What does a good property management company charge?

A good property management company typically charges fees based on the services provided. Here’s a breakdown of standard fees in Chicago and what to expect:

1. Monthly Management Fee

This is the most important fee, covering day-to-day management, rent collection, tenant communication, and maintenance coordination.

• Single-Family & Small Multi-Units (2-4 units): 8%-12% of monthly rent

• Larger Multi-Family Buildings (5+ units): 5%-8% of monthly rent

• Flat Fee Option: Some companies charge a fixed amount per unit, typically $100-$250 per month per unit

Example:

• If your property rents for $2,000/month, expect to pay $160-$240/month (at 8%-12%).

• For a 4-unit building renting at $1,500/unit, you might pay $480-$720/month in management fees.

2. Tenant Placement (Leasing) Fee

Covers advertising, tenant screening, lease signing, and initial move-in logistics.

• 50%-100% of one month’s rent

• Some charge a flat fee ($500-$1,500 per unit)

Example: If your rent is $2,000/month, a company might charge $1,000-$2,000 for placing a tenant.

3. Lease Renewal Fee

Charged when a tenant renews their lease (covers lease updates and negotiations).

• $100-$300 per lease

• Some charge 25%-50% of one month’s rent

Example: If rent is $1,800, a 25% renewal fee would be $450.

4. Maintenance Coordination Fee

Some companies charge an extra fee (5%-10%) on top of repair costs for coordinating maintenance and repairs.

• 5%-10% markup on vendor invoices

• $25-$100 per maintenance request (some charge per issue)

Example: A $500 plumbing repair could cost $550 if there’s a 10% markup.

5. Eviction Fee (If Needed)

Covers legal processing, court filing, and handling evictions.

• $500-$1,500 per eviction (not including court fees)

• Full-service legal eviction can cost $3,000+

6. Inspection Fees

Covers routine property inspections (move-in/move-out, periodic inspections).

• $75-$250 per inspection

• Some include 1-2 free inspections per year

7. Miscellaneous Fees (Some Companies Charge Extra For)

• Onboarding Fee: $250-$500 (one-time setup)

• Marketing Fee: $100-$300 for professional photos/listings

• Vacancy Fee: Some charge a flat fee during vacant months (typically $50-$200/month)

How to Get the Best Deal on Property Management Fees

• Negotiate lower rates if you have multiple properties

• Look for all-inclusive pricing (some companies bundle services for a flat rate)

• Ask about hidden fees (markups on maintenance, admin fees, or vacancy charges)

• Avoid long-term contracts without a trial period