Property Management Fees – What to Expect

Key Takeaways

1. Property Managers Offer Full-Service Support – From pricing and marketing to rent collection and maintenance, property managers handle day-to-day operations so you don’t have to.
2. Fees Vary by Service and Property Type – Expect to pay a setup fee, leasing and renewal fees, plus monthly management charges—typically between 7%–10% of monthly rent.
3. You May Pay Extra for Evictions or Legal Support – Some services, like handling evictions, can cost $500–$1,000, not including legal expenses.
4. Hiring a Property Manager Is an Investment – While not free, a great property manager can maximize your rental income, reduce vacancy, and save you time and stress.

Hiring a property manager is a decision that shouldn’t be taken lightly. The right property manager can help you maximize your rental income, maintain your property’s value, and enhance tenant satisfaction. 

Hiring a professional allows you to save time, reduce stress, and ensure your property is managed efficiently. However, it comes at a cost.

To many investors, hiring a property manager is an additional expense. But seasoned landlords know that it can be a smart investment. 

Property managers handle everything from tenant screening and rent collection to maintenance coordination and legal compliance, ultimately helping you protect your investment and enjoy a more passive, hands-off rental experience.

In this guide, the experts at Keyrenter Arkansas will go over everything you should know before partnering with a property manager, including how much you should expect to pay for their service. Ready? Let’s dive in!

What Is Included in Property Management Services?

Before hiring a property manager, you must understand what you’d be paying for. Here are some of the main things a property manager can do for you:

Pricing Your Property

A good property manager will do a rental analysis of your property to determine whether its price is competitive. If it’s not, they’ll help you set an appropriate price for the current market conditions.

Marketing Your Property

They can help you create an attractive listing of your rental, as well as run both traditional and digital marketing campaigns to attract a wide pool of tenants more quickly.

Screening Tenants

Once you start getting applications for your rental, the property manager will review them. By conducting thorough interviews, background and credit checks, and calling references, they’ll be able to help you find the right tenants.

Leasing Your Property

Experienced property managers know how to draft a strong lease agreement. Additionally, they can help coordinate tenants’ move-ins to streamline the leasing process.

Collecting Rent

Property managers send timely reminders to ensure tenants pay on time every month. Additionally, they enforce late fees and work with tenants to avoid late payments and resolve any payment issues promptly.

Coordinate Move-Outs

A property manager can conduct walkthroughs, return tenants’ security deposits, and coordinate maintenance. This streamlines the process between tenants, minimizing vacancies.

Enhancing Tenant Satisfaction

Property managers are the point of contact between landlords and renters. Their support and transparency can go a long way in improving the landlord-tenant relationship.

Coordinating Maintenance

Property management companies work with a trusted team of contractors to ensure your property is in good condition year-round. They also have the tools and resources to answer emergency requests at any time.

Financial Tracking

Most property managers offer bookkeeping and accounting services. They can help you track all your income and expenses, as well as prepare for tax season, making it easier for you to track the performance of your investment.

Legal Guidance

While they’re not legal professionals, property managers are well-versed in the local rental laws. They can help with anything from ensuring compliance with local ordinances to representing you during the eviction process. 

If you need help with multiple of these tasks, you should seriously consider hiring a property manager. The same goes for if you’d like to get some time back in your day and not have to be on call 24/7.

A Breakdown of Property Management Costs

Property management fees can vary significantly depending on factors such as location and the number of units to be managed. However, it’s easy to estimate how much you’ll spend if you know all the costs involved. Typically, property managers charge the following fees:

Setup Fee

Some professionals charge a one-time initiation fee to onboard new landlords. Ranging from $200 to $500, this money is used to cover the administrative costs associated with managing a new unit.

Leasing Fees

Most companies charge a fee equivalent to one month’s rent for placing tenants on your property. But at Keyrenter Arkansas, we charge a flat fee ranging from $295 to $895, depending on the size and number of units you want us to rent out for you.

Monthly Management Fees

Property managers charge an ongoing fee for their services. Some companies can ask for a flat fee, but most usually take a cut of the unit’s monthly earnings. At Keyrenter Arkansas, we charge 7% of one month’s rent for single-family homes and 8% of the total monthly earnings for multi-family properties. 

Renewal Fees

Same as with leasing fees, some property managers may charge an additional fee for dealing with the paperwork of renewing a tenant’s lease. 

Since renewals don’t require additional marketing, this fee tends to be much less than the leasing fee, usually around $100 to $400, or a small percentage of the monthly rent.

Eviction Fees

Evicting tenants is a complicated and time-consuming process. That’s why some property managers charge their clients additional fees for dealing with evictions. These fees can vary widely, going from $500 to $1000, not including attorney or court fees.

Bottom Line

A property manager can be an invaluable asset. They can help you streamline the operations of your rental, saving you time and enhancing tenant satisfaction. They can also help with tedious tasks like marketing your property and dealing with paperwork. But their services don’t come for free. 

Typically, property managers charge between 8% and 12% of the monthly rental income for ongoing management. 

This includes marketing, inspecting, and maintaining the property, as well as responding to tenants’ requests. Additional fees may also apply for leasing, maintenance coordination, and other services, depending on the company. 

At Keyrenter Arkansas, we know that you depend on your rental property to supplement your income. That’s why we offer fair and transparent pricing for our services. 

Our management fees range between 7 and 10% of the monthly rent generated, depending on the size and location of the property. Contact us today to learn how we can help you!