What Fees Do Property Management Companies Charge?

Hiring a property management company can save landlords time, stress, and money in the long run, but one of the first questions most landlords ask is, “What fees will I have to pay?”

The answer depends on the type of property, the services provided, and the company’s pricing structure. Understanding how these fees work can help Pittsburgh landlords choose the right property management company and budget wisely for their rental business.

Here is a clear breakdown of the most common property management fees and what they typically cover.

Monthly Management Fee

The monthly management fee is the core cost of hiring a property manager. It covers the ongoing services needed to keep your rental property running smoothly, including rent collection, tenant communication, maintenance coordination, and financial reporting.

In Pittsburgh, property management fees generally range from 8% to 12% of the monthly rent. For example, if your property rents for $1,500 per month, you might expect to pay between $120 and $180 in management fees.

This fee is the backbone of professional management and ensures that everything from rent payments to tenant requests is handled efficiently.

Leasing or Tenant Placement Fee

When a property management company finds and places a new tenant, they usually charge a one-time leasing fee. This covers the cost of marketing the property, showing it to potential tenants, screening applicants, and preparing lease agreements.

The leasing fee is often equal to one month’s rent or a percentage of it, typically between 50% and 100%. Some companies may offer discounts for multiple units or long-term contracts.

A well-managed tenant placement process helps reduce vacancies and ensures reliable tenants, which directly impacts your return on investment.

Lease Renewal Fee

If a tenant decides to renew their lease, some property management companies charge a renewal fee. This fee covers the time spent negotiating new terms, updating lease documents, and ensuring the renewal complies with local laws.

In Pittsburgh, lease renewal fees are usually lower than leasing fees, ranging from $100 to $300 per renewal. While this fee may seem small, it ensures that your property stays occupied without interruptions or the cost of finding a new tenant.

Maintenance and Repair Fees

Maintenance is a crucial part of property management. Property managers typically coordinate repairs using their network of trusted local vendors, ensuring work is completed promptly and at fair prices.

Most management companies do not mark up vendor invoices, but some may charge a small coordination fee for organizing and supervising repairs. These fees are usually a percentage of the repair cost or a flat rate.

Proactive maintenance not only keeps tenants happy but also helps preserve your property’s value over time.

Vacancy Fee

A few companies charge a vacancy fee, especially if they continue to manage and monitor the property while it is empty. This fee covers property checks, advertising costs, and keeping utilities active until a new tenant moves in.

However, not all property management companies charge this, so it is worth asking before signing a contract.

Setup or Onboarding Fee

When you first sign with a property management company, there may be an initial setup or onboarding fee. This one-time charge covers the administrative costs of adding your property to the company’s system, setting up accounts, and conducting an initial property inspection.

Setup fees typically range from $200 to $500, depending on the company and the number of units being managed.

Eviction or Legal Processing Fees

Although experienced property managers work hard to prevent tenant issues, evictions can still occur. Some companies charge additional fees for handling legal paperwork, attending court, or managing the eviction process.

Before hiring a company, ask whether these fees are included in the monthly management cost or charged separately. Knowing this upfront can help you avoid surprises later.

Additional or Optional Fees

Other optional services may include property inspections, accounting assistance, or managing large-scale renovations. These fees vary widely, so it is important to review the contract carefully and understand what is included.

Transparent property management companies clearly list all fees in writing, so landlords can make informed decisions.

Choosing the Right Property Management Company

While fees are important, the cheapest option is not always the best. A high-quality property manager provides real value by reducing vacancies, maintaining tenant satisfaction, and keeping your property in great condition.

For Pittsburgh landlords, working with a reliable local company like Nulf Management Services ensures you receive honest pricing and exceptional service. They provide clear communication, detailed reporting, and a strong commitment to helping your property perform at its best.

Let’s Talk About Managing Your Property the Right Way

Understanding property management fees is the first step toward making a smart investment decision. At Nulf Management Services, we believe in full transparency with our pricing and services. Our team is here to help Pittsburgh landlords get the most out of their rental properties through dependable management, open communication, and trusted expertise.

Call 412-228-5783 today or fill out our online form to learn more about our pricing structure and how we can help you manage your rental properties with confidence.