What a property manager costs in 2027 and what you get for it

This guide is for owners of rental homes in Canada and the US who are thinking about hiring a property manager. Most managers charge a monthly fee of about 6 to 12 percent of the rent they collect, plus a leasing fee each time they find a new tenant, often between half and a full month’s rent. In Canada, GST or HST is usually added on top. A few charge a flat monthly fee per unit instead.

Those headline numbers only tell part of the story, though. Two quotes with the same percentage can cost very different amounts by the end of the year, depending on what’s included and what’s charged extra. The easiest way to see that is to compare real quotes side by side.

Diane owns a two bedroom condo that rents for $2,400 a month. Her tenant is moving out, she’s tired of managing it herself, and she has three quotes in front of her.

The fees most property managers charge

Before comparing quotes, it helps to know the usual parts of a fee schedule.

Fee	What it’s for	What’s common
Monthly management fee	Collecting rent, handling repairs and residents, paying the owner	About 6 to 12 percent of rent collected, or a flat fee per unit
Leasing fee	Finding and placing a new tenant	Often 50 to 100 percent of one month’s rent
Lease renewal fee	Renewing an existing tenant’s lease	Often a flat fee of a few hundred dollars, sometimes none
Setup fee	Bringing a new home onto their books	Varies, and many don’t charge one
Maintenance markup	A percentage added to repair invoices	Often around 10 percent, where it’s charged
Vacancy fee	A charge while the home is empty	Less common, worth asking about
Eviction or tribunal fee	Handling a case at the landlord tribunal or in court	Usually extra, plus filing costs

In a large sample of US companies, iPropertyManagement found an average monthly fee of 8.49 percent, and a separate tenant placement charge averaging about 71 percent of a month’s rent. Canadian managers quote similar ranges. FirstService Residential puts monthly fees in BC at often between 6 and 10 percent. These figures come from company websites and surveys, not an official source, so treat them as a guide and compare the quotes you actually get.

Three quotes for the same condo

Here are Diane’s three quotes, worked through for her first year. The year includes finding one new tenant and about $3,000 of repairs.

	Manager A	Manager B	Manager C
Monthly fee	8% of rent	6% of rent	$150 flat
Leasing fee	One month’s rent	One month’s rent	One month’s rent
Repair markup	None	10%	None
Renewal fee	None	$250	None
Extras	Inspections included	Inspections included	$75 per repair call, $150 per inspection
First year	$4,704	$4,428	$4,200 plus extras

On paper, Manager C looks cheapest, with a flat $150 a month. But Diane’s condo is in an older building, and she expects around eight repair calls and two inspections a year. At $75 a call and $150 an inspection, that’s another $900, which brings Manager C to about $5,100, the most expensive of the three.

Manager B’s lower percentage is partly offset by the repair markup. Its $250 renewal fee doesn’t apply in the first year, since the tenant is new, and even in a year with a renewal it still comes in just under Manager A. Manager A is the simplest, with one percentage that covers almost everything and the leasing fee as the only other charge.

Taxes come on top in Canada. GST or HST is generally added to property management fees, so a quote that looks like 8 percent can cost more once tax is included. Check whether each quote includes it before comparing.

None of the three is wrong. The point is to compare what a normal year will cost for your home, including the extras you’ll actually use, rather than the monthly percentage alone.

What the monthly fee should cover

Once you know what a year will cost, look at what you get for it. A full-service manager’s monthly fee usually covers:

• Collecting rent and following up when it’s late
• Answering residents and handling repair requests, with trusted vendors
• Paying the bills for the property and paying you your share
• A clear monthly statement showing rent in, costs out and what you received
• Keeping you informed about anything that needs your decision
• Notices and paperwork under your province’s or state’s rental rules

Ask how each of these works as well as whether it’s included. For example, how quickly do they respond to a resident’s repair request, and how much can they spend on a repair without calling you? When do you get paid each month, and what does the statement look like? Ask to see a sample statement before you sign.

Questions to ask before you sign

1. Can I see your full fee schedule in writing, including every one-time and per-visit charge?
2. Are your fees before or after GST or HST? (in Canada)
3. Do you add a markup to repair invoices?
4. How much can you spend on a repair without asking me?
5. What does a monthly owner statement look like, and when am I paid?
6. What happens, and what does it cost, if a tenant stops paying?
7. How do I end the agreement if it isn’t working, and is there a fee?

Diane’s choice

Once she works through a full year, Diane picks Manager B. It costs the least for how her condo actually runs, and its answers to her questions were the clearest. The quote that looked cheapest at first would have cost her the most.

If you’re comparing managers for your own rental, we can help.

Tuze makes the software property managers use to run their business, from leasing and rent to AI teammates that answer renters and residents in minutes, at any hour. For your home, that means less time empty, and a vacancy filled a few weeks sooner can be worth more over a year than a point or two off the monthly fee.

Through Find a property manager, we’ll introduce you to a trusted manager near you who runs on Tuze.