Fees are the most misunderstood aspect of property management. Most landlords compare the monthly management percentage and stop there. But the management fee is rarely where the real cost differences lie.
Here's how to read a property management fee structure properly.
The monthly management fee
Most OKC property management companies charge between 8% and 12% of monthly rent. Tru Diligence charges 10% with a $100 minimum. This is the baseline fee — but it's not the whole story.
The leasing fee
This is what you pay when a new tenant is placed. It varies significantly — anywhere from 50% to 100% of one month's rent, or a flat fee. At Tru Diligence, we charge 50% of one month's rent. This is one of the most important fees to compare because it affects your return every time there's a turnover.
The renewal fee
Many companies charge a fee every time a lease is renewed. This can range from $0 to $200 or more. We charge $100 per renewal. A company that charges $0 in renewal fees may be making it up elsewhere.
Maintenance markup
Most property management companies mark up vendor invoices for maintenance coordination. This is legitimate — coordination takes time and expertise. Our markup is 15%. Watch for companies that don't disclose this — it's a hidden cost.
Inspection fees, vacancy fees, cancellation fees
Some companies charge for inspections, for managing a vacant property, or for canceling the management agreement. Know what these are before you sign.
The total cost picture
Add up all the fees across a typical year — management, leasing, renewal, maintenance markup — and compare that to what you get in return. The cheapest management fee doesn't always mean the lowest cost management.