How Much Does Property Management Cost?

And Why the Answer is Always “It Depends”

If you’re a rental property owner asking, “How much does property management cost?”, the short answer is:

It depends.

That might sound like a frustrating non-answer, but hang with me. The truth is that not all property managers charge the same, and more importantly, not all fees are created equal.

In this article, I’ll break down the most common property management fees—monthly management, leasing, renewals, maintenance, and more—based on what full-service property management companies typically charge in the Midwest. By the end, you’ll be better equipped to compare companies and understand what you’re really paying for.

Why Property Management Pricing Varies

Different property management companies structure their fees in different ways.

• Some charge a flat monthly rate.

• Others charge a percentage of rent collected.

• Some “bundle” services together.

• Others charge for each item à la carte.

That’s why looking at just the management fee percentage is a mistake. What really matters is your total cost of ownership—including leasing fees, maintenance markups, and hidden charges that can add up fast.

1. Monthly Management Fees (And What to Watch Out For)

This is the base fee you pay a manager to oversee your property on a monthly basis.

In the Midwest, most full-service managers charge 8% to 10% of collected rent.
Some companies use a flat fee model—like $99/month per single-family home. Others have a hybrid: 8% of rent with a $100/month minimum.

💡 But here’s something important…

Some companies still charge this monthly management fee even when your unit is vacant. That means you could be paying them—even when you’re not making any money.

They’ll usually justify it by saying they’re doing work: coordinating cleaning, scheduling showings, doing inspections, etc.

And if that’s true, a small fee might make sense.

But here’s the issue:

Those activities are part of the leasing and turnover process—not ongoing management.

So they should be covered by the leasing fee, not tacked onto your monthly bill while the unit is vacant.

If a company charges a full management fee and a leasing fee during the same vacancy period, you’re paying twice for the same service.

At VP Property Management, we only charge our monthly fee on collected rent. If you're not getting paid, neither are we. Simple as that.

2. Leasing Fees (Tenant Placement)

Leasing fees cover the cost of finding and placing a new tenant—things like marketing, showings, applications, screening, lease prep, and move-in coordination.

Most Midwest property managers charge one full month’s rent as a leasing fee.
Some offer reduced rates (e.g., 75%) or charge a flat fee like $400.

Here’s the hidden truth…

Every time there’s tenant turnover, the management company gets paid again.

So if they provide poor service to the tenant—slow response times, maintenance issues, lack of communication—they still win. The tenant leaves, and they get another leasing fee.

You, on the other hand, are stuck paying for:

• A rent-ready turn

• Potential vacancy loss

• Another leasing fee

That’s why retaining good tenants is one of the best ways to protect your cash flow—and something good property managers focus heavily on.

3. Lease Renewal Fees

If your tenant decides to stay another year, some managers charge a lease renewal fee for handling the paperwork, negotiation, and documentation.

• Typical range: $150–$250

• Some charge 25% of one month’s rent

• Others waive the fee entirely

At VP, we charge a small, flat renewal fee to cover the admin work. But we also see it as an opportunity to re-engage the tenant and strengthen the relationship—because a lease renewal is way cheaper than tenant turnover.

4. Onboarding / Setup Fees

Some managers charge a one-time onboarding fee when you sign up. This might cover:

• Initial paperwork

• Account setup

• Move-in inspections

• Tenant transition if currently occupied

Typical setup fees range from $100 to $300, and some companies waive this fee altogether as a new-client incentive.

Just make sure you know what’s included—and what’s not.

5. Maintenance Fees and Markups

Maintenance is one of the most misunderstood parts of property management—and one of the most abused by low-cost managers.

Here’s how it typically works:

There are two ways maintenance gets handled:

1. In-house techs – billed hourly (usually $75–$90/hr)

2. Third-party vendors – billed at cost + a 10–12% coordination fee

That coordination fee covers scheduling, oversight, invoice processing, and making sure the work gets done right.

At VP, we only use vetted vendors and charge a flat 10% coordination fee. No upcharging. No shady markups.

We also keep a maintenance reserve on file so we can handle minor repairs without delay. For larger jobs, you’ll always approve them first.

✅ Tip: Always ask if your manager marks up invoices or gets kickbacks from vendors.

6. Other Common Fees to Ask About

Here are a few other charges you might see in a management agreement:

Make sure you ask for a complete fee schedule—not just the headline rate. It’s the hidden fees that make the biggest difference.

What You Should Be Asking Instead

Instead of asking, “What’s your management fee?”, ask this:

• What’s your total cost during a vacancy?

• Do you charge maintenance markups?

• What do you do to retain tenants?

• How do you handle emergencies or after-hours calls?

Because a manager with a 7% rate and bad policies could cost you way more than one charging 10% who’s focused on maximizing retention and preventing costly mistakes.

Our Approach at VP Property Management

We offer full-service management for single-family and small multifamily rentals in Kansas City and surrounding areas. We’re not the cheapest—and we’re not trying to be.

But we are transparent, accountable, and aligned with your goals as a property owner.

We only charge management fees on collected rent,
We don’t mark up maintenance invoices,
And we focus relentlessly on long-term tenant retention.

Want to See What It Would Cost for Your Property?

We offer a free rental analysis that breaks down expected rent, expenses, and ROI potential—so you can make a smart decision with real numbers.

👉 Call 816-378-0007 or visit kcvppropertymanagement.com to get started.

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