How Much Does a Property Manager Cost?
Fees & Pricing Explained
If you're considering hiring a property manager, one of the first questions you'll ask is, "How much do property managers charge?" Property management fees vary based on location, services offered, and the type of property being managed. Understanding these costs can help you decide whether hiring a property manager is the right choice for you.
How Much Do Property Managers Charge on Average?
On average, property management companies charge between 8% to 12% of the monthly rental income for full-service management. This means that if your rental property generates $1,500 per month, you can expect to pay between $120 and $180 per month in management fees.
In addition to monthly fees, many property managers charge other costs such as:
Leasing Fees: 50% to 100% of one month’s rent for finding and placing a tenant.
Setup Fees: A one-time charge, usually around $300, for setting up your property in their system.
Maintenance Fees: Varies based on repairs and contractor agreements.
Eviction Fees: Costs for handling evictions, including legal paperwork and court filings.
What Do Property Managers Do?
A property manager handles the daily operations of rental properties, ensuring they are well-maintained and occupied by reliable tenants. Their responsibilities typically include:
Marketing rental properties and finding tenants
Conducting tenant screenings (credit checks, references, income verification)
Preparing lease agreements and collecting rent
Handling maintenance and emergency repairs
Enforcing lease terms and managing evictions if necessary
Providing financial reports and ensuring legal compliance
What Is Property Management and Why Is It Important?
Property management involves overseeing rental properties to ensure they operate smoothly and generate consistent income. What property management companies do is more than just collecting rent—they take care of tenant relations, property upkeep, and financial reporting, making ownership more passive and stress-free for landlords.
“Property management is more than just collecting rent—it’s about maximizing occupancy, handling tenant relations, maintaining properties, and ensuring legal compliance. A great property manager makes rental ownership truly passive for landlords.”
Comparing Property Management Pricing: Industry Standards vs. Babcock & Robinson Inc.
At Babcock and Robinson Inc., our pricing structure is designed to offer high-quality property management at a competitive rate. If you're wondering, "How much does a property manager cost compared to self-managing?" our breakdown below will help you weigh your options.
Full Management Services
Industry Average: 8% - 12% of monthly rent
Babcock & Robinson Inc.: 9.5% of rent collected (We only get paid when you do!)
Our full management service includes everything from tenant screening and lease preparation to rent collection and 24/7 emergency support. Unlike many competitors, we also provide yearly financial reports and discounted tenant placement fees for returning clients.
Tenant Placement Fees
Industry Average: 50% - 100% of one month’s rent
Babcock & Robinson Inc.: One month’s rent for initial placement
Discounted to half a month’s rent for future placements if we continue managing your property.
We also offer a one-year tenant guarantee—if a tenant we place needs to be replaced within the first year, we will do so at no additional cost.
What Property Management Companies Do: Flexible Service Options
Not all property owners require full management services. Many companies, including ours, offer flexible options for landlords who want more control over their rentals.
Tenant Screening Services
Cost: $650 + HST (One-time fee)
The property owner handles advertising and showings.
We conduct tenant screening, including:
Credit and background checks
Income verification
Rental reference checks
Lease preparation
Self-Management Assistance
Cost: Equivalent to the last month’s rent
We advertise and show the property.
We conduct tenant screenings and provide a lease agreement.
The property owner takes over day-to-day management.
Full Management Option
Cost: 9.5% of the monthly rent (Only paid when rent is collected)
Includes all services in Tenant Screening and Self-Management Assistance, plus:
24/7 emergency response for tenant issues
Handling all maintenance and repairs with trusted contractors
Rent collection and direct deposit to the landlord
Annual smoke detector and carbon monoxide detector inspections
Eviction management, including legal paperwork and court attendance
Monthly and yearly financial statements for tax reporting
“At Babcock & Robinson Inc., we believe in fair, transparent pricing. Unlike many competitors, we only charge 9.5% of rent collected, meaning we don’t get paid unless you do.”
Is the Cost of a Property Manager Worth It?
Deciding whether to hire a property manager depends on your time, expertise, and the number of properties you own. If you prefer a hands-off approach with professional oversight, full management services can save you time and reduce stress. For landlords who enjoy handling day-to-day operations, tenant screening or self-management assistance may be better options.
Babcock and Robinson Inc. provides flexible solutions to meet different needs, offering cost-effective and high-quality property management services. Whether you need full management or just tenant placement, we help you find the best solution for your rental property.
“Hiring a property manager can be a game-changer for landlords who value peace of mind, passive income, and professional tenant management. If you prefer a hands-off approach, full-service property management may be the best investment you make.”
Get Started Today!
Ready to take the stress out of managing your rental property? Fill out our management application now to get started with Babcock & Robinson Inc. Whether you need full management or just tenant placement, we’ll help you find the perfect solution tailored to your needs. Click below to fill out your management form and let us handle the rest!