Property Management Pricing: Percentage vs Flat Rate Fees

Many times property owners will call for a management fee quote on a single family home and ask why we charge a $100/ month flat rate instead of a 10% fee like our competitors. On the surface it looks like the percentage fee would be a better deal if your rent is under $1000 per month. That is not always the case. Many of the management companies charge a full month’s rent for leasing. REM Commercial charges ½ of one months rent. The table below can be used for comparison to show the flat rate fee is better in this scenario.




Flat Rate

$800/Month x 12= $9600



Leasing Fee



Total Annual Fee




Be careful when comparing percentage fees to flat rate fees. Make sure you know the annual cost to manage your property. The monthly management fee is only a part of the equation and ALL costs should be considered in your decision.