Before you hire a property manager, you need to assess your finances. Property managers are not free. Managers will charge a fee, on average, between 4% and 10% of the monthly gross income for the property. The typical fee for a single family rental property is closer to 10%. The fee for a property of 10 units or more is typically between 4% and 7%.
For example: A single family home with a gross income of $1,000 a month might have a management fee of 10%, or $100, while a 5% fee would only be $50. In this scenario, paying the property manager $50 a month for managing a property would not be a great enough incentive to attract a quality professional. However, for larger properties, assuming the monthly income is $20,000, a 5% management fee would be $1,000, and should be enough to attract a seasoned professional.
Some property managers will also charge tenant placement fees, which is a bonus for finding a tenant. These fees will vary from a few hundred dollars to as much as one month’s rent.