What is the typical structure of a property management fee?

Property management fees vary by market and property type. Common structures: (1) Percentage of rent collected — typically 8-12% for single-family residential, 5-10% for multi-family, 3-6% for commercial. The 'collected' specification matters: if a tenant doesn't pay, manager doesn't earn (creates incentive to collect aggressively); (2) Flat monthly fee — sometimes used for vacation rentals or short-term management; (3) Leasing fee — separate fee for finding new tenants, typically equal to one month's rent or 50-100% of one month's rent; (4) Lease renewal fee — smaller fee when existing tenant renews (often $200-500); (5) Vacancy fee — some agreements continue charging a reduced fee during vacancies, others stop entirely; (6) Setup fee — one-time fee to onboard a new property; (7) Mark-up on maintenance — some managers add 10-20% to outside vendor costs; (8) Other fees — annual reports, tax preparation coordination, eviction handling, etc. Management agreement must clearly specify all fees. Property owners should compare total fee structures, not just headline percentages — a 8% manager with high additional fees may cost more than a 10% manager with no extras. Negotiation room exists for larger portfolios or longer-term agreements.