commonly accepted would be great.

Thanks in advance for any tips or experiences you can share. I want to ensure I’m offering fair pricing for owners while building a sustainable business.