Property Management Fees

Key Takeaways

• Expect a Monthly Management Fee of 7–10%: This fee typically covers rent collection, maintenance coordination, tenant communication, legal compliance, and more.
• Additional Fees May Apply: Setup, tenant placement, lease renewals, and inspection services often come with separate charges, so clarify what's included upfront.
• Transparent Service Breakdown Matters: Reputable property managers clearly outline their services and fees—lack of transparency can be a red flag.
• Professional Management Saves Time and Stress: For busy or out-of-town landlords, working with a full-service company like Rent In Ottawa ensures efficient operations and peace of mind.

 

If you’re looking to rent out your home, you’ve probably wondered one thing: how much does property management cost?

In today’s blog, you’ll learn the key factors that go into that cost. But first…

Owning a rental property can be a great source of passive income, especially if you attract long-term tenants and choose the right investment. However, how you manage the property can make or break your success.

If you’re just getting started, live out of province, or have a full-time job, working with a company like Rent In Ottawa Property Management can be a smart move.

A property manager can handle everything on your behalf, including marketing, tenant screening, rent collection, and maintenance. Of course, that service comes at a cost.

So, how much does property management actually cost? Here’s what you need to know. Keep reading to learn more!

 

What Are the Different Fees That Property Managers Charge? 

Initial Setup Fee

Some property management companies charge it while others don’t. The fee is meant to cover the cost of setting up a new account. It covers things like paperwork and any necessary processes required. 

The fee usually ranges between $400 and 700 CAD. 

Property Management Fee

This is often what constitutes the bulk of a property management cost. And for a good reason! The fee is what goes into managing the day-to-day running of the property.

 

The fee is usually a percentage of the monthly collected rent. It ranges between 7- and 10%. Let’s suppose, for instance, that your property generates a monthly rental income of, say, $3,000. 

This means that you can expect the property management cost to be between $210 and $300 every month for the unit. For this amount, you can expect the property management company to handle the following services for you. 

• Collect rent when it becomes due at the start of every month. 

• Enforce the terms of the lease, such as charging the tenant a fee for late rent paid. 

• Handle repairs and maintenance issues. 

• Handle the legal aspects of the property. For instance, ensure compliance with the local habitability codes. 

• Respond to tenant inquiries on your behalf. 

• Access the property for inspections, property showing, or even to emergency concerns. 

• Communicate with tenants. 

• Market the property when it becomes vacant. 

• Conduct tenant screenings. 

• Draft rental leases that comply with local laws. 

• Coordinate utilities. 

Luckily for you, most property management companies will have dedicated service pages. These will detail exactly what services you can expect to get from them for utmost clarity and transparency. 

If a property manager isn’t upfront about what their services are, that could be a potential red flag. Keep looking. 

Tenant Placement 

This is also referred to as a leasing fee. It is a common fee that is part of the overall property management cost. The property management cost covers everything that goes into renting out the property to a qualified tenant. 

Including, getting the property rent-ready, marketing it to prospective tenants, and doing the lease signing. 

If you have a vacancy at your property, this is usually the first thing a property management company will do. They will do a walkthrough of your property and advise you on any repairs or upgrades that you may need to do. 

Next, they will begin the leasing process to ensure the property is rented by a qualified tenant. 

Property Marketing 

Property marketing is a multi-step process that requires certain things to be done efficiently for successful leasing. 

One, your property manager will need to draft a rental lease. It’ll need to be attention-grabbing to entice prospective tenants to want to read more. It must include a good headline, stunning photos, and a detailed description of the property. 

And two, the property manager will list it across multiple platforms for maximum reach. Online platforms include social media and rental listing websites like Zumper, Kijiji, and Zillow. Offline methods can include using yard signs, local dailies, flyers, and posters. 

Tenant Selection 

A property management fee also includes tenant screening and selection. This is where a property manager chooses a tenant based on a fair selection process. The screening typically involves evaluating factors such as the tenant’s:

• Rental background

• Criminal status

• Creditworthiness

• Employment history

• Monthly income

And what’s even better, property managers use an unbiased criterion that aligns with the Human Rights Act. 

Lease Signing 

After a tenant has successfully been selected, the next step would be to sign the lease and move into the property. The property manager will help you with it, as that is part of the services offered under their management fee. 

Other Fees 

The aforementioned fees aren’t the only fees under the basic management fee. There are other miscellaneous fees that you can expect to be charged as well. They include the following. 

• A fee for lease renewal. 

• A fee for coordinating maintenance work in the property when they are needed or requested by a tenant. 

• A fee for inspecting the property to ensure it looks its best at all times for high occupancy rates. 

• A fee for evicting a difficult tenant if it becomes necessary. 

• A fee for filling vacant homes. 

 

Bottom Line 

So, what’s the total cost of working with a property management company? Of course, this will depend on a myriad of other factors. Including, the property’s location, property type, and the extent of services you want overseen. 

But generally speaking, expect to pay a monthly management fee of about 7% and 10% of the collected rent. 

Rent In Ottawa Property Management is one of the most sought-after property management companies in Ottawa. We provide full-service property management solutions and can help handle everything for you. Get in touch with us to learn what sets us apart from the competition!