Property management fee
A property management fee is the compensation an owner pays a property manager to operate a rental. It is most often charged as a percentage of the rent collected each period, though flat fees and tiered structures also exist.
How it is calculated
- Percentage of collected rent (commonly in the range of 6 to 12 percent), so the fee scales with what is actually collected.
- Flat monthly fee per unit, independent of rent collected.
- Tiered or per-property rates that can be overridden at the lease, owner, or company level.
In a connected system the fee is applied automatically as rent is collected, rather than calculated by hand at month-end. In AXYS the management fee comes from a single cascade (lease, then property rule, then owner, then company default), so the right rate applies without manual edits.
Is a management fee taken before or after expenses?
It depends on the agreement. Many managers take the fee off collected rent first, then apply withholding and expenses, before distributing the remainder to the owner.
What is a typical property management fee?
Percentage fees commonly fall in the 6 to 12 percent range of collected rent, but the right number depends on the market, services included, and portfolio.
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