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:

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.

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.

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.

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+

Inspection Fees

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

• $75-$250 per inspection

• Some include 1-2 free inspections per year

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

The right property management company should be transparent about pricing and clear about the value behind every fee. While cost matters, experience, tenant quality, vacancy reduction, and proactive maintenance often make a bigger financial difference in the long run. If you want straightforward pricing and full service support tailored to Chicago landlords, Teton Properties provides detailed fee structures and hands on management designed to protect your investment and maximize returns.